Tech Giants Are Sliding into a Correction: Microsoft
MSFT stocks
lost more than 30% off their peak prices but the company is keeping strong
positions across all business sectors. Its wide scale product line is highly
appreciated by its business clients and there are no signs that point to the
situation changing somehow in the future.
According
to the Q3 2022 earnings report the company’s revenues are up by 16%
year-on-year to $50.122 billion, while net income us up by 8% to $16,728
billion, and EPS rose by 11% due to the buybacks from the market. Strong
corporate business segment results overshoot the retail segment as business
applications such as Microsoft 365 E5 and cloud services reported growth of 15%
and 26% respectively, while the personal computing segment delivered 3% growth
year-on-year amid falling personal computer sales.
The three
major business drivers for Microsoft and from which revenue is accumulated are:
the Azure cloud computing segment, that is the second in the market after
Amazon’s AWS, advertising on LinkedIn and Bing, and gaming. Business Fortune
Insights has forecasted that the gaming industry would go up by 13.2% CAGR from
2021 to 2028 to $545.98 billion. Microsoft currently occupies 20% of this
market and may boost its share up to 27%
by 2026. So, the company has strong possibilities of delivering rising revenues
in the future.
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