AJ Novak
Microsoft boosted its earnings due to coronavirus by its cloud services. While most of the country was struggling with the pandemic and switching over to working online. Microsoft boosted its sales with it’s cloud services.
According to washingtonpost.com: “Microsoft’s stock is closing in on its all-time high in early February. Its shares have jumped nearly 12 percent since the beginning of the year even as the overall Nasdaq composite index has fallen 1 percent, helping secure Microsoft’s spot as the most valuable public company in the world with a market capitalization of $1.35 trillion.” Microsoft even invested in it’s own cloud services for more improvements and to make it better for the consumers who use it. According to fortune.com: “Microsoft spent $3.9 billion in capital improvements in its latest quarter, a drop from the $4.5 billion it spent during the previous quarter.” In the future spending should increase for the cloud services.
This graph shows the Microsoft net income made from 2002-2020. After looking at what was made in 2020 which was $44.28 billion. Microsoft made $13.4 billion just off of cloud services alone. The cloud services is how Microsoft was able to boost it’s income over the course of the Coronavirus.
Works Cited
Greene, Jay. “Microsoft Weathers the Coronavirus Pandemic, Posting Earnings Boost from Its Cloud Business.” The Washington Post, WP Company, 30 Apr. 2020, www.washingtonpost.com/technology/2020/04/29/microsoft-earnings-coronavirus/.
Liu, Shanhong. “Microsoft Net Income 2002-2020.” Statista, 23 July 2020, www.statista.com/statistics/267808/net-income-of-microsoft-since-2002/.
“Microsoft Cloud Strength Drives Fourth Quarter Results.” Stories, 22 July 2020, news.microsoft.com/2020/07/22/microsoft-cloud-strength-drives-fourth-quarter-results-2/.
Vanian, Jonathan. “3 Ways COVID-19 Impacted Microsoft's Latest Earnings.” Fortune, Fortune, 1 May 2020, fortune.com/2020/04/29/microsoft-earnings-shares-covid-coronavirus/.
It really is interesting to see how companies are adapting to the new virtual style of things. and it's even more interesting to see how much Microsoft has gotten from new virtual tools. Microsoft being a billion dollar company is very dexterous company and can get things done fast so I can see how and why they were able to do this. It makes me wonder what kind of competition microsoft has now, with dropbox and google drive etc... and how they will go along with this when covid ends
ReplyDeleteI know this is Economics but as I was reading I started to think sort of outside the box. I wondered how good this is for society with cloud services popularizing, it just seems everyone's moving virtual. The social aspect of life is basically being taken away from us due to technology companies like Microsoft continuously putting money into creating new product. So I ask you what your standpoint on that is. I thought the statistics you used were great, but you could've put them out in a more formal way. Personally I didn't notice a stand being taken so I'm curious what this whole piece is for? Is it to tell us about the cloud benefits, or is it to tell us that it should be funded better?
ReplyDeleteTo start off, I thought that your piece was very interesting and helped me understand why Microsoft and other big companies are doing so well while normal everyday people are having a hard time making ends meet. I think that another thing that will increase the revenue for Microsoft for the rest of the year is the next gen consoles coming out next month and I feel like they will only make more and more money while normal Americans continue to struggle. Another thing that I liked about your piece was how you brought up how their income is at a company high for the year and it would make sense if they did make their own cloud and I feel like Microsoft might have a bit of a rue because they are not really helping out everyday people with this pandemic. Overall, I think that you piece was very informative and why big companies are doing so good right now during these hard times in the economy.
ReplyDeleteI like the info you included about how much money was spent as well as the graph that you included which help me paint a better picture about income and spending
ReplyDeleteI really enjoyed reading this piece and how Microsoft was able to overcome the economic crisis of COVID and actually increase their revenue. I loved the factoids you provided of how their shares increased despite the market decrease of nearly a percent. You also shared how their market capitlzation was the most in the world at 1.35 trillion dollars. You made it very clear that someone who didn’t buy stock would rue their decision. Great blog and great visual and facts to support your argument/topic.
ReplyDeleteI really like the information that you had wrote in you essay. And the most intriguing information I found was about how Microsoft was able to overcome the affects of COVID-19. The information is useful. Plus, the graph you used a helpful visual aid. Overall, your blog was very clean concise and easy to read.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteI thought this was a very good blog and very relevant today. It makes a lot of sense why Microsoft stocks grew because of the pandemic and I thought that was a great connection you made. Obviously, everyone is changing to more online work and microsoft leads that industry. I wish you went a little more in depth of how microsoft compares to the other companies as well, but overall thought it was really well done and good visual.
ReplyDeleteI think it's great that in the graph you showed net come leading all the way back to 2002 until 2020. Giving a graph more data is always a good idea.
ReplyDeleteAt first I assumed that Microsoft released this new cloud service in 2020 but based off of the graph I can make a new assumption that it was released in 2019 because of the exponential increase in net income. However, it is quite impressive that Microsoft has continued their trend of growth throughout the pandemic but I think that can be expected even without the cloud data (which has irrefutably increased their net income). I think all tech businesses right now are highly benefiting off of the pandemic because of the high demand for virtual products. This was really interesting to think about.
ReplyDeleteI like how you used multiple sources for evidence as well as a graph to show the revenue. It dose seem like most tech company's have done better due to the pandemic. I also like how you tied in the stock market which was clear that people should of invested earlier then what the stocks hit which was a high for the company.
ReplyDeleteI like the topic you chose as it relates to the present time and I enjoyed how detailed but to the point this post is. It made it easier to follow along meanwhile still being intrigued in what I was reading, it's crazy how much money Microsoft makes!
ReplyDeleteYour blog post I believe was very well worded and presented valuable and useful information to the question at hand. As well as this I believe the image provided and sources that you cited were helpful and crucial to your piece being a success.
ReplyDeleteIt's mind blowing to see the expotential work of larger scale companies during these tough times. So many adaptations have been made in many different aspects.
ReplyDeleteIt was surprising to see how this company was able to thrive when the rest of the country struggled but with this piece it is able to explain how Microsoft was able to keep their business running so efficiently and bringing in even more money
ReplyDeleteIt's very interesting to see how Microsoft benefited so much off this pandemic and high demands for electronics for virtual things. The graph really helps put things into perspective seeing that they were still somewhat increasing their income in some years and to see how much of a difference 2019 and 2020 are is mind blowing. Overall I think a lot of electronic companies had a great benefit from this pandemic but it's nice to look at just one specific company who had a great deal of increase in their income.
ReplyDeleteI found your piece very interesting! I just wrote a piece about how some companies actually ended up doing well because of the pandemic. While I was doing reach for this piece, I found that Microsoft added $269.9 billion to their market capitalization. During the pandemic Microsoft's new communication app Microsoft Teams gained 55 million users and I think that this a big reason as to why their market capitalization and net income grew so much.
ReplyDeleteThis is an interesting article! Originally, when I first read it, I was a bit confused and surprised Microsoft has been doing so well, but then I realized that I've been using their new cloud services as well. Our Business Technologies class now is using Office 365, a digital version of Microsoft Office, as a way to adapt to the original software not always being available. So, come to think of it, it really isn't that surprising that they're growing so well.
ReplyDelete