Satya Nadella, Microsoft CEO, speaking on CNBC Squawk Boxa outside the World Economic Forum in Davos, Switzerland on January 2, 2025.
Gerry Miller | CNBC
Microsoft The shares fell about 5% after the issuance of weak guidelines in the quarter after the bell on Wednesday.
Software giant on top of Wall Street’s fiscal estimates of the second quarterPublishing earnings of $ 3.23 per share at $ 69.63 billion in revenue. This surpassed EPS of $ 3.11 and $ 68.78 billion forecasts analysts surveyed by LSEG.
The fall came because Microsoft’s chief Amy Hood said that the company expects to take between $ 67.7 billion and $ 68.7 billion for the current quarter, which is less than $ 69.78 billion per LSEG. The income increased by 12.3% compared to the year – the strongest growth since the mid -2023.
Microsoft also published a slowdown in the growth of its revenue from Azure and other cloud services. The segment increased by 31%, which is a drop of 33% in the previous quarter.
Many analysts on Wall Street stood by Behemoth technology Despite the disappointing guide and slowing the azure. Analyst Goldman Sachs Kash Ranggan called the company “well -positioned” to continue to benefit from adopting artificial intelligence and among the “most convincing investment capabilities” in the industry.
“Microsoft has proven that they can drive a job in the cloud, and now they have shown that they can drive the biggest AI job with a combination of high quality gene AI and Gen AI apps,” Bernstein Mark Moerdler wrote, adding that the administration should be focused on turning toward the basic azure business o ai.
Microsoft shares decreased by 2% during the session on Monday as part of the wider sale of the technological sector. Cap came while Wall Street estimated the relegation from Deepseek’s ai Models. Estimates suggest that Chinese startup has trained its open code model with a bit of cost for other competitive US products.
Executive Director Microsoft, Satya Nadella, said during an invitation to earn that the Deepseek model R1 is currently available through Github -ai Azure Azure AI Company. He will also be available at the Copilot+ PCS in the end, he said.
Other shares of technology have experienced strong gains during Thursday trading on the back of the earnings. Meta platform jumped nearly 4% on strong results, while Tesla Despite the despite Missing estimates and reporting a drop in car revenue. IBM jumped 14% on Robust results and noted gain in your software business that the demand for AI is growing.
