Should Microsoft Investors Fret Over Azure’s Slowing Growth?
Microsoft's (NASDAQ: MSFT) stock recently dipped after the tech giant reported its fourth-quarter earnings, even though its headline numbers beat Wall Street's estimates.
Microsoft's revenue rose 13% annually to $38 billion, beating expectations by $1.5 billion. Its adjusted earnings grew 7% to $1.46 per share, also clearing estimates by nine cents. However, three issues likely sparked some profit-taking after the stock's near-50% rally over the past 12 months.
First, its 6% year-over-year revenue growth in its productivity and business processes segment slightly missed expectations for 8% growth. Second, its first-quarter guidance for the segment, at 5% to 7% annual sales growth, also missed the consensus forecast for 9% growth. Finally, Azure's revenue rose 50% annually in constant currency terms, but that marked a significant slowdown from previous quarters.
Source Fool.com
