Microsoft Shares Down

 Microsoft Shares Down

Microsoft Shares Down By 2% After Q2 Results

Microsoft has finally announced its fiscal results for the 2nd quarter, which was above the forecasts. A closer look at Microsoft's result shows that the positivity is mainly driven by strong demand for AI.

Microsoft is a major player in the cloud computing business, which enables it to benefit immensely from the higher AI demand.

Despite the better-than-expected results, the shares of Microsoft (MSFT) declined by 2% during the trading session. This could be an indication of mere profit-taking and would send Microsoft shares back up in no time. Another scenario is that investors are not impressed with the data posted by Microsoft.

$2.77 Eps And $61.4 Billion Revenue

According to the results, Microsoft's EPS during Q2 was $2.93, while the company's revenue was around $62 billion. As per the forecast, a $2.77 EPS along with 61.14 billion revenue was expected, which means the result was only a little higher.

It appears that Azure, Microsoft's cloud business division, has driven Microsoft's recent growth. Overall, Azure posted a growth rate of 30%, which was a lot higher than the 27.5% forecast.

Overall, the growth in this sector of Microsoft is now standing at $25.88 billion, which is an increase of 20%. Similarly, the market was only expecting a number of $25.27 billion from the Q2 results.

As for the revenue generated from the business processes and productivity, an increase of 13% was recorded. As a result, the revenue from these sectors came out to be $19.25 billion.

According to Microsoft, it earned $16.89 billion in revenue from the personal computing sector, with a growth rate of 19%. According to experts, the revenue from this sector was expected to be $16.80 billion.

From the way the market has reacted to the Q2 results, it looks like the 2% decline was not justified at all. That's why there's a higher chance that the MSFT shares will likely attempt another leg higher in the next few sessions.

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