Microsoft CEO Satya Nadella giving a presentation on dreams, struggles and creativity at Tsinghua University on September 25, 2014 in Beijing, China. Nadella visited China for the first time on Thursday.
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Microsoft shares were up about 4% on Wednesday, a day after the company made the offer powerful guide for the next quarter in its latest earnings report.
The company beat analysts’ estimates for earnings and revenue, reporting adjusted earnings per share of $2.48 and revenue of $51.73 billion for its fiscal second quarter. .
Microsoft has seen continued strong growth in its cloud services business, reporting 46% revenue growth for this segment. That comes after four quarters of revenue growth of 50% or more in the sector.
While the initial deceleration may worry investors, with shares falling shortly after the report, shares turned positive in after-hours trading Tuesday after executives give instructions. Chief Financial Officer Amy Hood said Microsoft expects Azure to see continued growth in constant currency in the current quarter.
“MSFT posted another strong quarter, and while the continued deceleration in Azure growth created some initial noise in the report, these concerns were quickly addressed with management’s guidance on the Q/Q acceleration in Azure CC growth,” analyst Stifel wrote in a note on Wednesday. .
The technology sector has recently experienced a Wide sale amid concerns about rising interest rates. As of Wednesday morning, Microsoft and other big tech companies like Apple and Amazon had the most positive impact on the Nasdaq 100.
“After the 14% YTD sell-off appears overblown, we recommend that growth investors buy MSFT with a favorable risk reward,” Piper Sandler analysts wrote.
Jordan Novet of -CNBC contributed to this report.
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