Strong

Optimism

<div class="textg" style="text-align: justify; font-weight: lighter; line-height: 1.3em; font-size: 15px; border-radius: 3px; color: #80909a; padding: 10px; background-color: #F4F6F9; margin-bottom: 15px;">
 Neither the author, Ruholamin Haqshanas, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noreferrer noopener" class="deco-link">website policy</a>&nbsp;prior to making financial decisions.
</div> 
<p class="has-drop-cap">Microsoft shares have jumped more than 8% in pre-market trading as the tech giant beat estimates on&nbsp;<a href="https://news.microsoft.com/2023/04/25/microsoft-cloud-strength-drives-third-quarter-results-5/" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">quarterly revenue</a>&nbsp;guidance. The company has been making headlines with its&nbsp;<a href="https://tokenist.com/microsoft-shifts-focus-to-ai-terminates-metaverse-division/" rel="dofollow" class="deco-link">bold bet on OpenAI</a>, the firm behind the popular generative AI chatbot ChatGPT.&nbsp;</p> 
<h3 id="microsoft-revenue-and-profit-top-estimates">Microsoft Revenue and Profit Top Estimates</h3> 
<p>On Tuesday, Microsoft released the fiscal year 2023 third-quarter financial results, which exceeded analysts’ predictions. The strong results were driven by growth in its cloud computing and Office productivity software businesses, and the company said AI products were stimulating sales.</p> 
<p>Microsoft reported $52.9 billion in revenue for the fiscal third quarter, up by 7%. The figure exceeds the average analyst estimate of $51.02 billion, according to Refinitiv. Most Microsoft sales still come from selling customers software and cloud computing services.</p> 
<p>Microsoft’s Intelligent Cloud business segment, which includes the Azure public cloud, Enterprise Services, SQL Server, and Windows Server, generated $22.08 billion in revenue. That figure is up by 17% and beat the $21.94 billion consensus among analysts surveyed by StreetAccount.</p> 
<p>The company detailed that its cloud business Azure growth was 27% in the latest reported quarter, beating analyst expectations for 26.6% growth. However, growth from Azure and other cloud services still slowed from 31% in the prior quarter.&nbsp;</p> 
<p>“Focused execution by our sales teams and partners in this dynamic environment resulted in Microsoft Cloud revenue of $28.5 billion, up 22% (up 25% in constant currency) year-over-year,” said Amy Hood, executive vice president, and chief financial officer of Microsoft.</p> 
<p>Revenue in the Productivity and Business Process segment, which contains Dynamics, LinkedIn, and Office, reached $17.52 billion in the latest reported quarter, up about 11% and above the StreetAccount consensus of $17.05 billion.&nbsp;</p> 
<h3 id="microsoft-predicts-higher-revenue-for-fiscal-q4-amid-ai-optimism">Microsoft Predicts Higher Revenue for Fiscal Q4 Amid AI Optimism</h3> 
<p>During a conference call with analysts, Microsoft finance chief Amy Hood called for $54.85 billion to $55.85 billion in revenue for the fiscal fourth quarter, CNBC&nbsp;<a href="https://www.cnbc.com/2023/04/25/microsoft-msft-q3-earnings-report-2023.html" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">reported</a>. The middle of the range, at $55.35 billion, suggests a 6.7% growth and beats the $54.84 billion consensus among analysts surveyed by Refinitiv.&nbsp;</p> 
<p>Hood reportedly attributed a portion of the increased revenue to AI. “As with any significant platform shift, it starts with innovation, and we’re excited about the early feedback and demand signals from the AI capabilities we’ve announced to date,” she said.&nbsp;</p> 
<blockquote class="wp-block-quote"> 
 <p>“We will continue to invest in our cloud infrastructure, particularly AI-related spend, as we scale to the growing demand driven by customer transformation. And we expect the resulting revenue to grow over time.”</p> 
</blockquote> 
<div class="cta-referral"> 
 <img src="https://tokenist.com/wp-content/themes/thetokenist/assets/img/del/cta-referral-1.png" alt="" class="cta-referral__img" loading="lazy" decoding="async"> 
 <div class="cta-referral__text"> 
  <p>Join our&nbsp;<a href="https://t.me/thetokenist" target="_blank" rel="noreferrer noopener nofollow">Telegram group</a>&nbsp;and never miss a breaking digital asset story.</p> 
 </div> 
</div> 
