Microsoft Corp. (NASDAQ: MSFT) announced its quarterly earnings, late Thursday. Jay Vleeschhouwer on CNBC’s “Squawk Box” had claimed its innovative business and consumer targeted software programs are the reason for a strong outperformance and positive growth outlook in the quarterly earnings release.
“Why is Microsoft doing well?” he iterated on “Squawk Box.” It’s not just storage. That’s really not the most interesting part. It is fundamental applications, the functions, that you can do as a business, as a consumer, that are not being delivered in a new way and paid for in a new way.”
The company’s cloud platform Azure has aided Microsoft in doubling its revenue this quarter, counterbalancing its weak phone and device sales. “Total revenues beat, even with some substantial drag,” Vleeschhouwer said. “For example, the phone business, which they probably should have never bought in the first place, was far more of a decline. But notwithstanding that, the more important business having to do with software and cloud services, exceeded expectations.”
Vleeschhouwer believes that the software giant has more room to grow, especially on its internal investments. “We’ve been recommending this stock for 4 ½ years,” he said. “We started at 30. It’s been a double. We think there’s more upside. Our last official published price target is $72.”