Microsoft (MSFT) co-founder Bill Gates is still heavily involved with the company he set up with Paul Allen in 1975, with investors turning attention to the company’s AI investment amid a selloff in the tech sector.
Speaking to the Wall Street Journal, the tech billionaire said he remains very close to Microsoft and its CEO Satya Nadella; and had some words of advice for Elon Musk.
“I love doing product reviews, and he brings me in to do that,” Gates said. “It’s maybe 15% of my time. It helps me stay up to date.”
Gates also said he supports President Trump’s effort to reduce federal expenditures through a new Department of Government Efficiency, known as DOGE, which is being led by fellow tech entrepreneur Musk.
“I’m among the people who think the deficit needs to be brought down because otherwise it will create a financial problem for us,” he told the WSJ.
As part of the DOGE mandate, it’s been reported that Musk is considering using blockchain to optimize spending, protect sensitive data, and steward resources.
Gates said that, in order to cut $2 trillion in spending as promised, Musk would need to look at everything the government spends money on, including pensions, defense, and healthcare.
However, the DOGE mandate signed by President Trump seems to limit the scope of the department.
As set out in the Executive Order, the new entity will look at “modernizing Federal technology and software to maximize governmental efficiency and productivity.”
This seems to limit the mandate to focus solely on information technology issues at a federal level, rather implying than a wider policy brief.
MSFT Earnings on Tap
MSFT is slated to report results for the second quarter of Fiscal 2025 after the market closes on Wednesday, January 29th. Wall Street expects Microsoft’s Q2 EPS to grow by 6.1% to $3.11 and revenue to rise 11% to $68.89 billion. Shares were down over 3% on Monday as part of a broader selloff of tech stocks.
A key consideration will be the firm’s ambitions to invest $80 billion on AI this year. Investors will be keen to see whether this plan survives DeepSeek’s disruptive new model.
Is Microsoft a Buy, Hold, or Sell?
Wall Street has a Strong Buy consensus rating on MSFT, based 27 Buys and two Holds. The average MSFT stock price target of $509.42 implies about 19% upside potential.
