Microsoft hits $1 trillion mark as earnings beat expectations
- US Market
- 6 months ago
Microsoft shares soared past the $130.50 mark hence giving the tech giant a market cap of over $1 trillion.
Shares have rallied 34% over the past year while earnings and revenue figures for the first quarter have beaten analysts’ expectations as revenue figures came in at $30.6 billion vs. $29.84 billion as expected.
Sales increased by 14% in the latest quarter, driven by the company’s transition to the public cloud as more large businesses offload their servers and data storage to Azure infrastructure.
Gross margin, or the percentage of revenue left after accounting for the costs of goods sold, was 66.7% up from 65.4% a year earlier while net income rose 19% to $8.8 billion.
Microsoft’s commercial cloud business, which includes Azure, grew 41% in the quarter to $9.6 billion, while Azure is still much smaller than rival Amazon Web Service, its revenue increased by 74%.
Microsoft said on the earnings call that revenue in the fiscal fourth quarter will be $32.2 billion to $32.9 billion, which looks to beat the expected figure of $32.6 billion.
Source: Smart Trend Team