Microsoft Proves Resilient Despite Inflation Uncertainty
The prospect of higher interest rates has weighed on tech stocks lately, but the software giant’s quarterly results suggest investors would do well to focus on long-term strengths.
Microsoft CEO Satya Nadella is facing a jittery stock market.
Photographer: Mark Kauzlarich/Bloomberg
Technology stocks have been gyrating lately as investors assess the effects of rising inflation, anticipated rate increases from the Federal Reserve and a possible slowdown in consumer spending. Yet Microsoft Corp.’s latest earnings underscore why the company still looks like a safe bet over the long term.
The software giant Tuesday reported another strong quarter, with revenue of $51.7 billion in the three months ended in December, up 20% compared with figures in the period a year earlier and higher than the $50.87 billion median estimate of analysts surveyed by Bloomberg. Earnings for the company’s fiscal second quarter also came in above estimates.