Microsoft is headed for a record high after cloud computing drives a strong earnings beat
- Microsoft rose 3.5% in early trading Friday after fiscal fourth-quarter earnings showed a beat on both revenue and profits.
- The computing giant is headed for a record open, strengthening its position as the world's most valuable company. It had a market cap of $1.05 trillion as of Thursday's close.
- Revenue growth in the company's office-productivity products and cloud-computing service Azure drove bottom-line gains.
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Microsoft rose 3.5% in early trading Friday after handily beating Wall Street estimates for fiscal fourth-quarter earnings.The technology company announced earnings of $1.37 per share, beating estimates of $1.21. Revenue came in at $33.72 billion, topping the consensus expectation of $32.77.Advertisement
The jump in share price further reinforced Microsoft as the world's most valuable company, with a market cap of $1.05 trillion as of Thursday's close.
One of the foremost highlights in the report was cloud revenue rising 19%, with Microsoft's Azure platform growing 64% from the same period in 2018. The company saw 14% growth in its productivity-and-business-processes segment, which includes Office 365, LinkedIn, and Dynamics.Markets Insider is looking for a panel of millennial investors. If you're active in the markets, CLICK HERE to sign up.
One segment that didn't grow in the last quarter was Microsoft's gaming business, with revenue down 10% in the quarter. The company's Xbox line will see its next generation console, codenamed Project Scarlett, launch in holiday 2020.Microsoft stock traded at $140.20 per share as of 8:53 a.m. ET Friday. The price represents a year-to-date gain of about 38%. Now read more markets coverage from Markets Insider and Business Insider:Advertisement
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