The tech company reached $51.73 billion in quarterly revenue, better than analysts polled by Refinitiv had estimated ($50.88 billion on average). Its earnings per share came in at $2.48, versus a market estimate of $2.31.
https://www.telegraaf.nl/financieel/736324397/analyse-race-om-macht-in-metaverse-van-start
Microsoft, which announced last week to buy video game maker Activision Blizzard for $69 billion, reported a 20% year-over-year overall revenue increase. That was already a 22% increase in the previous quarter.
In particular, his cloud-based business services revenues grew strongly, up 25.5% to $18.3 billion. Revenue from the Azure and other cloud services business grew by 46%.
Microsoft has become one of the most valuable companies in the world under its new CEO, who has continued to change course toward enterprise software and related services, especially cloud services.
The negative reaction to the stock price, according to market watchers, is due to the great nervousness in the markets, the day before news of inevitable Fed rate hikes is expected.
Technology stocks appear to be the most affected by a negative effect on equities. In addition, many small investors had entered the Microsoft stock in recent days, which further reinforced the vehemence of the reaction.
Xbox success
Microsoft continues to benefit from the increasing demand for products that employees need to work from home during the corona pandemic, according to these figures. Due to the combination of working from home and working in the office, enterprises require cloud services from the software company. Microsoft also made more money with Office packages, which include Excel and Word.
The company seems to be paying more attention to games with the acquisition of Activision Blizzard. Sales of its Xbox game console rose 4% year-on-year in the past quarter. In the same period in 2020, the latest Xbox hit the market, but the offer was limited.