Tech commentator Alex Kantrowitz reassures investors that Microsoft Corporation‘s MSFT AI narrative remains strong, despite the company’s recent earnings results.
What Happened: On Wednesday, Kantrowitz commented on Microsoft’s recent earnings report during CNBC’s “Worldwide Exchange.”
“I don’t see it as time to panic,” Kantrowitz said.
“If you thought the AI story was working before yesterday, you still think it’s working today.”
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Why It Matters: Microsoft’s fourth-quarter earnings highlighted a revenue beat and a 21% YoY increase in cloud revenue, underlining the company’s strong position in the AI era. However, the company’s shares fell as cloud revenue missed forecasts and forward guidance fell short of some estimates.
Despite this, the company’s conference call was bullish, with CEO Satya Nadella and CFO Amy Hood hinting at an acceleration in Azure revenue in the second half of the year.
Microsoft’s AI-powered developer tool, Copilot, has significantly contributed to GitHub's revenue growth, with the tool being adopted by over 77,000 organizations, marking a 180% increase year-over-year. This has led to GitHub's annual revenue run rate hitting $2 billion, with Copilot accounting for over 40% of GitHub's revenue growth this year, according to Nadella.
Price Action: Microsoft stock was trading at $413.14, which is 2.32% lower than its previous day’s close, at the time of writing on Wednesday, according to Benzinga Pro.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
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