The shares of this Chip designing company based in the US deal in developing advanced graphics processing units (GPUs) and AI solutions for gaming, data centers, automotive, and professional visualization applications was in focus after the company reported a 109 percent jump in net profits year on year.
Stock Movement
The share price of Microsoft closed at $422.99 and touched a day’s high of $427.23 per share on Wednesday’s trade, declining 1.17 percent from its previous close of $427.99 per share. However, the shares in after-hours show the price at $421.98 down by 0.24 percent. In the past year, the stock has delivered a 10.53 percent return underperforming the Nasdaq index in the same period.
What Happened
Recently, the US Federal Trade Commission has opened an anti-trust probe on the company which might include software licensing, cybersecurity practices, and cloud computing business.
The probe was acknowledged by the FTC Chair Lina Khan. The FTC’s scrutiny of cybersecurity incidents which include Microsoft’s products raised concerns about its market power.
The key issues include allegations that Microsoft includes licensing terms by preventing customers from moving their data from Azure (cloud computing) to other competitive platforms sources said. Microsoft Azure holds around 20 percent market share in the cloud market with Amazon Web services holding around 31 percent of the market share as of Q3 2024 as per Statista and Synergy Research Group.
About the Company
Microsoft Corporation was founded in 1975 by Bill Gates and Paul Allen. It is a leading American multinational technology company headquartered in Redmond, Washington.
They specialize in software development, particularly known for their Windows operating systems and Microsoft Office suite.
Their business model focuses on software licensing, cloud computing through Azure, and hardware products like Surface devices and Xbox consoles. Microsoft also focuses on innovation in artificial intelligence and enterprise solutions, serving both individual consumers and businesses globally.
Products and Services
They offer a range of products and services, centered around software and cloud computing. Their key offerings include the Windows operating system, Microsoft Office suite, and Microsoft 365 for productivity.
Additionally, Microsoft Azure provides cloud services such as PaaS, IaaS, and SaaS, supporting various applications and workloads.
They also develop hardware products like Surface devices and Xbox gaming consoles, alongside enterprise solutions in artificial intelligence and cybersecurity.
Financials & Ratios
Its Revenue from operations grew by 15.66 percent year on year from $211 billion ending 30th June 2023 to $245 billion ending 30th June 2024, accompanied by diluted earnings per share of $9.68 to $11.80.
The company has a current ratio of around 1.30 has a total debt to equity of around 0.33 based on the most recent quarter. They have an operating margin of 46.58 percent (TTM) and a profit margin of 35.61 percent.
Written by Santhosh S
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