CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

Microsoft shares down after Q1

Software giant Microsoft disappointed the markets as its cloud business, Azure, saw a slowdown in growth, despite expanding 26%. Sales of software for personal computing fell 15%.

Microsoft Source: Bloomberg

Microsoft's fiscal first quarter (Q1) last night beat analyst expectations at the top and the bottom line despite cloud sales growth falling to 20% year-over-year (YoY), which saw shares down 5% in extended trade on the IG platform last night.

These were the numbers coming through from Microsoft's earnings per share (EPS - $2.35. Estimates had been for $2.32. So tick box there. Revenues of $50.1 billion. We've been looking for something just shy of the $50 billion level.

Share price chart

But, Microsoft warned of a marked slowdown in its cloud computing businesses. Large customers pause their spending in the face of a slowing economy and look what damage it did to shares yesterday.

You can see quite clearly in extended trade on the IG platform last night all the way down. $233.92 back into this sloping channel that we've been trading in productivity and business processes. $16.5 billion against $16.1 billion expected.

But it was the cloud business which really did spook the markets last night. This is the Azure business of Microsoft, intelligent cloud business nonetheless rising 26%. But that met estimates of $20.3 billion but sales of software to PC-makers falling 15%, leaving overall revenue from Microsoft's more personal computing division at $14.3 billion, close to forecast.

The end effect of all that was a drop for Microsoft when it closed out yesterday's session, all extended trade on the IG platform.

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