This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Microsoft Stalls in Post-Earnings Trading: What Wall Street's Saying

Stocks in this article: MSFT

NEW YORK (TheStreet) –– Microsoft (MSFT - Get Report) shares closed flat on Wednesday after Tuesday's quarterly report beat revenue expectations but missed on the bottom line.

In its fiscal fourth quarter, Microsoft reported 55 cents per share on revenue of $23.4 billion, an 18% increase from a year earlier. Analysts polled by Thomson Reuters expected earnings of 60 cents per share on $22.99 billion in revenue. Two billion dollars in revenue came from the company’s Nokia acquisition. Revenue from Microsoft’s Bing search engine, which now holds a 19% US market share, grew 40% year-over-year. In commercial cloud computing, one of the most important parts of CEO Satya Nadella’s turnaround plan, revenue grew 147%.

Wall Street, however, was largely unmoved by the numbers: Microsoft stock rose only 0.1% on Wednesday, closing at $44.87. Analysts were bullish going into the report; for example, Goldman Sachs analyst Heather Bellini wrote that Nadella was planning “exactly the type of reimagining that must occur for Microsoft to thrive in the mobile-first world.”

Why Satya Nadella's Vision Is More Important Than Microsoft's Earnings

Microsoft's Job Cuts Are Finally Getting the Company to Think Straight

Apple, Microsoft Earnings Solid: Tech Winners & Losers

Microsoft is at a turning point, with Nadella planning to reposition the company to become a leader in cloud computing. "Beyond back-end cloud infrastructure, our cloud will also enable richer employee experiences," Nadella wrote in a recent email to all Microsoft employees. The company’s passion, he wrote, is to “enable people to thrive in this mobile-first and cloud-first world.” This vision for Microsoft required a massive layoff of 18,000 employees, the largest in the company’s history.

Here’s what a few analysts on Wall Street had to say about the results.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs