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Shares of Microsoft (MSFT - Free Report) had surged 1.5% through mid-afternoon trading on Monday to inch close to their all-time high. The question is what had investors so excited a few weeks after the tech giant reported better-than-expected quarterly financial results.
Cloud Computing
CEO Satya Nadella pointed directly to his company’s growing cloud computing business as a major reason for Microsoft’s success on the company’s third quarter earnings call. Microsoft’s top line numbers helped prove just how important cloud is and how much the company will rely on it going forward.
Microsoft’s overall Q3 revenues surged 16% to $26.82 billion, with its Intelligent Cloud unit climbing 17% to reach $7.89 billion. This topped our exclusive non-financial metrics consensus estimate. Investors should also note that Microsoft’s Azure cloud division skyrocketed 93%.
On Monday, Microsoft’s chief executive doubled down on his commitment to cloud computing and noted that the company plans to compete directly against fellow industry giants.
Nadella said in a CNBC interview that he thinks consumer trust will lift Microsoft’s cloud offerings ahead of Amazon (AMZN - Free Report) and Google parent Alphabet (GOOGL - Free Report) . This comes at a time when many consumers and investors have become increasingly aware of privacy concerns and data security, sparked by Facebook’s Cambridge Analytica scandal.
Nadella also noted that both Google and Amazon utilize revenue from their advertising and retail businesses to support their cloud ventures. The CEO claimed that this might run against the interests of some of Google and Amazon’s business customers.
Microsoft Build 2018
Microsoft also kicked off its Build conference on Monday. The three-day conference features a ton of keynote speakers and will help the company share its goals for the future.
So far, the company announced its new Visual Studio IntelliCode, which is designed to improve “everyday software development” using Microsoft’s artificial intelligence technology. The company also noted that it is the largest single corporate contributor to open source on Github. This is something that could become even more important going forward as Microsoft tries to further democratize the internet.
Microsoft also explained more of its plans to combine Microsoft 365 and Cortana to improve meetings. Overall, the company detailed its continued push to utilize technology—especially AI—in order to enhance peoples’ lives.
The tech power’s main focus seems to be on offering greater access to technology, even diving into its plans to help people with disabilities. “It’s not really about adding more screens or grabbing more screen time,” Nadella said at Microsoft Build. “It’s about truly figuring out how to empower more people and more organizations.”
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Why Microsoft (MSFT) Stock Popped Today
Shares of Microsoft (MSFT - Free Report) had surged 1.5% through mid-afternoon trading on Monday to inch close to their all-time high. The question is what had investors so excited a few weeks after the tech giant reported better-than-expected quarterly financial results.
Cloud Computing
CEO Satya Nadella pointed directly to his company’s growing cloud computing business as a major reason for Microsoft’s success on the company’s third quarter earnings call. Microsoft’s top line numbers helped prove just how important cloud is and how much the company will rely on it going forward.
Microsoft’s overall Q3 revenues surged 16% to $26.82 billion, with its Intelligent Cloud unit climbing 17% to reach $7.89 billion. This topped our exclusive non-financial metrics consensus estimate. Investors should also note that Microsoft’s Azure cloud division skyrocketed 93%.
On Monday, Microsoft’s chief executive doubled down on his commitment to cloud computing and noted that the company plans to compete directly against fellow industry giants.
Nadella said in a CNBC interview that he thinks consumer trust will lift Microsoft’s cloud offerings ahead of Amazon (AMZN - Free Report) and Google parent Alphabet (GOOGL - Free Report) . This comes at a time when many consumers and investors have become increasingly aware of privacy concerns and data security, sparked by Facebook’s Cambridge Analytica scandal.
Nadella also noted that both Google and Amazon utilize revenue from their advertising and retail businesses to support their cloud ventures. The CEO claimed that this might run against the interests of some of Google and Amazon’s business customers.
Microsoft Build 2018
Microsoft also kicked off its Build conference on Monday. The three-day conference features a ton of keynote speakers and will help the company share its goals for the future.
So far, the company announced its new Visual Studio IntelliCode, which is designed to improve “everyday software development” using Microsoft’s artificial intelligence technology. The company also noted that it is the largest single corporate contributor to open source on Github. This is something that could become even more important going forward as Microsoft tries to further democratize the internet.
Microsoft also explained more of its plans to combine Microsoft 365 and Cortana to improve meetings. Overall, the company detailed its continued push to utilize technology—especially AI—in order to enhance peoples’ lives.
The tech power’s main focus seems to be on offering greater access to technology, even diving into its plans to help people with disabilities. “It’s not really about adding more screens or grabbing more screen time,” Nadella said at Microsoft Build. “It’s about truly figuring out how to empower more people and more organizations.”
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>