Firm’s earnings were up 15% year-on-year, but Azure’s lower returns resulted in share prices falling by as much as 7%
Microsoft outperformed analyst predictions in its latest quarterly earnings report, revealing on Tuesday that its revenue was up 15% year-over-year. But growth of the company’s closely watched Azure cloud computing services failed to meet expectations and shares in Microsoft fell as much as 7% in after-hours trading.
The company was expected to report steady growth in its fourth quarter earnings report, mostly on the back of its cloud services. Revenue from those services grew 29%, lower than the 30% to 31% that analysts predicted, resulting in a sell-off that exacerbates big tech’s recent market woes.
In Microsoft’s earnings report, Satya Nadella, the CEO, sought to bolster confidence in the company’s performance.
