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The Zacks Analyst Blog Highlights: Microsoft, Oracle, Google and Amazon

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For Immediate Release

Chicago, IL – July 23, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Microsoft (MSFT - Free Report) , Oracle (ORCL - Free Report) , Google (GOOGL - Free Report) and Amazon (AMZN - Free Report) .

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Here are highlights from Friday’s Analyst Blog:

How Important Are LinkedIn and Office to Microsoft (MSFT - Free Report) ?

Microsoft saw its stock price hit a brand new all-time high Friday as the company rides a wave of post-earnings momentum driven by strong top and bottom line beats. But, with most Microsoft talk surrounding Azure and cloud computing, Microsoft Office and LinkedIn played larger roles in the tech firm’s impressive fiscal 2018 growth.

Shares of Microsoft have climbed 44% over the last year and jumped 2.6% Friday morning to touch a new high of $108.20 per share. The move comes after Microsoft’s Q4 revenues surged by 17% to hit $30.09 billion, which also beat our Zacks Consensus Estimate by nearly $1 billion. At the other end of the income statement, MSFT saw its adjusted quarterly earnings pop approximately 15% to hit $1.13 per share. This also came in above our $1.07 per share estimate.

Some of Microsoft’s growth can be attributed to its Intelligent Cloud unit and the widely popular Azure segment. Plus, cloud will likely become even more vital to Microsoft going forward, especially as it competes against Oracle, Google and Amazon. “Our early investments in the intelligent cloud and intelligent edge are paying off, and we will continue to expand our reach in large and growing markets with differentiated innovation,” CEO Satya Nadella said in a company statement.

However, Microsoft’s Productivity and Business Processes unit, which includes its Office offerings and LinkedIn, brings in more revenue than cloud today.

Microsoft’s Productivity and Business Processes division posted revenues of $9.67 billion, which marked a 13% jump from the year-ago quarter.  Last quarter, this unit saw its revenues surged 17% to touch $8.95 billion.

The firm’s overall Office commercial products and cloud services revenues popped 10%. Microsoft’s Office 365 commercial sales soared 38%. Office’s consumer side saw its total revenues climb by 8%.

Meanwhile, the company’s business-focused social media platform LinkedIn’s total revenues skyrocketed 37%. Lastly, MSFT’s Dynamics unit revenues popped 11%, fueled by Dynamics 365’s 61% growth.

Productivity and Business Processes revenues hit $35.87 billion in fiscal 2018, up 20% from 2017’s $29.87 billion. Overall, the division accounted for over 32% of Microsoft’s $110.36 billion total full-year revenues, which came in above Intelligent Cloud’s 29%.

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About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

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