Microsoft: This Could Be A Problem

Weak guidance for quarterly revenue shows that Microsoft is not as immune to the COVID-19 economic environment as many investors originally thought.

Share prices are falling even after Microsoft posted better than expected results for the first-quarter reporting period, showing investors are focused on year-end trends as a more meaningful performance indicator.

In our view, the company’s main area of strength lies in Azure and results from the most recent reporting period indicates excellent potential for growth into 2021.