Microsoft stock marketwatch1/1/2024 “And you should expect to see our operating-expense growth moderate materially through the year while we focus on growing productivity of the significant head-count investments we’ve made over the last year.” “While we continue to help our customers do more with less, we will do the same internally,” she said. Hood also suggested that more cost cuts could be coming to Microsoft, after the company confirmed layoffs of fewer than 1,000 employees earlier this month. In the current quarter, Chief Financial Officer Amy Hood suggested a similar sequential decline is in store for Azure, saying percentage growth should decline by five points on a constant-currency basis. which counts Microsoft as one of its 30 components - has gained 2.2%.Opinion: The cloud boom is coming back to Earth, and that could be scary for tech stocks Has gained 7.8% and the Dow Jones Industrial Average Shares have gained more than 15% so far in 2023, as the S&P 500 index Microsoft stock has been on a tear this year, amid excitement for the company’s incorporation of artificial-intelligence features derived from its investment in ChatGPT maker OpenAI. Shares also gained, as Microsoft executives discussed plans for larger capital-expenditure spending on their AI efforts. In “Productivity and Business Processes,” Hood predicted sales of $17.9 billion to $18.2 billion, while analysts on average were expecting $17.83 billion, according to FactSet.Īmazon shares also gained in Tuesday’s after-hours session, moving nearly 5% higher after Microsoft’s results suggested that declining growth of cloud-computing could be better than expected. About Azure, she said growth would hit 26% to 27% in constant currency analysts on average were expecting Azure growth of 25.8% in constant currency, according to FactSet.įor the PC business, Hood guided for revenue of $13.35 billion to $13.75 billion, while analysts on average were expecting $13.1 billion, per FactSet. Hood guided for fourth-quarter revenue of $23.6 billion to $23.9 billion for the “Intelligent Cloud” segment, while analysts on average were expecting $23.79 billion, according to FactSet. Analysts on average expected $17.02 billion, as last year’s Office price increases continue to ripple through to new customers. The “Productivity and Business Processes” segment - made up of cloud-software assets such as the Office suite, as well as LinkedIn - reported revenue of $17.52 billion, up from $15.79 billion a year ago. Analysts on average expected results in the “More Personal Computing” segment to decline to $12.18 billion as inventories stack up for PC makers. The PC segment, which also includes the Xbox videogame business, reported revenue of $13.26 billion, down from $14.52 billion a year ago. Microsoft does not break out Azure results specifically beyond percentage growth of revenue, even as rivals Inc.įully report results for their competitive services. Analysts on average expected $21.87 billion, according to FactSet. Microsoft reported that its cloud-computing segment, dubbed “Intelligent Cloud,” produced revenue of $22.08 billion, up from $19.05 billion a year ago. All three segments met or beat analysts’ expectations in Tuesday’s report and forecast, however. The legacy personal-computer business has been beset by the end of elevated pandemic-era demand for PCs and videogames, and the cloud-software and cloud-computing businesses have dealt with increased scrutiny from corporate customers looking to manage costs more effectively. Microsoft ended Tuesday’s regular session with a share price of $275.42, but were trading close to $300 in the extended session shares have not closed higher than $300 since April 7, 2022, according to FactSet records, and Microsoft’s 52-week high is $294.18.Īll three major segments for Microsoft have faced concerns this year. ![]() ![]() Microsoft shares initially gained 5% in after-hours trading following the earnings report, then jumped to gains closer to 9% following Hood’s forecast. “In our largest quarter of the year, we expect customer demand for our differentiated solutions, including our AI platform and consistent execution across the Microsoft cloud, to drive another quarter of healthy growth,” Hood said. In a conference call Tuesday afternoon, Microsoft Chief Financial Officer Amy Hood projected fiscal fourth-quarter revenue of $54.85 billion to $55.85 billion, while analysts on average were expecting $54.71 billion, according to FactSet. ![]() ![]() Analysts on average expected Azure to grow 26.2%, a number that has been shrinking since Microsoft executives’ forecast three months ago predicted more deceleration. Microsoft’s stock has been driven in recent years by the performance of Azure, which increased revenue by 27% in the quarter.
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