The Netflix (NFLX) shock is still in our bones. The analysts’ streaming darling delivered surprisingly weak numbers and a subdued outlook. As a result, Netflix shares plummeted, dealing a blow to the major indices.
Microsoft Exceeds Analysts’ Expectations
But now there is finally good news from the technology sector, which has been badly battered lately. The American software giant Microsoft (MSFT) has presented strong quarterly figures and even exceeded analysts’ expectations. Compared to the previous year, sales rose by a good 20% to $51.7 billion. At the bottom line, Microsoft earned around $18 billion. That is an increase of 21%.
Cloud Business as New Growth Driver
Microsoft is increasingly developing its cloud business as a new growth driver. For example, revenue from the Azure cloud platform increased by 46%. It’s in this area that this company is competing with Amazon for the favor of small and medium-sized companies.
New Operating System Arrives in Pandemic Age
But Microsoft has more good news to offer. The new Windows 11 operating system is especially geared toward increased learning and working from home. More than 700 million users now work with the Teams communication system.
Clear Analyst Vote for Microsoft
The majority of analysts also believe in the company’s prospects. As many as 40 out of 43 analysts recommend buying MSFT. 3 recommend holding it, and none recommend selling it. The average analyst price target is $370.
In conclusion, Microsoft has shown strength even in the crisis. The recent massive sell-off thus proves to be completely exaggerated.
