Strength in Microsoft Cloud Boost Stock
Video: CNBC goes over the Microsoft earnings report as the company beats on the top and bottom line on growing strength in the Microsoft Cloud. Microsoft reported adjusted quarterly profit of 76 cents per share, eight cents a share above estimates. Revenue beat forecasts, as well, with $22.33 billion. Azure, Microsoft’s cloud business revenue grew 116% in the quarter to $6.38 billion with gross margin hitting 49%. The company also announced it is expected to finalize its acquisition of LinkedIn by second quarter fiscal 2017.
Microsoft (MSFT) gives you a 2.52% annual dividend. It has a bit high PEG ratio (Price to Earnings/Growth) of 3.19, anything with a 2.00 or lower is considered a buy but the company is making a nice transition from a software company to an enterprise company.