Microsoft up on sales jump even as market falls

Microsoft's big bet on the cloud may have just helped it rise above broader market jitters.Microsoft ...

Posted: Oct 25, 2018 4:47 AM
Updated: Oct 25, 2018 4:47 AM

Microsoft's big bet on the cloud may have just helped it rise above broader market jitters.

Microsoft (MSFT) said Wednesday that its sales for the quarter ending in September topped $29 billion, up 19% from the same period a year earlier. That growth was fueled in part by the company's commercial cloud business, which soared 47% from the prior year to $8.5 billion.

Business, economy and trade

Companies

Company activities and management

Company earnings

Financial performance and reports

Financial results

Microsoft

Banking, finance and investments

Financial markets and investing

Securities trading

Stock markets

The company's stock rose as much as 4% in after hours trading Wednesday following the earnings results.

Microsoft is the first of the big five tech companies to report earnings after tech stocks briefly fell into correction territory this week. The market has suffered turbulence this month amid concerns about rising interest rates and an escalating trade war with China.

Under CEO Satya Nadella's leadership, Microsoft shook up its internal operations to prioritize the cloud and demote its legacy business, Windows. The shift placed Microsoft near the front of the rapidly growing technology segment after years of struggling to compete in smartphones and online services like search.

Microsoft overtook Google in public cloud market share in 2016 and now ranks second only to Amazon, according to data from Synergy Research Group. In an investor note this week, Wedbush analyst Daniel Ives called it a "two horse race."

And there's plenty of business to go around for both companies. Global spending on public cloud services and infrastructure is expected to hit $160 billion this year and reach $277 billion by 2021, according to projections from IDC.

"We are seeing a clear inflection point in the field as more enterprises and government agencies make this transformational move" to the cloud, Ives wrote in the note.

In recent months, Microsoft has struck deals with Volkswagen and Walmart to provide cloud services. This month, Microsoft announced that it expanded support for "highly-classified workloads" as it competes with Amazon for a $10 billion Pentagon cloud computing contract.

Microsoft's traction in this market has catapulted its stock to all-time highs this year and fueled its first ever $100 billion sales year. Morgan Stanley analysts predicted in March that cloud computing could push Microsoft to a $1 trillion market cap, joining Apple and Amazon in the race to that astronomical figure.

West Lafayette
Clear
59° wxIcon
Hi: 80° Lo: 53°
Feels Like: 59°
Kokomo
Clear
54° wxIcon
Hi: 78° Lo: 51°
Feels Like: 54°
Rensselaer
Clear
57° wxIcon
Hi: 79° Lo: 50°
Feels Like: 57°
Fowler
Clear
57° wxIcon
Hi: 78° Lo: 52°
Feels Like: 57°
Williamsport
Clear
54° wxIcon
Hi: 77° Lo: 52°
Feels Like: 54°
Crawfordsville
Clear
50° wxIcon
Hi: 78° Lo: 53°
Feels Like: 50°
Frankfort
Overcast
52° wxIcon
Hi: 79° Lo: 51°
Feels Like: 52°
Delphi
Clear
55° wxIcon
Hi: 80° Lo: 51°
Feels Like: 55°
Monticello
Clear
55° wxIcon
Hi: 81° Lo: 51°
Feels Like: 55°
Logansport
Clear
54° wxIcon
Hi: 78° Lo: 50°
Feels Like: 54°
Very Warm, Then Rainfall Potential, Followed by Much Cooler Weather
WLFI Radar
WLFI Temps
WLFI Planner

Indiana Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 113337

Reported Deaths: 3530
CountyConfirmedDeaths
Marion20936761
Lake10334319
Elkhart6438109
St. Joseph6226103
Allen6060200
Hamilton4761109
Vanderburgh349430
Hendricks2681122
Monroe251236
Tippecanoe231213
Johnson2279123
Clark215756
Porter209046
Cass19339
Delaware189561
Vigo178524
Madison161075
LaPorte138239
Floyd132161
Howard129063
Warrick122336
Kosciusko120617
Bartholomew115357
Marshall99424
Dubois95918
Boone95646
Hancock91443
Grant89733
Noble89432
Henry78125
Wayne74714
Jackson7429
Morgan70638
Shelby66629
Daviess65428
Dearborn63928
LaGrange63211
Clinton59513
Harrison56424
Putnam53810
Lawrence50628
Montgomery50521
Knox5039
Gibson4894
White48214
DeKalb46311
Decatur45739
Miami4303
Greene41935
Fayette41813
Jasper3862
Steuben3747
Scott35910
Sullivan33112
Jennings31212
Posey3090
Franklin30325
Clay2985
Orange28624
Ripley2828
Carroll27113
Wabash2628
Washington2611
Whitley2556
Starke2537
Adams2523
Wells2503
Jefferson2443
Fulton2352
Huntington2223
Spencer2223
Tipton22022
Perry21513
Randolph2097
Jay1750
Newton17211
Owen1671
Martin1640
Rush1534
Pike1411
Vermillion1260
Fountain1202
Pulaski1151
Blackford1133
Brown1033
Crawford1030
Parke961
Benton880
Ohio777
Union770
Switzerland690
Warren391
Unassigned0225

COVID-19 Important links and resources

As the spread of COVID-19, or as it's more commonly known as the coronavirus continues, this page will serve as your one-stop for the resources you need to stay informed and to keep you and your family safe. CLICK HERE

Closings related to the prevention of the COVID-19 can be found on our Closings page.

Community Events