Microsoft stock up on strong cloud guidance
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Satya Nadella, CEO of Microsoft, gives a lecture at Tsinghua University about dreams, struggles, and creation on September 25, 2014. This was in Beijing, China. Nadella visited China Thursday, his first visit to the country.
Visual China Group | Getty Images
MicrosoftThe shares rose about 4% Wednesday morning, just a day after the company released its results. strong guidanceThe latest earnings report will include the forecast for the quarter ahead.
Analyst estimates were beaten by the company’s earnings and revenue numbers, with adjusted earnings per share reporting $2.48 for fiscal quarter two and revenue of $51.73 billion.
Microsoft reported 46% revenue growth, continuing strong growth of its cloud services business. This is after the industry’s four-quarters of at least 50% revenue growth.
Despite the initial concern that investors had about the slowdown, shares fell right after the report. However, after providing guidance by executives, trading turned up Tuesday afternoon. Amy Hood, finance chief at Microsoft, stated that Azure expects to see a sequential acceleration in constant currency growth in the current quarter.
“MSFT reported another strong quarter. While the sequential slowdown in Azure growth caused initial noise in print, these concerns quickly dissipated with management’s guidance of a Q/Q acceleration for Azure CC growth,” Stifel analysts wrote Wednesday.
Recent boom in the tech industry has been a boon. broad selloff Concerns about increasing interest rates. Microsoft and Big Tech peer companies like it as of Wednesday morning Apple AmazonThe Nasdaq 100 had the greatest positive impact.
We recommend that growth investors purchase MSFT after the 14% YTD selling-off which appears excessive. This is on the basis of favorable risk-reward.” Piper Sandler analysts wrote.
Jordan Novet from CNBC contributed to this report.
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