Microsoft investors unearth positive Bookings gains from FY19 Q2 earnings report

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Published onFebruary 7, 2019

published onFebruary 7, 2019

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Microsoft recentlyannounced its FY19 Q2 earningsand in doing so, took a moderate hit to its stock evaluation in after hour trading due to what investors saw as only moderate growth for the company.

The hit after the announcement resulted in a shaving of roughly $4.00 of its prior $106.38 mark, however, Microsoft’s stock has since recovered and at times, exceeded its prior earnings evaluation.

Part of the up and down nature of Microsoft’s post-earnings reviews may have something to do with investors reclaiming their knee-jerk reactions and seeing whatSeeking Alpha’s research analyst Bert Hochfeldmay have uncovered from the company’s earnings news.

According to Hochfeld, the extent of Microsoft’s actual cloud profitability was overshadowed by mitigating one-time factors, that, if revenue remains constant, should highlight the steep rise in the company’s overall cloud business.

Similar to much of the industry’s conclusive analysis, Hochfeld recognizes Microsoft’s pivot and but underneath the success of revenue generating decisions lay profitable outcomes not quite highlighted in all of the company’s earnings reports.

Microsoft has actually been able to execute that pivot and come out growing and generating cash on the other side.

I have enjoyed my ride down the Microsoft river and I will continue the journey. I can’t ignore 76% Azure growth or some of the other gaudy metrics the company has reported, particularly for Office 365 and its various flavors of Dynamics 365.

As Microsoft and Amazon continue to chew up cloud computing market share with big-name partnerships and contracts, the race to profitability will become an increasingly important metric to keep an eye on.

Kareem Anderson

Networking & Security Specialist

Kareem is a journalist from the bay area, now living in Florida. His passion for technology and content creation drives are unmatched, driving him to create well-researched articles and incredible YouTube videos.

He is always on the lookout for everything new about Microsoft, focusing on making easy-to-understand content and breaking down complex topics related to networking, Azure, cloud computing, and security.

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Kareem Anderson

Networking & Security Specialist

He is a journalist from the bay area, now living in Florida. He breaks down complex topics related to networking, Azure, cloud computing, and security

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Microsoft investors unearth positive Bookings gains from FY19 Q2 earnings report