Microsoft Shares Drop as Azure Cloud-Services Sales Slow
- Investors were looking for stronger growth in cloud unit
- Overall sales rose 13% as subscription software remains strong
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Microsoft Corp. reported slowing growth in its Azure cloud-computing business, failing to match lofty investor predictions for a continued boom in demand for internet-based services during the coronavirus outbreak.
Azure revenue rose 47% in the quarter ended June 30, missing analysts’ predictions for a 49% gain and notably lower than the 59% jump of the prior quarter. Shares slipped about 2.4% in extended trading. Overall, sales rose 13% to $38 billion, the software maker said Wednesday in a statement. Analysts polled by Bloomberg on average estimated $36.5 billion.