Microsoft Corporation (NASDAQ: MSFT) stock rise a respite in volatile market environment

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Microsoft Corporation (NASDAQ: MSFT) stock rose over 2% on 19th July, 2019 (As of 9:38 am GMT-4; Source: Google finance) after the company posted better than expected results for the fourth quarter of FY 19. MSFT has delivered more than $125 billion in revenue for the full year 2019 with double-digit top line and bottom line growth. The commercial cloud business is the largest in the world, surpassing $38 billion in revenue for the year with gross margin expanding to 63%. Microsoft`s net income rose to $13.19 billion in the fourth quarter, from $8.87 billion a year earlier.

Moreover, MSFT has been shifting away from its Windows operating system software and towards cloud services, in which customers move their computing work to data centers managed by Microsoft.  Revenue growth in Azure was 64% in the fiscal fourth quarter ended June 30, compared with 89% a year earlier and 73% in the prior quarter. Microsoft does not provide an absolute revenue figure for Azure, blending it into its “intelligent cloud unit,” which had revenue of $11.4 billion compared with analyst expectations of $11.0 billion, according to Refinitiv data.

MSFT in the fourth quarter of FY 19 has reported the adjusted earnings per share of $1.37, beating the analysts’ estimates for the adjusted earnings per share of $1.21. The company had reported the adjusted revenue growth of 12 percent to $33.72 billion in the fourth quarter of FY 19, beating the analysts’ estimates for revenue of $32.73 billion.

Meanwhile, MSFT & and AT&T Inc have reached a deal under which the telecommunications company will tap Microsoft’s Azure cloud service for its computing needs and use Microsoft 365, which includes Office productivity software, for much of its 268,000-strong workforce. Under the deal, Microsoft and AT&T will also work together on so-called edge computing, which will see Microsoft technology deployed alongside AT&T’s coming 5G network for applications that need extremely small delays in passing data back and forth, such as air traffic control systems for drones. The multi-year deal is worth more than $2 billion. For Microsoft’s part, the company will also gain a partner to sell its edge computing services, which will help software developers write programs for situations like factories whose machines are fitted with sensors to collect data or retail stores fitted with sensors and cameras to help keep inventories up to date.

Microsoft forecasted between $10.3 billion and $10.5 billion in intelligent cloud sales for the fiscal first quarter, with a midpoint above analyst estimates of $10.13 billion.

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