Microsoft's financial results for Q4 FY2024 showed strong growth overall, with revenues increasing to $64.73 billion. However, concerns arose due to the intelligent cloud sector not meeting expectations, highlighting a potential vulnerability in its competitive strategy.
Although Azure's growth was 29%, it fell short of the 31% expected by analysts, prompting worries about Microsoft's ability to sustain momentum in the cloud market. This could impact investment sentiment going forward.
In addition to the cloud, other sectors like Commercial Office and Xbox reported significant growth, with the latter benefiting from the Activision acquisition. Nonetheless, challenges persist in the hardware business and Bing's competitiveness against larger players.
Despite a 15% revenue increase year-over-year, a 7% decline in stock prices post-reporting reflects investor concerns about the cloud sector's growth trajectory and Microsoft’s future performance in a highly competitive landscape.
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