Microsoft's cloud bet pushes annual sales over $100 billion

Accuracy score :
97%

Microsoft (MSFT) said Thursday that it posted $110 billion in sales for the 2018 fiscal year ending in June, a 14% increase over the prior year. CEO Satya Nadella credited "early investments" in cloud services for the results. The company's commercial cloud business hit $6.9 billion in the last quarter, jumping 53% from the same period last year. That helped push Microsoft's overall quarterly sales to $30.1 billion, a 17% increase from a year ago. Under Nadella's leadership, Microsoft shook up internal operations to prioritize the cloud and demote its legacy business, Windows. The shift placed Microsoft near the front of rapidly growing technology segment after years of struggling to compete in smartphones and online services like search. MORE: https://money.cnn.com/2018/07/19/technology/microsoft-earnings/index.html

Facts: Estimated annual cloud revenue for 2018 is 29 billion USD, Account now accounts for 30% of Microsoft's revenue. 

 

2. Total sales for 2018 at 110 billion USD 

 

3. Amazon Cloud Revenue: $28 billion (2018), Microsoft Cloud Revenue: $29 billion (2018), Google Cloud Revenue: $4.5 billion (2018) 

 

Analysis: Great move by CEO Satya Nadella for pushing their full employee force on cloud and away from smartphones and bing.com, Smartphones was a battlefield which has no winners even if you win, Cloud is the business in the background collecting the dimes and nickels off of every Smartphone user. 

 

Conclusion:  MSFT's stock may not be a buy or sell, but Microsoft is a great company in a great position as of 2018. 

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