As economies reopen, businesses are increasingly switching to a hybrid model that allows staff to work alternately from the office and home.
The hybrid working trend is resulting in continued strength for Microsoft cloud services, including its flagship cloud offering, Azure.
“These numbers show that customers continue to turn to Microsoft as they accelerate their shift to cloud computing and the current worrisome economic environment has yet to affect the company’s main growth engine,” said Haris Anwar, senior analyst at Microsoft. Investing.com.
The company reported revenue of $49.36 billion in the third quarter, compared to $41.7 billion a year earlier. Analysts on average had expected revenue of $49.05 billion, according to Refinitiv IBES data. Net income increased to $16.73 billion, or $2.22 per share, in the quarter ended March 31, from $15.46 billion, or $2.03 per share, a year earlier. That beat analysts’ expectations of $2.19 per share.
However, “despite these results, the firm accumulates a 19.3% drop so far in 2022, although this publication is expected to slightly reverse its downward trend for the year,” Cohen SA said.
Alphabet
Unlike its competition, Alphabet, Google’s parent company missed Wall Street estimates for quarterly salesits first failure since the pandemic began, as advertisers cut spending against the backdrop of growing concerns about a global economic slowdown. The papers came to fall the after market up to 6.4%. This Wednesday, it moderates the losses up to -3%.
Alphabet reported earnings per share of $24.62, versus $25.91 expected. It also disappointed in income, with a figure of 68,010 million compared to the 68,110 expected. Much of the blame lies with YouTube’s advertising revenue, which was 6.87 billion compared to an expected figure of 7.51 billion.
“YouTube is showing that it cannot compete against the TikTok platform, which is causing the platform’s advertising agreements to fall. In this way, the firm has contracted 18.2% so far in 2022, so its price is already equals that of May 2021”, they added from Cohen.
Source: Ambito
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