Microsoft’s latest report has paved the way for cloud-based services in recent years. Overall, product-based revenue was stable at $ 15.8 billion a year ago, but services grew 23% to $ 21.4 billion. It is supported by the fast-growing business video conferencing tool Teams to AI systems with Azure Cloud Jaguar Notes. By further dividing Microsoft into three reporting segments, productivity and business processes increased 11% year-over-year to $ 12.3 billion, with Office 365 and related subscriptions and revenue from LinkedIn up 16%.
Azure’s public cloud computing business grew 20% year-on-year to $ 13 billion. Personal computing grew 6% year-over-year to $ 11.8 billion, Windows OS revenues fell 5%, and Xbox and Surface revenues increased 30% and 37% respectively. With the advent of digital workplaces, companies and institutions around the world are making decisions about the communication tools that will affect their organizations over the years. COVID-19 hasn’t just changed the speed and scope of our digitization.
This changes the way information is created and shared and how it interacts with other people and teams. These are permanent changes. Despite this good performance, the shares are trading before 30 times their estimated value per year. This is the highest valuation of stock prices since 2002 following the collapse of the tech bubble in the late 1990s. The high valuations reflect that much of this good news has already been etched into the price.
NASDAQ MSFT is in a good position to weather the storm of COVID-19, but the uncertainties created by the coronavirus pandemic make it difficult for corporate tech companies to predict how they will pay for their trip in this disastrous year. It’s almost impossible. Consumer companies like Apple and Amazon are facing difficult but more understandable challenges in terms of consumer demand, but the long-term impact of the economic shutdown required by the severity of this outbreak. Evaluation takes time.
Financial strength of MSFT
Microsoft paid dividends ($ 3.86 billion in the previous quarter, or 1.1% annual interest at the time of this writing) and bought stock ($ 6.74 billion) along with sustained sales and growth of profits. We continue to give enough money back to our shareholders. As of September 2020, cash and short-term equivalents were $ 138 billion and debt only $ 63.6 billion, but with some of the deepest pockets. Nadella’s approach was a great success. Since Nadella took over the lead, Microsoft’s share has more than quintupled. Microsoft’s stock has passed the Golden Cross since March 15, 2019. The weekly chart has been mostly positive after the first week of April. You can get more information from https://www.webull.com/income-statement/nasdaq-msft before investing.
Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.