What's Going On With Microsoft Stock Thursday?
Portfolio Pulse from Anusuya Lahiri
Microsoft Corp's (NASDAQ:MSFT) stock is trading lower following reports that the company has put the integration of LinkedIn's data center technology with Azure on hold. This decision marks a significant shift from the initial strategy announced in 2019, after Microsoft's acquisition of LinkedIn for $27 billion. The pause is attributed to reallocating resources to external Azure customers due to high demand and challenges in adapting LinkedIn's software for Azure. Despite this, Azure's revenue grew by 29% in the third quarter, while LinkedIn's revenue increased by 8%. Microsoft's stock has risen over 54% year-to-date.
December 14, 2023 | 3:29 pm
News sentiment analysis
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Microsoft's stock is trading lower due to the pause in LinkedIn's Azure integration, which could be seen as a setback in its cloud strategy against competitors like Amazon Web Services.
The news of pausing LinkedIn's Azure integration may concern investors as it suggests a potential slowdown in Microsoft's cloud expansion strategy, which is a key growth area. This could lead to short-term negative sentiment among investors.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 90
NEUTRAL IMPACT
The news about Microsoft's Azure may indirectly affect Amazon as it competes with Microsoft in the cloud infrastructure market through its Amazon Web Services.
While the article does not directly indicate any negative impact on Amazon, the pause in Microsoft's Azure integration could be seen as an opportunity for Amazon Web Services to capitalize on any perceived weakness in Microsoft's cloud offerings.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50