Dividends and Microsoft’s shares rise as cloud computing beats revenue estimates

In late January, the company which pays the most dividends in the world reported on how it was doing. The company, not surprising is doing even better during the pandemic and there is no reason to suspect once the world changes, the company will not be doing well. Microsoft was late to cloud computing, Amazon’s AWS is the market leader, but Microsoft is growing fast. The division grew at 50% in the second quarter.

Microsoft owns other things such as Linkedin which saw a recovery in sales. The Xbox gaming business dealt with a chip shortage that has emerged, it is slowing down production of automobile vehicles, but Microsoft’s people secured enough chips that people were able to secure Xboxes.

In an article by Reuters, the cloud computing business grew at 50% beating estimates of growth at 41% and revenues reached $14.6 billion.

Revenues from Windows software and Xbox gaming consoles rose 14% to $15.1 billion beating estimates of $13.5 billion.

It is good when a big company such as Microsoft beats estimates because the pie is getting bigger, rather than stealing market share from its competitors. As the pie gets bigger, revenues can continue to grow and the world’s biggest payer of dividends will continue to pay dividends.

There are more questions than answers, till the next time – to raising questions.

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