What investors should watch for in Microsoft's earnings: Xbox pressure on margins, cloud growth

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New for subscribers: What investors should watch for in Microsoft's earnings: Xbox pressure on margins, cloud growth. Check out CNBCPro today.

While analysts expect a lower operating margin from the segment that contains Xbox after Microsoft launched two consoles in November, one investor doesn't expect it to hurt earnings per share.

Microsoft Corporation chief executive Satya Nadella speaks during the VivaTech trade fair in Paris, on May 24, 2018.will give investors a peek at the impact of selling new video game consoles when it reports third-quarter earnings on Tuesday. Analysts expect a narrower margin for the business segment that includes gaming, but for some long-term investors, that would be all right.

 

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