Microsoft Beats Expectations With $18.8bn Profit

Microsoft reported a profit of $18.8bn for the last three months of 2021, ahead of analysts expectations, but its share price initially slumped over 5% after another rocky day on Wall Street.

The Seattle-based software giant reported revenues of $51.7bn, an increase of 20% compared to the same period last year and ahead of expectations. But the news was not enough to impress investors who appear to have soured on the tech sector after a historic boom in share prices during the pandemic.

Microsoft is the first of the biggest US tech companies to report quarterly earnings with Apple, Amazon, Meta and Alphabet to come. The reports are being closely watched after Netflix

Since Netflix’s fall, stock markets have gyrated wildly. Investors are concerned about the Federal Reserve’s plans to raise interest rates and escalating tensions between Russia and Ukraine.

Microsoft’s cloud computing business benefitted from the shift online during the pandemic as Covid-19 closed down offices across the world. Satya Nadella, chairman and chief executive officer of Microsoft, said he expected the trend to continue.