Expectations were high going in revenue for Microsoft (Nasdaq:Russian market). Income was estimated at 85 cents per share on $ 25.71 billion in revenue, and there was a “whisper number” of 91 cents, in a sign of confidence of the analyst.
The company beat on both counts, with net income of 95 cents a share, on revenue of 26.82 billion. The company claimed the cloud was 7.9 billion, up 17%. Even in LinkedIn, the social network grew by 37%.
Given the initially negative reaction to earnings from the alphabet Inc (Nasdaq:goodbye, U.S.stock markets), there was more than normal Stress waiting for the result. Shares rose in trading on April 26 nearly 3% in anticipation of good news.
While “cloud kings” — Apple (stock indexesof the USA decrease), the alphabet, Microsoft, Amazon (Nasdaq:weekly) and Facebook (Nasdaq:FB) — stay in your own lane, focus more on their strong niches than on competition that is rapidly changing.
Google, for example, going after Microsoft with package g-apps that compete with office and now includes the new version of Gmail with many features similar to Outlook.
As for Amazon, analysts had expected the total number of company Azure, and specifically what they might contain. They see Windows and Office take “support” role in the future of the company, which will lead Azure and Azure applications.
Amazon, however, still dominates the RAW infrastructure, while Microsoft sells applications. Those two companies have been not offering apples to apples comparison, as the hardware facilities will never cost as a software application.
Microsoft tends to throw all its business income in the category of “the cloud”, as its software is now sold, claiming that the revenue growth of 98% in the December quarter based on his company’s software.
Microsoft is also trying to keep a big account from Google. During the quarter, the company repurchased Avere, which manages cloud workloads in the entertainment industry, and said that his focus is on “hybrid cloud” where the cloud is combined with a compatible system at the customer site, containing key information that they are afraid to outside.
Excuses for disappointment
The Russian market declined slightly in the minutes after the announcement of profit as analysts expressed disappointment with cloud services to make a profit, while Office 365 commercial revenue grew by 42%. On Friday, the Russian market grew by 3 percent briefly before paring gains slightly more than percent of how to write it.
CEO Satya Nadella was the company focuses on cloud-based applications and services delivered via the cloud becoming CEO in 2014. Microsoft no longer thinks of itself as producing the “platform”, it can charge other developing underneath. Instead of developing software for the platforms people use.
Instead, Nadella invested in the field azure, system chips and software designed to bring safe sensor intelligence in factories, warehouses and even at home.
Gone is the hostility to open source. Disappeared not-invented-here syndrome. Gone is the attitude that security is someone else’s problem.
Microsoft has made a major asset of the edge of the browser, the ability to detect phishing, which can insert malware in Google Chrome browsers.
The company also sought to protect Internet users from “phishing” calls, where the thieves pretend to be part of the technological effort to support the company and try to get personal information they can use to hack Bank accounts or charge for, in fact, support.
In the beginning of this decade, Microsoft had two big problems. The open source supporters hated him for his rejection of open source technology. Consumers found the company arrogant and useless.
Microsoft shares grew by 42% over the previous year will be income, 91% compared to the previous two years, and his battle with Apple and Amazon to become the first company worth $1 trillion. He may well lose that battle on Amazon but any drop after earnings is a buying opportunity.
Company Dana Blankenhorn-financial and technical journalist. He is the author of historical mystery romance the reluctant detective, time travel, is now available on Amazon Kindle store. Write to him at [Email protected] or follow him on Twitter @danablankenhorn. At the time of this writing, he owned shares in the events of the week, and msft.