Microsoft’s shares have undergone pressure after the growth of Azure Cloud Computing Service and unfortunate quarterly earnings, despite the increase in earnings in the previous quarter and increasing operating income.
Microsoft’s shares are declining, despite the fact that profits in the previous quarter have increased and operating income is increasing. Microsoft’s shares decreased by 5 % after reporting a decrease in Azure Cloud Computing Service and disappointing quarterly earnings.
On January 29, 2205, Microsoft announced the quarterly results that ended on December 31, 2024, compared to the previous year’s response period.
The company’s revenue was $ 69.6 billion, an increase of 12 %, but operating income increased by $ 31.7 billion, an increase of 17 %. Net income was $ 24.1 billion, an increase of 10 %. The profit per share after thinning was $ 3.23, an increase of 10 %.
Microsoft has reported a $ 69.6 billion profit of $ 3.23 per share (EPS) per quarter. Based on Bloomberg consensus numbers, analysts expected $ 3.13 EPS for $ 68.8 billion.
Rinkedin’s revenue has increased by 9 %. In addition, search and news advertisements, excluding traffic acquisition costs, have increased 21 %.
Microsoft’s commercial cloud divisions, including cloud services sales, were $ 40.9 billion, an increase of 21 % year -on -year, but Wall Street was less than $ 41.1 billion. Microsoft’s intelligent cloud business, including the Azure platform, was $ 25.5 billion. The analyst in Wall Street was expecting $ 25.8 billion.
Microsoft’s shares have been closed 1.09 % on Wednesday, lowering 3.5 % in front of the market, despite the powerful results.
When Microsoft called the company’s results, Microsoft stated that the next quarterly federation of intelligent cloud revenue would last $ 25.9 billion to $ 26.2 billion, and the shares decreased. Microsoft’s second quarter result was in line with Wall Street’s expectations or exceeded Wall Street forecasts, but our current quarterly earnings forecasts did not meet the expectations.
Wall Street also continues to handle the deep -shaku effects of AI sector and Silicon Valley’s high -techtitan. Deepseek in China has confused the high -texcector by training AI models at a lower cost, lower cost, lower cost than leading AI chips from American rivals such as Openai and Google.
Microsoft is planning to spend $ 80 billion in the AI data center in 2025, investing a lot in artificial intelligence (AI). Investors are wondering if other high -tech gifts such as Microsoft, Google and Openai are wisely spending AI budgets.
According to NIVAMA’s survey, “Microsoft’s growth has accelerated consistently in the Azure business for the sixth consecutive quarter after deceleration for more than six quarters. It is a good precaution for the 2016 IT Service Company, which has reached 13 % of the growth. , The discretionary spending of IT services after FY26 will be revived.
Microsoft’s AI business is a business that investors focus. “We are innovating throughout the Tech Stack, and have locked the entire ROI of AI and have gained a major opportunity in the future. Satya Nadella, chairman of Microsoft, Satya Nadella. I say like.
Despite Microsoft’s great benefits from the AI explosion, its stock price has not been able to keep up with competition. As of Monday, Microsoft’s shares have increased only 10 % in the last 12 months, compared to the 50 % increase in Amazon and Google, respectively.