Microsoft’s stock price fell on Wednesday after the software giant’s revenue forecast for the next quarter fell short of Wall Street’s expectations.
Shares of Window-maker fell about 3% to $ 206.72 in pre-market trading at 9:07 a.m., even as its net profits jumped 30% to $ 13.9 billion, or 1.82. $ per share, during the July to September quarter.
While Microsoft’s published quarterly results beat analysts’ estimates for earnings of $ 1.54 per share, investors weren’t thrilled with its outlook for the last three months of the year, which will see the launch of its next Xbox video game console.
Microsoft expects to rake in $ 39.5 billion to $ 40.4 billion in revenue for the October-December quarter, CFO Amy Hood said. That range was lower than Wall Street’s average estimate for a forecast of $ 40.5 billion, although it would mark a jump from holiday season earnings of $ 36.9 billion last year. , according to MarketWatch.
However, forecasts indicated a continued increase in Microsoft’s business as the coronavirus pandemic sparked increased demand for its cloud computing products.
The Washington state-based tech titan’s revenue rose 12% to $ 37.2 billion in the last quarter, in part thanks to a 48% increase in revenue from Azure, its service flagship cloud.
Microsoft Teams, the workplace messaging and collaboration software, has also exploded to more than 115 million daily active users, up from 75 million in April as part of a widespread shift to remote work caused by the COVID-19 crisis.
“We are innovating across our modern technology stack to help our customers across industries improve time to value, increase agility and reduce costs,†Microsoft CEO Satya Nadella said in a statement. declaration.
With post wires
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