Microsoft Falls As Results Fail to Sustain Lofty Valuation

By Dhirendra Tripathi 

The stock has risen over 70% since the pandemic started, despite already having a valuation over $1 trillion.  At Monday’s close, it traded at over 35 times 2020 earnings, a multiple more usually associated with small, fast-growing startups.

The results nonetheless showed growth across all the company’s segments including its Windows platform, cloud services, LinkedIn, XBox, Search and Surface.  

Net income was $15.5 billion, higher by 44%. Diluted earnings per share were $2.03, rising 45%. 

LinkedIn revenues rose 25% in the quarter. For the full year, advertising revenues at the online job and social media platform for professionals topped $3 billion.

Server products and cloud services revenues rose 26% during the quarter, driven by 50% growth in revenue at Azure. 

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