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By Aaron Tilley
NEW YORK (Dow Jones) – Microsoft has again released strong quarterly results that have fueled investor enthusiasm for the software giant and brought the company close to a $ 2 trillion valuation. Microsoft benefits from the fact that remote working and distance learning have become the norm for many people because of the corona pandemic. This has resulted in rapid adoption of its cloud computing services and has also boosted video game sales.
“More than a year after the start of the pandemic, the digital adoption curves are not slowing down. They are accelerating,” said Microsoft CEO Satya Nadella.
The company from Redmond, Washington increased its sales in the third quarter of the year by 19 percent to around 41.7 billion US dollars and achieved a net profit of 15.5 billion US dollars in the period from January to March. The results exceeded Wall Street’s expectations, according to Factset.
The Microsoft shares fell in aftermath trade by 3.3 percent after the share had risen slightly in the run-up to the results.
Revenues in connection with the Azure cloud service rose by 50 percent, about as much as in the December quarter. Azure became a bigger source of revenue for the company than its Windows operating system over the past year, according to Piper Sandler analyst Brent Bracelin. Microsoft is number two in the cloud business behind Amazon. The video game business was also particularly strong in the pandemic. Xbox content and services revenue rose 34 percent in the past quarter, helped by the recent launches of two new consoles, the Xbox Series X and S.
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(END) Dow Jones Newswires
April 27, 2021 5:33 PM ET (9:33 PM GMT)