Microsoft Stock Rose as Azure’s Growth Was Deemed “More Solid” Than Feared

Microsoft Stock

Microsoft Stock (NASDAQ:MSFT)

Wedbush Securities, an investment company, feels that the expansion of Azure has been “more steady” than the anxieties that have been suggested imply. Microsoft stock is scheduled to disclose its results for the fiscal second quarter following the trade closing.

Dan Ives, an analyst with an outperform recommendation on Microsoft stock, said the firm’s recent interactions with customers and partners reinforce his belief that CEO Satya Nadella and his team can weather the economic storm and emerge stronger after the crisis passes.

Ives stated in a note to clients that “although Azure growth has definitely decelerated in the field,” he believes Microsoft (NASDAQ:MSFT) should be able to meet its 37% Azure growth goal (constant currency) in the December quarter when Redmond releases results after the bell.

Ives also mentioned the belief that 90% of large deal activity for Azure and Office 365 is “still on track” going into the next two quarters, despite some “modest push-outs and downsizing” of major cloud projects. This belief was based on the fact that Ives believes that major cloud projects have experienced “modest push-outs and downsizing.”

 

Ives added, “we acknowledge that larger cloud deals from the financial vertical could start to get downsized as data center projects get curtailed in this more scrutinized IT budget backdrop.” “We acknowledge that larger cloud deals from the financial vertical could start to get downsized.”

A huge migration to the cloud is occurring from the Pentagon to civil agencies in the 202 area code, which is having the opposite effect on federal transactions, according to [Microsoft] and its cloud colleagues Amazon, Google, Oracle, and IBM.

Most market watchers believe that Microsoft (NASDAQ:MSFT) will post earnings of $2.31 per share on sales of $53.16 billion during the current quarter.

On Monday, Microsoft (NASDAQ:MSFT) announced that it had committed “multiyear, multibillion-dollar” funding to OpenAI, the company that develops ChatGPT.

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