Computing giant Microsoft (NASDAQ: MSFT) recently reported earnings for the fiscal first quarter of 2023, or the period ending Sept. 30, 2022. There was a lot to unpack from this report. Consumer demand in the personal computer sector has been weak for the last several quarters, and management believes this trend will continue due to cyclical trends such as inflation.
Moreover, the company’s social networking platform, LinkedIn, is experiencing a decline in advertising revenue, which isn’t entirely surprising given the overall waning demand for ad spending.
However, the beauty of a company like Microsoft is that the company has a number of different levers to generate revenue. And despite the macro environment affecting its core hardware and advertising businesses, there is one end market that seems to be resilient even during times of economic volatility. In this article, we are going to analyze Microsoft’s cloud business and how its growth should encourage long-term investors.
Do people dislike Microsoft due to the owner?