Microsoft Stock ( NASDAQ:MSFT )
Microsoft Corporation ( NASDAQ:MSFT ) is one of the world’s largest and most successful technology companies, offering software licensing and sales, consumer electronics, personal computers, cloud computing services, and so on. The company’s most well-known products are the Windows operating system, the Microsoft Office Suite, Microsoft Azure, and the Xbox gaming console.
An Attractive Investment Opportunity
Microsoft stock remains an appealing investment opportunity. The company has a diverse product offering, is cutting costs with a 5% workforce restructuring, and is investing heavily in the future with a $10 billion investment in Open AI. Furthermore, the cloud computing segment remains robust, with operating income exceeding 40% and revenue growth in the high double-digit teens. Let us now examine the fiscal second quarter results .
Microsoft recorded its slowest revenue growth in more than five years during the second quarter of FYE 2023. Revenue increased by 2%, driven by its cloud computing segment, which increased by 17.8%, or $3.2 billion. Revenue growth in the personal computing segment was largely offset by declines in Windows (-27%), Devices (-39%), and Gaming (-13%).
Employee severance expenses increased by 19% due to layoffs, investments in cloud engineering, and the Nuance acquisition. Expenses for research and development increased by $1.1 billion, or 19%, due to investments in cloud engineering. As a result, operating income fell to $20.4 billion from $22.2 billion in the same period last year. Despite higher operating expenses, Microsoft maintained healthy profit and operating margins of 38.7% and 31.1%, resp...
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