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Key Takeaways Competition from free Office Productivity software will likely cause seat growth to decline for home and commercial customers Increased smartphone compute power and diminishing compute needs will see Notebook sales decline A shift towards PC and mobile gaming will be detrimental to Xbox console sales and services Catalysts Stagnating Growth in Microsoft Office Revenue Microsoft’s Office suite has been a staple in workplaces and home offices for years, but competition from free cloud-based alternatives like Google Docs and other vendors like Apple, Cisco Systems, Meta, IBM, Okta, Proofpoint, Slack, Symantec, Zoom, and numerous web-based and mobile application competitors are jeopardising this key revenue stream. The issue for Microsoft here is simple; what matters most to customers is convenience, cost and simplicity, and with Office providing a similar product at an elevated price for consumers means that plenty of users which switch to alternatives like Google Moreover, there was a significant price hike in Microsoft 365 and Office 365 business prices by as much as 20 percent in March 2022.

Key Takeaways Google’s dominance in search, and digital advertising industry growth will remain in tact. Cloud computing trends will support Google Cloud revenue growth Alphabet may implement AI slightly slower, but won’t fall behind Current estimates on costs per generative AI query are prohibitive to profitability Until processing power improves and makes generative AI cheaper, Google is unlikely to lose much market share.

Key Takeaways Apple will dominate thanks to brand, installed user base, and ecosystem of products More revenue from Services will increase gross and net margins Apple Silicon is paving the way for it to gain market share in the PC space More parts being developed in-house should increase product margins Biggest risks are manufacturing challenges and reliance on emerging markets growth (India) Catalysts Apple’s Brand leads to sticky revenues and increasing installed device base Apple has become more than a tech hardware and software company, it has become a lifestyle product. It has embedded itself into the lives of billions of people around the world, many of whom say they couldn’t live without their iPhone.

Key Takeaways Reality Labs will continue to see underwhelming active user numbers despite unit sales growth Metaverse software like Horizon Worlds will struggle to take off due to concerns of an overly digital modern world Developer support for Metaverse apps will remain weak New user data measures will impact targeted advertising effectiveness Cost of revenue will increase on ad-related revenue streams due to a switch to AI Apps like Instagram and Facebook will begin to see a plateau in user growth in the US and Europe Catalysts Reality Labs & The Metaverse Is A High-Cost Bet with Diminishing Returns The company formerly known as Facebook took an undeniably ambitious leap into the future with its transformation into a metaverse-focused company. The strategic realignment was so significant, that the company decided to abandon the name it was known throughout the world as to now be known as Meta Platforms.

Catalysts Robust Financial Performance : In the third quarter of fiscal year 2024, ADP reported impressive results: Revenue : Reached $5.3 billion, a 7% increase year-over-year, surpassing estimates. Net Income : Grew 14% to $1.2 billion, exceeding estimated figures.

Key Takeaways Slowing growth and margin pressure by new tech will force low return reinvestment Buying Figma is cheaper than competing, but regulators may block Experience Cloud is a growth story, but not Adobe's strong suit High-quality business, but high-growth perception is unsustainable and will likely subside Catalysts Company Catalysts Margins compressing from AI-driven design The adoption of AI-driven design - the $63B TAM can improve as more people utilize creative works, but the profitability of such projects may decline due to the higher availability of AI driven design. This may result in more revenue but lower profitability for Adobe.

Key Takeaways Payments industry is likely going to become increasingly competitive. PYPL's margin trouble will likely persist - too many competing firms + high incentive to offer lower fees.

Key Takeaways Market has low expectations for Intel due to a series of strategic errors in recent years. Market is underestimating Intel’s aggressive strategy to regain product leadership.

Catalysts Products or Services Impacting Sales or Earnings Coca-Cola Consolidated (COKE) primarily distributes and markets nonalcoholic beverages, including products from The Coca-Cola Company, Keurig Dr Pepper, and Monster Energy. Key products that could significantly impact sales or earnings include: Sparkling Beverages : Coca-Cola, Diet Coke, Sprite, and Fanta.