Microsoft Corporation [NASDAQ: MSFT] traded in positive territory in Wednesday’s trading session. It closed the day with gains of 0.64%. In pre-market trading it is still bullish and is up by about 0.81%. This follows positive numbers for the quarter ending 30th September 2019. The company announced that profits rose to roughly $1.38 per share, beating analyst expectations of around $1.24.
Revenues were also up by about 14% to hit $33.1 billion against analyst expectations of $32.1 billion. The company’s revenues and profits were mainly boosted by strong demand for Azure, the company’s cloud computing platform.
The company has in the past 5-years invested heavily in building up its cloud business. Through this platform, Microsoft saves clients the need to buy and run their own hardware, hence saving on costs. In terms of revenue contributions, Azure cloud revenues increased by about 59%. While it is a slight decline in growth from the previous quarter, when revenues from the cloud business rose by 64%, the company has been working on improving its margins and making more from azure customers.
Besides positive figures from the cloud business, the company recorded growth in Office 365. This is also part of Microsoft’s cloud business and its revenues rose by roughly 25%. The company’s strengthening cloud business already has analysts predicting that Microsoft will possibly record similarly strong figures in the next quarter. For instance, Morgan Stanley projects that commercial cloud sales will rise in the coming quarters and drive up margins from Microsoft’s cloud business.
Looking at its price action yesterday, Microsoft traded between a low of $135.61 and a high of $137.45 before closing the day at $137.24. MSFT traded 31,380,309 million shares yesterday. Microsoft is currently trading in a some what of a bullish channel.
About Microsoft Corporation
Microsoft is a technology company that offers software services all across the world. Some of its services include Office 365, Skype and One Drive among many others. The company has its headquarters in Redmond, Washington.