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Technology leader Microsoft has released its quarterly report beating analysts’ expectations. The company’s balance sheet and price surge were largely driven by strong revenue in its cloud computing Azure unit but was well supported by its other service areas. The results for the company’s third quarter showed a double-digit growth figure with revenue of $49.4 Billion up 18% and net an income of $16.7 Billion. The company’s profit rose 8% from the corresponding period 12 months ago.
Company CEO, Satya Nadella had this to say about the results, “Going forward, digital technology will be the key input that powers the world’s economic output. Across the tech stack, we are expanding our opportunity and taking share as we help customers differentiate, build resilience, and do more with less.”
Much of Microsoft’s success can be attributed to how well diversified its services are. Many other technology stocks have struggled in recent times such as Meta, Google, and Netflix with slower growth and interest rate pressures. However, Microsoft has been able to stand tall as its services such as LinkedIn, Gaming, Cloud, and its cyber security were able to thrive. The Azure cloud system that Microsoft runs was the star performer growing by 47%. LinkedIn also proved to be a strong area for Microsoft, increasing its revenue by 34% for the year.
In the short term, as interest rate hikes loom and the world is dealing with the remnants of the Covid 19 pandemic and Russia and Ukraine there may still be some headwinds ahead. Microsoft is up against the markets as the NASDAQ recently fell to its lowest levels since 2020. Consequently, despite Microsoft’s strong performance, the company’s share price may still face a volatile short-term future. In the long term, Microsoft has shown that it has formed a strong defensive element against the longer-term macro threats.
The Microsoft share price closed the day up 4.81% from the day before.
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