The stock of Microsoft Corporation (NASDAQ:MSFT) reached an all-time high in after-hours trading on Thursday after the company posted better than anticipated results. In the three months till September, their profit stands at $4.7 billion. Overall revenue of the business has also increased in this quarter. This is impressive, as the business revenue was down in each of the last five quarters.
Both the revenues and profits are up, thanks to the success of the Azure service of this Washington-based technology giant. Revenues from Microsoft Azure are up by 116 percent in this quarter. This is way beyond the market expectation.
The Stock Reaches Record High
It sparked a 6 percent rise in the stock’s price as it traded at $60.77. The previous high of Microsoft was way back in December 1999 when the stock reached $59.97.
That was during the dot-com boom, and Bill Gates was still the chief executive. Steve Ballmer took over shortly after that boom. When Satya Nadella finally took over from Ballmer in 2014, the stock was trading below $37. In these last two years, the business has focused on cloud-based services, even as the PC sales have slowed down.
Instead of focusing on their traditional products like Office software and the Windows operating system, Microsoft has tried to prioritize mobile and cloud computing. This shift in the business line has clearly paid off, as is evident by this impressive result. More and more businesses and individuals are increasingly accessing storage, software, database, and server services provided over the internet.
Microsoft, Second Behind Amazon
Currently, Microsoft (NASDAQ:MSFT) ranks second in on-demand data storage facility and computing power over the internet, behind Amazon (NASDAQ:AMZN). A survey carried out by the Synergy Research Group reveals that Amazon, the pioneers, enjoys a big lead in this market with a 31 percent market share.
Microsoft Azure, on the other hand, has 11 percent of the market. But it is growing.
In the last few months, the company has invested a lot of money in building data centers around the world so that they can handle the cloud-computing traffic. In just the first quarter, Microsoft has spent $2.3 billion. Nadella feels that this is beginning to pay off.
However, the revenue from Microsoft Xbox, its gaming console, is down, even though more people are now playing online. Last year this was 39 million. Now it is 47 million.