Dear stockbrokers, dear stockbrokers,
Yesterday, Microsoft, the first US technology giant, reported on the past quarter. I’ll be brief: Sales increased by a paltry 2% and have not been this weak for 6 years.
Net income fell 12%. In particular, the US company’s bread and butter business failed. Sales of the popular Windows applications collapsed by 39%.
After all, Cloud is still doing quite well. The “Intelligent Cloud” unit still reported growth of 18%. But here, too, the growth curve should flatten out in the next few quarters. In other words, these numbers are bogus and don’t help the market one yard.
The announcement that Microsoft will lay off around 10,000 employees fits into the bleak picture. Savings and layoffs are also being made at Amazon, Meta Platforms and IBM.
Surprisingly, Microsoft stock has held up relatively bravely so far. On a weekly basis, the German trading centers, which have already incorporated the after-hours figures, only posted a mini loss on a weekly basis.
Nevertheless, Microsoft has set the tone for the coming days as a lighthouse company in the industry. The NASDAQ 100 halted the recovery rally yesterday. We now need another lighthouse – maybe Apple? – which constructively counters Microsoft’s weaknesses.
But be honest! How likely is that? Because the high-priced tablet computers from the Surface series from Microsoft are currently selling like sour beer. I don’t see any reason why Apple hardware should be able to be sold noticeably better at the moment.
It stays as it is. The NASDAQ has little sun at the moment. Instead, investors prefer substance from Europe. At the moment: (old) industry beats Silicon Valley. It’s because valuations are really cheap right now in Europe. Example BASF: The company slipped into the red last year due to several billion dollar write-downs.
Nevertheless, the share suddenly increases because it has already been beaten down to its bare and certified book value in the past. Now the Russian problem business has been eliminated from the balance sheet, and the enormous substance of this traditional German company is becoming clear to all of us.
But we also find real pearls and the best hard stocks in the second row. Implenia from Switzerland has been catching my eye for days. The company from the construction industry currently generates annual sales of almost CHF 4 billion. On the stock exchange, of course, the Confederates currently only weigh slightly more than CHF 700 million. In English: Here you get back 5 francs of sales for one franc. The only thing cheaper now is to give away the shares.
Now more and more US investors are jumping on the Europe train. They have recognized that their own shares are currently hardly generating any returns, while the European indices have been increasing for weeks. That’s why, by the way, our common currency has been steadily gaining ground against the US dollar for weeks. Because the money is currently migrating from the US to Europe.
For US investors, this mechanism is currently a real yield machine. You sell your own currency and get nice additional profits in the foreign currency euro. It is possible that this trend, which is particularly advantageous for US investors, will continue.
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With kind regards
Alexander of Parseval
Analyst and Investment Advisor
PS Stay tuned here in the coming days! I will once again deal with a rather unpleasant topic: the threat of war over Taiwan and why a Taiwan war will have far worse consequences for the world economy than the Ukraine war. I repeat, be sure to stay tuned so you’re prepared this time!