Published: Sat, October 27, 2018
Electronics | By Shannon Stone

Microsoft's head is in the clouds

Microsoft's head is in the clouds

But since October 1, Microsoft stock has dropped 6.5 percent.

Microsoft's cloud platform Azure, which performs computing and storage for companies at online data centers, saw revenue grow 76 percent.

On the Surface side, Microsoft reported earnings of $1.037 billion, the fifth consecutive quarter where this brand brought in over a billion dollars in revenue.

"Microsoft continues to be in the midst of shifting its business from traditional, slow growing PCs into a leader in the fast-growing cloud market on the shoulders of its core Azure platform, which our checks indicate are showing considerable strength this quarter yet again", he wrote. Even though Microsoft has remained rather hands off on its LinkedIn acquisition, it did count the social networks revenue growth as increasing year over year to the tune of 33%. You can see revenue from software and hardware grew strongly.

Microsoft's profits have risen by more than a third despite growth in its crucial cloud computing business slowing down.

The Redmond, Washington based technology giant reported net income of $8.8 billion (roughly Rs. 64,500 crores) on revenue of $29.1 billion (roughly Rs. 2.1 lakh crores) in the quarter that ended on September 30, up 34 percent and 19 percent respectively from the same period a year earlier. That figure beat the consensus analyst estimate of $10.13 billion.

For gaming, revenue was up 44% with Xbox hardware reporting a significant 94% growth in revenue; the prior year was soft from no new hardware releases; Xbox Live is now up to 57 million monthly active users. During the quarter, Microsoft returned $6.1 billion to shareholders in the form of dividends and share repurchasing.

"Xbox has the key gaming community and monetization capability", said Nadella. Microsoft estimated revenue of $9.95 billion to $10.15 billion for that unit in the current quarter.

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