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Microsoft profits jump on cloud strength

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Microsoft quarterly profits nearly doubled to $5.3bn, after growth from its cloud computing business.The firm said the figures show its focus on cloud computing – software, storage and other services connected over the internet – is working.An ongoing overhaul at e-commerce firm eBay was rockier.Its profits dropped 94% in the three months that ended in June after it recorded an income tax provision of more than $400m.eBay’s stock dropped almost 4% in after-hours trade after its profit forecast largely fell below estimates.Microsoft has been reinventing its business to become less reliant on computer sales and older software products.The firm earlier this month said it would reorganise its sales force and cut positions.Chief executive Satya Nadella has focused on the cloud business and selling to the growing number of companies looking to conduct more work online.Executives said that emphasis is paying off in sales and renewals.Revenue was $23.3bn in the quarter, up from $20.6bn in the prior year. Profits in the quarter were $5.3bn, up from $3bn the year before.”Overall the approach we have taken for multiple years now is to transform everything that we do,” chief executive Satya Nadella said. “We’ve now got very good customer momentum.”Its share price climbed more than 3% in after-market trading after the Seattle tech giant’s earnings beat analyst expectations. eBay’s Hamilton effecteBay has also been working to move beyond the identity it forged as an auction site in the early days of the internet, spending on marketing and on updating its websites.A $311m tax charge, related to a reorganisation since it split from PayPal in 2015. led to a huge drop in net income. The changes have previously led to tax benefits.eBay said its US StubHub business suffered without without events such as Hamilton and the Copa America football tournament to drive buyers.But the California firm said quarterly revenue increased 4% year-on-year to $2.3bn, as two million new buyers turned to its platforms.
Source: BBC