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Motley Fool Hidden Gems Investing

London Calling Microsoft

Motley Fool Hidden Gems Investing

The Motley Fool

Investing, Business

4.33.1K Ratings

🗓️ 12 December 2022

⏱️ 26 minutes

🧾️ Download transcript

Summary

A new 10-year deal with the London Stock Exchange sends shares of Microsoft higher. (0:21) Jason Moser discusses: - The "win-win" deal between the two sides - How cloud services like Azure and AWS are becoming utilities - The short, not-so-happy public life of Weber Grill - Peter Lynch's advice being a starting point (not a finish line) for investors (12:30) Ricky Mulvey talks with Eddie Alterman, host of the "Car Show" podcast, about the used car market and how GM is competing with Ferrari. Stocks mentioned: MSFT, LDNXF, AMZN, GOOG, GOOGL, WEBR, COOK, GM Holiday Music: Sugar & Booze by Ana Gasteyer Host: Chris Hill Guests: Jason Moser, Eddie Alterman Producer: Ricky Mulvey Engineer: Rick Engdahl Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

The Tech Giant strikes a new deal and shares of Weber Grill go up in smoke.

0:09.9

Motley Fool Money starts now.

0:11.7

I'm Chris Hill, joining me today, Motley Fool Senior Analyst, Jason Moser.

0:18.6

Happy Monday.

0:19.6

Happy Monday indeed.

0:20.8

Let's start with Microsoft, shall we?

0:23.5

Because Microsoft struck a deal with the London Stock Exchange.

0:27.6

The deal calls for the exchange to spend nearly $3 billion over the next decade on Microsoft

0:32.7

products.

0:33.7

It sounds like most of that is going to be spent on Azure Cloud services.

0:40.3

The London Stock Exchange gets a greater use of data and the chance to appeal to a broader

0:45.7

customer base in exchange for nearly $3 billion.

0:49.2

So it kind of seems like a win-win here.

0:51.8

Yeah, it definitely feels like it's a good thing for both companies.

0:57.0

When you look at it in the grand scheme of things, right, I think it's in agreement over

1:02.5

10 years to spend a minimum of $2.8 billion on cloud-related products with Microsoft.

1:07.7

So if you stretch that out, I mean you're looking at what, essentially, basically $280 million

1:13.2

per year over the next 10 years, and for at the minimum.

1:17.6

And for a company like Microsoft, a business that brought in $203 billion over the last

1:23.6

12 months, obviously not terribly meaningful from that perspective, right?

1:29.4

I mean, just from a simple numbers perspective, it's a drop in the bucket.

1:35.0

When you consider LSE, I mean that's, that's, they brought in around $9.1 billion in

...

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