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NEW YORK (TheStreet) -- Microsoft Corp. (MSFT) - Get Microsoft Corporation Report  shares are rallying 4.91% to $54.61 Friday morning, continuing its strong momentum from yesterday after the markets closed when the tech giant reported its latest quarterly results. 

Earnings for the second quarter of fiscal 2016 came in at 78 cents a share, exceeding Wall Street's projections of 71 cents a share and higher than last year's 70 cents a share. 

Revenue was $25.69 billion, topping estimates of $25.26 billion. A year ago, the company revenue was $26.47 billion. 

In the latest quarter, the company saw strong growth in its cloud businesses, which are running at an annual rate that is 70% higher than the year before. 

CEO Satya Nadella praised the success of the cloud stating, "Businesses everywhere are using the Microsoft Cloud as their digital platform to drive their ambitious transformation agendas."

What surprised investors even more was that despite the slowing hardware market, Microsoft's traditional business of operating systems for PCs is robust. The Windows 10 offering earlier this month was running on 200 million computers, doubling September's figures. 

In addition, revenue in its Intelligent Cloud segment rose 5% to $6.3 billion, while sales in its More Personal Computing businesses decreased by 5% to $12.7 billion. 

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Separately, TheStreet Ratings currently has a "Buy" rating on the stock with a letter grade of A.

The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, reasonable valuation levels, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: MSFT

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