<h3 id="microsoft-continues-ai-push">Microsoft Continues AI Push</h3> 
<p>In January, the tech giant announced a new multibillion-dollar&nbsp;<a href="https://tokenist.com/how-vc-funding-is-shifting-from-crypto-to-ai/" rel="dofollow" class="deco-link">investment in OpenAI</a>. While the company did not provide a specific dollar amount, reports claimed Microsoft intended to invest as much as $10 billion.&nbsp;</p> 
<p>Microsoft has already created some AI-powered experiences thanks to the partnership. These include a new version of its Bing search engine that uses AI to respond to prompts and enhancements to the Microsoft 365 productivity software.</p> 
<p>Bing has 100 million daily users and has seen downloads jump since the addition of AI features, Chief Executive Satya Nadella said. Specifically, he claimed that “daily installs of the Bing mobile app have grown [four times] since launch.”</p> 
<p>The CEO added that Microsoft has more than 2,500 customers using its Azure OpenAI service, which became generally available in January and had GPT-4 incorporated in March.</p> 
<blockquote class="wp-block-quote"> 
 <p>“We have the most powerful AI infrastructure, and it’s being used by our partner, OpenAI, as well as NVIDIA and leading AI startups like Adept and Inflection to train large models. Our Azure OpenAI Service brings together advanced models, including ChatGPT and GPT-4, with the enterprise capabilities of Azure.”</p> 
</blockquote> 
<p>Nadella also called Microsoft 365 Copilot released last month the “future of work.” The company described this new program as an AI chatbot assistant that works alongside emails, documents, meetings, and the new Business Chat service.</p> 
<p>OpenAI is one of the top three AI labs in the world, according to&nbsp;<a href="https://www.cnbc.com/2021/01/21/deepmind-openai-fair-ai-researchers-rank-the-top-ai-labs-worldwide.html" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">AI researchers</a>. The company has developed game-playing AI software that can beat humans at video games such as Dota 2, and its GPT-4 is arguably the most powerful AI model available so far.&nbsp;</p> 
<p>Meanwhile, Microsoft shares are currently up 8.2% in pre-market trading amid solid quarterly performance. The company’s shares are also up around 15% YTD, while the S&amp;P 500 index is up 6% over the same period.</p> 
<div class="cta-sub js__cta-sub"> 
 <div class="cta-sub__start" data-step="1"> 
  <div class="cta-sub__title">
   <strong>Finance is changing.</strong>
  </div> 
  <div class="cta-sub__subtitle">
   Learn how, with Five Minute Finance.
  </div> 
  <div class="cta-sub__excerpt">
   A weekly newsletter that covers the big trends in FinTech and Decentralized Finance.
  </div> <button type="button" class="btn">Try it out (for free)</button> 
 </div> 
 <div class="cta-sub__form" data-step="2" style="display: none;"> 
  <script type="text/javascript" src="https://app.getresponse.com/view_webform_v2.js?u=QcLhh&amp;webforms_id=hpcwd"></script> 
 </div> 
 <div class="cta-sub__result" data-step="3" style="display: none;"> 
  <div class="cta-sub__title">
   Awesome
  </div> 
  <div class="cta-sub__caption">
   You’ve subscribed.
  </div> 
  <div class="cta-sub__greeting">
   You’re well on your way to being in the know.
  </div> 
 </div> 
</div> 
<p><strong><em>Do you think Microsoft’s bet on AI is already paying off? Let us know in the comments below.&nbsp;</em></strong></p> 
<p>The post <a rel="nofollow" href="https://tokenist.com/microsoft-up-8-2-premarket-on-strong-earnings-will-continue-ai-push/">Microsoft Up 8.2% Premarket On Strong Earnings, Will Continue AI Push</a> appeared first on <a rel="nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Microsoft Up 8.2% Premarket On Strong Earnings, Will Continue AI Push

Tabla de contenidos

TokenInsight

Otros artículos publicados el 26 abr 2023

AI GameToEarn Opens Whitelist Application for $100,000 Reward Opportunity

Transfer All Your NFTs at Once with This Simple Hack

Regulatory forced Kraken exits make up the majority of ETH principal withdrawals

Bitcoin Price Jumps in the Wake of First Republic Bank Crash

Chinese Yuan gains ground in cross-border payments, US Dollar share declines

Decentralized Autonomous Organizations: The Brave New Frontier of Governance

¡Únete a nuestro boletín gratuito para recibir actualizaciones diarias de criptografía!