Redmond’s Microsoft sees cloud business growth, but supply strains weigh on Xbox

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Redmond’s Microsoft sees cloud business growth, but supply strains weigh on Xbox

Microsoft Corp., the Redmond, Washington-headquartered American multinational mega-cap tech conglomerate that had shifted its focus on cloud computing back in the 2014s under leadership of Chief Executive Satay Nadella, had forecasted a robust end of 2021 amid a sturdy upsurge at its cloud businesses, however, an ongoing supply chain crisis across the globe continued to weigh on a swathe of its core units ranging from surface laptops to Xbox gaming console.

Nevertheless, the Washington-based tech behemoth had handily beaten Wall Street expectation for both profits and revenues over Q1, 2022 that ended on September 30, mostly buoyed up by an uptick in the sales of its cloud-based services.

In factuality, demands of cloud-based services have been heightening up exponentially since the onset of pandemic outbreak, as a raft of business entities had turned online amid pandemic-induced restrictions. Besides, Microsoft’s upbeat first-quarter profit came forth as the tech conglomerate’s flagship cloud-computing business, Microsoft Azure, soared as much as 48 per cent, beating an analysts’ estimate of 47.5 per cent, while adding strains on market share of Google Cloud whose revenue growth in July-to-September quarter had fallen short of an analysts’ estimate of $5.2 billion.

Microsoft profit & revenues beat estimate, shares surge

On top of that, according to Microsoft Corp’s first-quarter quarterly earnings’ report for its fiscal 2022, the tech behemoth’s revenues rose by 22 per cent to $45.32 billion, handily beating an analysts’ estimate of $43.97 billion, while the tech tycoon’s net income jumped to $20.51 billion or $2.71 a share including a $3.3 billion in tax benefits.

Microsoft Corp had recorded a net earning of $2.27 a share in the latest quarter, beating Wall Street expectation of $2.07 a share, as Microsoft shares had logged a 7.24 per cent weekly percentage gain, wrapping up Friday’s Wall Street at $331.62 apiece after leapfrogging over 4 per cent shortly after the release of its Q1, 2022 quarterly earnings’ report.

On top of that, Microsoft had topped Apple Inc’s market valuation on Friday, as the Cupertino-based iPhone maker had forecasted further holocaust on sales over upcoming holiday season, largely due to an ongoing supply chain disruption and chip shortage.

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