Microsoft Corp. (MSFT, Financial)
Microsoft’s Azure cloud platform continued to be the biggest growth driver for the company during the quarter. Microsoft is currently in second place in the cloud computing market and is growing more than twice as fast as the market leader Amazon (Gartner). The company’s balance sheet remains extremely solid as they have strong earnings and cash flow generation that will easily cover their debt obligations. Microsoft plans to invest their excess cash into creating new products such as Surface tablets and game consoles as well as improving the functionality of their cloud platform to remain competitive in the space. Management reaffirmed their full year 2020 guidance of doubledigit revenue growth and expects their cloud platform to be the main driver.
From Jeff Auxier (Trades, Portfolio)'s third-quarter 2019 commentary.
