Microsoft earnings remain steady as analyst cites no major surprises amid Azure constraints
Updated
Updated · MarketWatch · Apr 29
Microsoft earnings remain steady as analyst cites no major surprises amid Azure constraints
14 articles · Updated · MarketWatch · Apr 29
Evercore analyst Kirk Materne notes Microsoft's earnings were predictable due to ongoing cloud capacity constraints and Azure growth below 40%.
Materne suggests Azure guidance in the mid-30% range would be considered satisfactory, given tough year-over-year comparisons. Recent earnings also showed Xbox revenue down 5% and hardware sales declining over 30%.
Microsoft's shares dropped over 2% after cloud revenue growth met but did not exceed estimates, with investors watching rising AI competition from Google Cloud and Microsoft's reliance on OpenAI.
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