Fourth Quarter Financial Results recently shared by Microsoft, Microsoft stock price dropped due to falling short in some areas. Till yesterday, there were high expectations of Microsoft results, which have also come but due to shortcomings in some areas, the price of Microsoft stock fell.
AI3 Microsoft Earnings and Revenue
- $2.95(EPS) is earning per share which Microsoft reported a little higher than the expected $2.94.
- $64.7 was Microsoft’s revenue expected was $64.5 billion.
- If we compare it to the same period last year. There is an increase in EPS is $2.69 and $56.2 billion in revenue.
AI3 Microsoft Cloud Revenue
- Microsoft cloud revenue as per their expectation is $36.8 billion.
- AI3 Microsoft cloud segment in which Azure services are counted its revenue assumption just below the expectation. It was expected to be $28.7 billion but in actually it is $28.5 billion.
Market Reaction after disclosing AI3 Microsoft fourth Quarter Financial result
- Microsoft stock dropped by more than 7% after the fourth Quarter result announced by Microsoft.
- AI3 Microsoft revenue grew by 21 % year over year even though the company missed cloud revenue expectations.
- Microsoft AI3 Cloud revenue increased by 19% compared to the previous year.
- Microsoft AI3 services added 8 % points to the growth of its Azure and other cloud services.
- Microsoft highlighted that AI services added 8 percentage points to the growth of its Azure and other cloud services, which grew by 29%.
Impact on Other Companies after Microsoft Q4 Result
- After AI3 Microsoft’s fourth financial year revenue was revealed, the impact on other companies like Meta also fell by 3% in after-hours trading.
- One week earlier Alphabet (Google’s Parent Company) revealed their result which shows an increase in cloud revenue and shows interest of investors in AI products.
Analyst Insights
- Stephen JU Analyst from UBS, per his report Google will see revenue benefits from its AI investment until early 2025.
- Karl Keirstead UBD analyst stated that Microsoft has been gaining share from competitors like Google and Amazon.
- Keirstead also pointed out that due to Microsoft’s strong position in AI3, its partners and customers shifting from other partners.
Google’s Investment in AI
- Alphabet declared its earnings report, in which CFO Ruth Porat mentioned that the main focus of the company is on AI projects in which they spent $13 billion on capital expenditure, up was $12 billion from last quarter.
Amazon Earnings report
On 1st August Amazon will reveal their earnings report.
Stock Performance of the Year
- Amazon got hiked by 23% while Google’s shares rose by 22% in the year just because of AI.
Read More
AI3 Microsoft to Announce Q4 Earnings
Hello, My name is Gurvinder Singh, born in Punjab, India, completed my Bachelor of Commerce (B.Com) degree from Panjab University. Apart from my professional pursuits, I had a keen interest in finance-related hobbies. I actively manages my investment portfolio, carefully researching and analyzing various stocks and market trends to make informed financial decisions. With a goal of financial empowerment and wealth accumulation, I dedicated to continuous learning and improvement in my financial endeavors.
