Microsoft: Revenue Bounces 17% Following AZURE Cloud Business – Global Markets

The cloud and computing software giant, Microsoft (

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) Beat analysts’ forecasts for the second fiscal quarter, summary data and specific activity divisions. The company is recording revenue of $ 43.08 billion during the second fiscal quarter of 2021, compared to an expected $ 40 billion. On the bottom line, earnings totaled $ 2 and 3 cents a share compared to the $ 1.64 that the market expected.

Revenue grew 17% year-over-year, partly due to reliance on Azure cloud operations, the strongest competition for Amazon’s dominance. Cloud revenue totaled $ 14.6 billion. An increase of 23% compared to the corresponding quarter last year.

Microsoft management said revenue from AZURE grew by 50%. Analysts expected growth of only 42%. Microsoft hides Azure revenue in dollars.

The PC segment, which includes windows, games, devices and search advertising, generated revenue of $ 15.12 billion, which was about 14% more than earlier estimates.

The segment’s operating profit fell to 34.5% from 40% following the introduction of two Xbox video game consoles in November. Here, too, it is a higher-than-expected profit.

Last week, Microsoft announced that it would invest $ 2 billion in Cruz, a company that develops autonomous cars. The main beneficiary is General Motors, which holds the majority of the shares in the company. In response to the announcement, GM shares rose about 8% that day. In return for that investment, Cruz will use Microsoft’s cloud technology. Hopefully this will become a leading factor in autonomous vehicle technology. (To the full article)