Microsoft’s stock fell by nearly 2% after the company reported its quarterly results, but it ticked back up in the hours after.<\/p>\n
Although the company beat its revenue expectations with an increase of 16% to $83b, and profits rose 23% to $38bn, its spending on AI has hit its free cash flow. That metric, essentially how much money a company has in its bank account, is important for investors.<\/p>\n
Microsoft’s cash flow for the quarter came in at $15.8bn, down almost $6bn from a year ago.<\/p>\n
Satya Nadella, Microsoft’s chief executive, said the company’s AI business is growing. He said the annual run rate of its AI business hit $37bn.<\/p>\n
Such a metric, however, is a projection of future sales based on a multiple of current sales. The company did not specify the base level sales figure the run-rate was calculated on.<\/p>\n
Amy Hood, Microsoft’s chief financial officer, said the company’s AI business was proving to be a smoother development than when the company began shifting to cloud services in the early 2010s.<\/p>\n
“The margins have been and remain better in our AI business than when we were in our cloud transition,” Hood said.<\/p>\n
The company’s stock is down nearly 11% so far this year, as questions around its spending on AI and its partnership with OpenAI, in which it has invested more than $10bn, have continued.<\/p>\n","protected":false},"excerpt":{"rendered":"Microsoft’s stock fell by nearly 2% after the company reported its quarterly results, but it ticked back up…\n","protected":false},"author":2,"featured_media":557694,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[554,733,4308,86,56,54,55],"class_list":["post-557693","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-technology","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/557693","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=557693"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/557693\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/557694"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=557693"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=557693"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=557693"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}