Bull or bear on Microsoft?
Microsoft shares reported earnings per share of $2.99 and a revenue of $56.5B, surpassing estimates of $2.65 and $54.5B respectively.
The company’s Intelligent Cloud segment experienced a 19% growth, producing $24.3B in revenue, and Azure’s revenue alone jumped 29% during the quarter.
Additionally, Microsoft’s recent $68.7B acquisition of Activision Blizzard will play a role in next quarter’s earnings.
The company is heavily investing in AI, with CEO Satya Nadella emphasizing its integration across the company’s tech stack.
This commitment to AI has led to the launch of generative AI-powered Copilot apps for various Microsoft products, designed to boost productivity.
Microsoft previously indicated that AI would not yield significant results until after the start of 2024.
However, Azure’s growth is already being influenced by generative AI, helping to outpace expectations.
Overall, the company anticipates a sales increase of up to 8.7% in the upcoming quarter, surpassing analyst forecasts.
Sources:
www.cnbc.com/2023/10/24/microsoft-msft-q1-earnings-report-2024.html
www.theverge.com/2023/10/13/23791235/microsoft-activision-blizzard-acquisition-complete-finalized
finance.yahoo.com/news/microsoft-stock-jumps-after-revenue-earnings-beats-200428078.html
www.nytimes.com/2023/10/24/technology/microsoft-quarterly-results.html