Microsoft shares surge toward 1999 high

Share This Story!

Let friends in your social network know what you are reading about

Microsoft shares surge toward 1999 high

Microsoft shares surged 5% in early trading, on track to pass a high set in 1999, helped by enthusiasm for progress in its cloud business.

Loading…Post to Facebook
{# #}
CancelSend

Sent!

A link has been sent to your friend's email address.

Posted!

A link has been posted to your Facebook feed.

Join the Nation's Conversation

To find out more about Facebook commenting please read the Conversation Guidelines and FAQs

Microsoft shares surge toward 1999 high

Marco della Cava , USA TODAY 9:22 a.m. EDT October 21, 2016
636104948552356554-satya.JPG

Microsoft CEO Satya Nadella has been instrumental in re-focusing the company on being a cloud-first business largely targeting enterprise customers.(Photo: Mat Hayward, Getty Images)

Microsoft shares surged 5% in early trading, on track to pass a high set in 1999, helped by enthusiasm for progress in its cloud business.

The stock was up 5% at $60.30, poised to breeze past the $58.72 mark set in December 1999.

Friday's rally follows Microsoft's latest quarterly report, out late Thursday, that beat analyst expectations for adjusted sales and profit and showcased a doubling of growth in its Azure cloud business, while reflecting continued strain from consumers' pivot away from PCs and traditional software purchases.

"The biggest takeaway from this quarter's results will be the re-acceleration of Microsoft's cloud business, which now is on pace for more than $13 billion annualized revenue," says Josh Olson of Edward Jones Research. "Microsoft now is approaching equal-footing with AWS cloud platform in terms of aggregate cloud revenue, and is steadily transforming its business to the next era of computing."

Microsoft reported first-quarter 2017 adjusted earnings of 76 cents a share on adjusted revenue of $22.3 billion Thursday. That easily topped the 68 cents and $21.7 billion analysts predicted, according to S&P Global Intelligence.

First-quarter reported revenue was nearly flat at $20.45 billion compared to $20.38 billion in the year ago quarter, while net income fell 4% to $4.8 billion.

Personal computing revenues declined 2% to $9.3 billion, which included a 72% drop for Microsoft's ill-fated phones business and a 5% drop in gaming. Windows OEM and commercial products revenue both remained flat.

Helping boost the quarter were gains in productivity and business processes, up 6% to $6.7 billion, and intelligent cloud, up 8% to $6.4 billion.

That cloud jump includes a 116% improvement for Microsoft Azure, which has roughly 10% of the global cloud market compared to industry leader Amazon Web Services at 30%. Microsoft CEO Satya Nadella has predicted that the company would hit $20 billion in annual cloud revenue by 2020.

CONNECTTWEETLINKEDINCOMMENTEMAILMORE
Read or Share this story: http://usat.ly/2eYHisv

SHARE THIS
Previous Post
Next Post