$Microsoft(MSFT.US)Context: Microsoft CEO Satya Nadella said the company thinks of its AI product Copilot "as the ne…

$Microsoft(MSFT.US)

Context: Microsoft CEO Satya Nadella said the company thinks of its AI product Copilot "as the new OS for work" and that its "business model is expanding from per-seat subscriptions to include consumption." Nadella said that with Agent 365, the company provides a platform for AI observability, which helps customers to manage and optimize the performance and cost of their agents. He added that “over 50 million agents are now in the registry,” up more than 30% from the previous quarter.

Meanwhile, Alphabet CEO Sundar Pichaisaid on the company’s third-quarter earnings call that Google focused first on enterprise agents “because the bar for security, safety and governance is extremely high." As a next step, he said, the company is bringing the features to Search and "to our billion users on the Gemini app.” He added that “Agents will operate as a unifying layer across our products,” including Chrome, Android and Workspace. The Google parent reported third-quarter revenue of about $127.58 billion, missing analyst estimates of $128.20 billion, according to Benzinga Pro. Shares of the company tumbled about 9.75% to $290.52 after hours on Wednesday. Microsoft reported first-quarter revenue of $92.28 billion, up 19% year-over-year, which beat analysts’ estimate of $90.66 billion, according to data from Benzinga Pro. Revenue from the Agents and Infra segment surged 25% year-over-year to $76.8 billion

My Trade:

Takeaway: Alphabet said Gemini models now process nearly 32 billion API tokens per minute, and the Gemini app now has over one billion users, making it the fastest-growing product in the company’s history. Yet the stock is tanking heavily in contrast to Microsoft, who demonstrated that while long term costs could yield better future returns, investors still prefer a stronger balance sheet. @Captain's Treasure