Tech

Microsoft’s market value is about $ 1,000 billion, first-quarter profit far exceeds the forecast

Microsoft has just released a financial report for quarter 1/2019 on April 24. Shortly thereafter its stock has soared 3% after information about company revenue as well as profit margin on shares far exceeded expectations.

Microsoft CEO Satya Nadella

According to the report, the rate of return on stock is 1.14 compared to the forecasted level of 1, and the company revenue is $ 30.6 billion compared to the 29.84 billion dollars previously forecast analysts – finance company Refinitiv said.

Microsoft shares were traded at record highs (up 34% from last year). Stock prices surpassed $ 130.5 per share, making Microsoft worth over $ 1,000 billion.

Last quarter’s sales increased 14% from the previous quarter due to Microsoft’s strong shift to cloud computing, as well as large transition companies storing their data from data centers and server to Azure infrastructure of Microsoft.

Revenue of Azure cloud computing increased by 73%, although Microsoft Azure is now much smaller than rival Amazon Web Service AWS. However, this array is growing faster than the AWS recovery with the size of Azure now.

Microsoft said the next quarterly revenue would be around $ 32.2 to $ 32.9 billion. Analysts estimate this figure to be about $ 32.6 billion.

Currently, Microsoft and AWS are the two companies in the final round of competing for a $ 10 billion package for the US Department of Defense, after IBM and Oracle were eliminated.

Microsoft is also benefiting from the transition to cloud computing services. Key products such as Word and Excel are also being strongly transformed by the Office 365 cloud platform. Office 365 suite sales have increased 30% in the last quarter.

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