Microsoft has become one of the world's most valuable companies as it has grabbed the market share in the developing market of cloud computing, and bringing out the services such as Teams Collaboration and LinkedIn social network. Microsoft has worth close to $2 trillion until today. On Tuesday, Microsoft Corp beat profit estimates and met analyst’s quarterly sales expectation. Meanwhile Microsoft Corp. suffered a slight fall in the shares reflecting some one-off benefits skepticism in the results. Microsoft is expecting a high hope after year-long rally. By grabbing the highest market share in the cloud computing and inventing services like team collaboration and LinkedIn Social Network, Microsoft, a Redmond, Washington Company has come up with the number one company in the world even after a 50% stock run up over the past year.
During the ongoing pandemic situation, the services of Microsoft did not stop and were still ongoing. People working from home bought new laptops and PC’s having windows Microsoft operating system and video game business. Microsoft Azure cloud service had a growth of 50% in the quarter and is closing ground on market-share leader Amazon Web Services. Microsoft net income for the third quarter which ended 31st March increased by 44% on a year ago to $15.5 Billion. The adjusted earning per share were $1.95 per share, while the Revenue per share were $41.7 Billion. These numbers were above the estimated number by the analyst, according to the data from Refinitiv.
On the other hand, Microsoft suffered a bit in the prices of share. The share fell around 2.5%, giving some deeper losses. The executives of Microsoft gave a better than expectation forecast, in a conference call with the investors. Nicholas Hyett, who is an equity analyst at Hargreaves Lansdown said that Microsoft third quarter number boosted due to the One-off tax and currency advantages, which is why the market is not up to the expectation beating the numbers that were expected by Microsoft. $62 million favorable tax benefit from court ruling in India has been included by Net Profit. Microsoft sales of its commercial cloud including the Azure service and cloud-based version of its office software increased by 33% rounding about $17.7 billion. There is always a danger in trading on the kind of valuation Microsoft enjoys.
Even a little disappointment and the market will never spare you. There has been a considerable increase of 15% users in the Business version of Office 365 and the dynamic 365 customer management sale rose by 45%, which competes with the Salesforce.com. Microsoft has witnessed the fourth consecutive quarter growth of 15% in the seat on a very large base. Microsoft has started investing double on the cloud base software and is planning to buy artificial intelligence software firm Nuance Communications Inc. for $16 billion this month. Refinitiv Data said that, Microsoft's personal computing unit which includes Xbox gaming console, and its Windows operating system had a sale of 13.0 billion, which was much higher than what was expected by the analyst $12.57. Sales of Windows to the PC makers also rose by 10%, which was just 1% in the earlier quarter.