Microsoft Corporation (MSFT,One of the largest broad-based technology providers in the world. Microsoft’s second-quarter results were driven by strong Intelligent Cloud and Productivity and Business Process revenues. Strong adoption of Office 365 commercial solutions led to increased productivity and revenue from business processes. The number of Microsoft 365 consumer subscribers increased to 78.4 million. Continued momentum in small and medium businesses, frontline worker offerings and growth in revenue per user drove the top line. Intelligent Cloud revenue was driven by growth in Azure and other cloud services. The solid adoption of Azure AI, which now has more than 53,000 customers, shows promise. We believe special mention should be made of efforts to reward shareholders through share buybacks and dividend payments. MSFT’s earnings are expected to grow 18.3% in the current fiscal year.
Shopify Inc. ,Shop,Provides a multi-tenant, cloud-based, multi-channel commerce platform for small and medium-sized businesses (SMBs). Shopify shares have outperformed the industry over the past year. Shopify is benefiting from strong growth in the merchant base, as seen in the third quarter of 2023. It is focused on winning over regular merchants based on product offerings including Shop Pay and Shop Pay installments. Solid adoption of new merchant-friendly applications is promising. Partnerships with YouTube, Twitter, Facebook, Instagram and Google are expected to expand its merchant base. Selling the logistics business to Flexport will increase profitability. Shopify has a strong balance sheet with ample liquidity. Over the past three months, the Zacks Consensus Estimate for SHOP’s full-year earnings has moved higher. This is indicative of improving analyst sentiment and positive earnings outlook trends. Shopify is outperforming its competitors so far this year.
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Source: finance.yahoo.com
