Microsoft's cloud business outlook slightly behind expectations

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Microsoft Corp forecast cloud revenue for the current quarter at just below Wall Street expectations, dampening some enthusiasm for its beat on quarterly profit earlier on Tuesday.

forecast cloud revenue for the current quarter at just below Wall Street expectations, dampening some enthusiasm for its beat on quarterly profit earlier on Tuesday.

In the second quarter, Microsoft's cloud services business helped offset a slump in the personal computer market. Those results will likely allay fears of a meltdown in the tech industry which hasMicrosoft said Azure cloud product revenue rose 31% in the quarter, in line with estimates compiled by Visible Alpha, while its broader Intelligent Cloud division posted revenue of $21.5 billion, versus a Wall Street consensus of $21.4 billion compiled by Refinitiv.

“Given the challenges of the current macroeconomic environment and the concerns that things could have been much worse, I think you have to consider these Microsoft earnings a reasonably positive sign for tech overall," said Bob O'Donnell of TECHnalysis Research.

 

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