Home Shayne Heffernan on Investments Cloud Service Drive Microsoft

Cloud Service Drive Microsoft

by S. Jack Heffernan Ph.D

Microsoft said Tuesday profits rose sharply in the past quarter amid strong momentum in cloud services for businesses amid the extended pandemic.

Profits in the three months to March 31 jumped 44 percent from the same period a year ago to $15.5 billion while revenues increased 19 percent to $41.7 billion.

The results showed ongoing momentum for Microsoft as it focuses on services for enterprises in the internet cloud, which has become more critical during the global health crisis of the past year.

“Over a year into the pandemic, digital adoption curves aren’t slowing down. They’re accelerating, and it’s just the beginning,” said chief executive Satya Nadella.

“We are building the cloud for the next decade, expanding our addressable market and innovating across every layer of the tech stack to help our customers be resilient and transform.”

Microsoft said its commercial cloud revenue was up some 33 percent in its fiscal third quarter as part of the growing trend.

It reported strong gains in its Office suite of products and a more modest increase in similar software and services for consumers.

Microsoft saw gains across a range of products and services, including its Xbox gaming content and services (revenue up 34 percent), search advertising (17 percent), the LinkedIn professional social network (25 percent) and its Surface line of computing products (12 percent).

The surging market for personal computers helped drive revenue for the Windows operating system up 10 percent year-over-year, with a similar increase in Windows commercial products and cloud services.

The results come with Big Tech firms facing growing scrutiny for dominating key economic sectors, while seeing their influence and profits rise during the pandemic.

Shares in Microsoft, whose market value has approached $2 trillion in recent days, dipped some three percent in after-hours trade following the results.

Dan Ives at Wedbush Securities said the results showed “strong numbers that will be another feather in the cap for Microsoft” and pointed to “the stock selling off after hours in knee jerk fashion as the Street was hoping for a bigger top-line beat.”

Ives added that “this cloud shift and WFH (work from home) dynamic looks here to stay and the company stands to be a major beneficiary of this trend.”

You may also like

logo-white

Your Trusted Source for Capital Markets & Related News

Latest Articles

© 2024 LiveTradingNews.com – For The Traders, By The Traders – All Right Reserved.

The information contained on this website shall not be construed as (i) an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities or services, (ii) investment, legal, business or tax advice or an offer to provide such advice, or (iii) a basis for making any investment decision. An offering may only be made upon a qualified investor’s receipt not via this website of formal materials from the Knightsbridge an offering memorandum and subscription documentation (“offering materials”). In the case of any inconsistency between the information on this website and any such offering materials, the offering materials shall control. Securities shall not be offered or sold in any jurisdiction in which such offer or sale would be unlawful unless the requirements of the applicable laws of such jurisdiction have been satisfied. Any decision to invest in securities must be based solely upon the information set forth in the applicable offering materials, which should be read carefully by qualified investors prior to investing. An investment with Knightsbridge is not suitable or desirable for all investors; investors may lose all or a portion of the capital invested. Investors may be required to bear the financial risks of an investment for an indefinite period of time. Qualified investors are urged to consult with their own legal, financial and tax advisors before making any investment. Knightsbridge is a private investment firm that offers investment services to Qualified Investors, Members and Institutions ONLY. Qualified Investors are defined as individuals who have met those Qualifications in the relevant jurisdictions. Members are defined as individuals who have been accepted into the Knightsbridge membership program. Institutions are defined as entities such as banks, pension funds, and hedge funds. If you are not a Qualified Investor, Member or Institution, you are not eligible to invest with Knightsbridge. All investments involve risk, and there is no guarantee of profit. You may lose some or all of your investment. Past performance is not indicative of future results. Knightsbridge is not a registered investment advisor, and this disclaimer should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions. By accessing this website, you agree to the terms of this disclaimer. Thank you for your interest in Knightsbridge.
CLOSE