downward trends since June

A phenomenon that does not take long to reveal the implications in terms of profits and revenues for the company. According to a recent report, Microsoft planned it.

A 3% drop in shares: a shock for the company

Last Tuesday, Microsoft announces the profit of its fourth fiscal quarter which is close to $16.74 billion. In detail, this means $2.23 per share if that figure was $2.17 per share at the same time last year. Revenues increased to $51.87 billion from $46.15 billion at the same time last year. These numbers appear to be reasonable, yet the company remains in shock. The forecasts announced in fact at least $2.29 per share with an income of $52.38 billion. This is due to the recent depreciation of the dollar. This turning point was perceived as an alarm for society.

The directors of the company expressed themselves: We had anticipated certain changes in our analyses, however, the macroeconomic situation has evolved in such a way as to exceed our forecasts. This has greatly affected Microsoft’s turnover. ยป

In fact, the company’s shares were down 3% within hours of the earnings release. During the ordinary session, they were reduced to 2.7%. These actions are often played on the forecasts of the company than on the results. The company’s next conference call is scheduled for 5:30 p.m.

The pandemic had been good for Microsoft

During the 2019 health crisis, Microsoft was on a good pace. In part, thanks to Azure Cloud Computing but also to explosions in the sale of computers, and the use of its software. The fact that the confinement has pushed employees to work from home has also been positive for the company. With this, Microsoft experienced a rise of 18% of its income, therefore 198.27 billion dollars and profits reaching 18.7% with $72.74 billion.

A first drop in years

Today, this situation seems to be over. Businesses report the largest decline in consecutive years in recent years. The company then decides to reduce these actions, by dismissing a certain number of its employees.

Investors are worried about the company’s 2023 outlook. ” Computer shipments are down, the global macro-economic situation is impacting exchange rates and consumer purchasing power. All these parameters threaten Microsoft’s future results according to Morgan Stanley in the recent report.

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