Microsoft’s market capitalization exceeded the $ 1 trillion mark in the after-hours trading session on April 24, after the world’s largest software firm had an optimistic forecast about cloud computing. ).
According to Reuters, the first-quarter revenue and profit that Microsoft just published exceeded the analysts’ expectations, thanks to the sudden increase in revenue from the Windows operating system and the impressive growth maintained in the cloud segment. – the field now brings Microsoft tens of billions of dollars in revenue each year.
Microsoft’s stock price sometimes rose 4.4% in after-hours trading, reaching 130.54 USD / share, bringing the company’s market capitalization to the threshold of 1 trillion USD. Technology firm Apple currently has a market cap of $ 980 billion, behind Microsoft.
In recent months, three “giants” including Microsoft, Apple and Amazon have taken turns holding the throne of the largest US listed market capitalization company.
If calculated from the beginning of the year, Microsoft shares rose 23%. Over the past five years, Microsoft has seen a dramatic shift to reduce reliance on its former flagship product, the Windows operating system, and instead promote cloud-based services.
Azure, Microsoft’s main cloud product, competes strongly with market leader Amazon Web Services (AWS) to provide cloud capabilities for businesses.
In the first quarter of this year, Azure revenue growth reached 73%, down from 76% achieved in Q4, but still a very positive figure. Analysts predict that Azure will bring Microsoft $ 13.5 billion in fiscal 2019, with an annual growth of 75%.
Windows revenue increased by 9% compared to the same period of 2018, exceeding the forecast and is a “comeback” from a decrease of 5% in Q4.
However, Microsoft’s report has two disappointing points for investors. First, gaming revenue, including Xbox consoles, increased only 5%, compared to 8% in the previous quarter. And second, sales of Surface devices increased by 21%, compared to a 39% increase for the fourth quarter of 2018.
Microsoft’s total revenue in the quarter increased 14%, reaching $ 30.57 billion, exceeding the forecast of $ 29.84 billion that analysts made earlier.
Net profit reached US $ 8.81 billion, up 18.7% over the same period last year.
* Source: VN Economy