Wed. Aug 10th, 2022
Slowing PC sales and a stronger dollar have hurt Microsoft's earnings.

Slowing PC sales and a stronger dollar have hurt Microsoft earnings.

Microsoft Corp. had lower than expected revenue in the most recent quarter. This was due to a stronger dollar, slowing sales of PC, and less advertisement spending.

Microsoft’s stock fell about 1 percent after the closing bell, with trading volumes indicating a sell-off. This year, the stock has declined by around 25%.

Microsoft also faces pressure because the dollar is stronger. This means that the company gets about half of its revenue from outside of the United States. In June, Microsoft lowered its fourth-quarter profit and revenue forecasts because of this.

The dollar index has increased by over 2% in the second quarter of this year and nearly 12% thus far, compared to a 1% fall a year earlier for the same time period.

Slowing PC sales and a stronger dollar have hurt Microsoft's earnings.

According to a recent study by Visible Alpha, Microsoft’s Azure cloud service has increased by 40% in a year, compared with analyst expectations of 43.1 percent.

Advertising income from LinkedIn, Search, and News all decreased by Microsoft.

The company’s personal computing segment earned US$14.4 billion in sales, compared with forecasts for US$14.68 billion.

According to research firm Canalys, worldwide shipments of PCs fell 15% in the second quarter owing to widespread inflation.

Because of the COVID-19 lockdowns, competition in the field has increased as more organizations attempt to migrate computing and data storage to the cloud.

Amazon’s fourth-quarter net sales rose 22% to US$51.87 billion while its fourth-quarter earnings per share increased 12% to US$3.16, according to Refinitiv IBES data. Analysts had predicted revenue of $52.44 billion on average, according to Refinitiv IBES data

During the quarter ended June 30, 2019, net income increased to US$16.74 billion, or US$,2.23 per share, from US$16.46 billion, or $2.17 per share a year earlier.

 

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By anupam

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