Microsoft shares up on positive quarterly results
Shares jump 9.8% as vendor's cloud business makes gains
Microsoft's shares jumped by 9.8% last week after the company reported better-than-expected results for its first quarter.
This marked the ninth quarter in a row that Microsoft had beat analyst expectations in quarterly results, with the revenue growth attributed to higher demand for the vendor's cloud services. Analysts said that CEO Satya Nadella's strategy of shifting Redmond's focus away from the Windows platform was paying off.
Microsoft said that its cloud business revenue - including products such as Azure and Windows Server - rose by 8% to $5.9bn. Redmond added that it expects cloud revenue to reach around $6.2bn in the current quarter.
That said, Microsoft's revenue and profit numbers have come at a cost - Nadella recently announced a further round of cuts which will see around 1,000 employees worldwide lose their jobs. This is on top of the 7,800 jobs that Redmond said it would cull in July.
Microsoft said that the cuts reflected the company's evolving needs as it strays off the consumer hardware path it started down with Steve Ballmer, Nadella's predecessor, was in charge.
What's more, revenue for the unit that includes the Windows business fell 17% to $9.4bn, the company said. This accounted for 46% of total revenue.