Categories: Business

Microsoft Shares Hit All-Time High Following Focus On Cloud Computing

Microsoft’s shares have hit an all-time high after the company posted better-than-expected quarterly profits.

Its focus on cloud computing helped the software giant to post a $4.7 billion profit for Q3 of 2016.

Microsoft CEO Satya Nadella has focused on building the company’s expertise in cloud-based services amid slowing PC sales.

Shares rose 6% to $60.73 in after-hours trading.

The previous high was $59.97 in December 1999, close to the peak of the dot-com boom, shortly before Steve Ballmer replaced Bill Gates as CEO.

When Satya Nadella succeeded Steve Ballmer in 2014, Microsoft’s shares were trading below $37.

Investor confidence in Microsoft has been restored by focusing on mobile and cloud computing rather than its traditional products such as the Windows operating system and Office software.

Individuals and businesses are increasingly accessing computing services such as servers, databases, software and storage that are provided over the internet (“the cloud”).

Satya Nadella said the changing business environment meant this was paying off.

“It’s not just the Silicon Valley startups anymore; it is the core enterprise that is also becoming a digital company. And we are well-positioned to serve them,” he said.

Revenue from Microsoft’s Office 365 cloud service increased 8% in the quarter while revenue from its Surface tablet – pitched as a rival to the iPad – rose 38%.

While revenue from its flagship Xbox – Microsoft’s games console – fell, the number of people playing online rose to 47 million from 39 million a year.

Clyde K. Valle

Clyde is a business graduate interested in writing about latest news in politics and business. He enjoys writing and is about to publish his first book. He’s a pet lover and likes to spend time with family. When the time allows he likes to go fishing waiting for the muse to come.

Recent Posts

Donald Trump and Elon Musk Celebrate Election Victory at UFC 309

Image source: Wikimedia Commons President-elect Donald Trump celebrated his election victory at the Ultimate Fighting…

5 days ago

White House 2024: Donald Trump Wins, Kamala Harris Calls Him to Concede Election

Millions of voters across the US chose to return Donald Trump to the White House…

2 weeks ago

Who Won? Donald Trump Declares Victory as He Addresses Jubilant Supporters in Florida

Donald Trump declares victory in the US election as he addresses jubilant supporters in Florida.…

2 weeks ago

Stocks Soaring as Donald Trump Closes in on US Victory

Stocks around the world are rising as Donald Trump appears to be on the cusp…

2 weeks ago

Who Won? Kamala Harris Cancels Election Night Party as Path to Victory Narrows

Donald Trump has won Pennsylvania, North Carolina and Georgia and taken a lead over Kamala…

2 weeks ago

Quincy Jones Dead at 91

Quincy Jones, the celebrated musician and producer who worked with Michael Jackson, Frank Sinatra, Ray…

2 weeks ago