Microsoft share price crash: Slowest sales growth in the last 6 years to blame?

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Microsoft December quarter results

Microsoft's net profit fell on a year on year basis, however strong revenue growth from its commercial cloud computing business helped offset worries around falling revenues from its personal computer business.

Microsoft shares had jumped about 4% after it released its results on Tuesday, January 24, during market hours, but ended the session flat. The company reported a 7% year-on-year drop in its net profit of $17.4 billion. To know more, click here.

Speaking of Microsoft’s cloud business, the personal computer maker forecast that revenue for the next quarter ie. ended March 2023, would be $21.7 billion to $22 billion, just below the analyst average forecast of $22.14 billion, according to Refinitiv. 

For the quarter ended December 2022 revenue from the cloud segment beat expectations slightly at $21.5 billion.

Following the chatbot ChatGPT's success in going viral, Microsoft's cloud business is once again in the spotlight.

The chatbot was developed by the firm OpenAI, in which Microsoft has made significant investments and which needs intensive cloud computing resources.

Microsoft also announced, layoffs affecting 10,000 employees as technology companies scatter to cut costs amid rising recession fears.

Microsoft Results: Share Price Performance

Microsoft Results: Weak Net Profit

Microsoft Results: Muted Revenue


Microsoft Results: Revenue Breakdown

Microsoft Results: Expenses Breakdown

Microsoft Results: Business Segment Highlights

Microsoft Results: Top 5 Key Points

Microsoft Results: Analyst View

Guggenheim Securities has a ‘sell’ rating on the stock with a share price target of $212.

Macquarie has a ‘neutral’ rating on the stock with a share price target of $232.

Fundamental Research Corp has a ‘buy’ rating on the stock with a share price target of $269.73.

This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.

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