Shares of Microsoft (MSFT) were rising Wednesday afternoon following the release of the tech giant's latest earnings results. The stock was up nearly 7%, its highest jump in nine months, after reporting fourth-quarter revenue of $22.6 billion, ahead of analysts' $22.1 billion estimates. The company's bottom line of $0.69 per share was also ahead of estimates by a dime.
The strong quarter was fueled mainly by gains in the company's Azure cloud services segment. Year over year, the segment saw revenue double. "There's a structural trend and shift to the cloud," CFO Amy Hood told Bloomberg. "The PC market was a little better than we had expected three months ago. We saw it more specifically in more developed markets."
Growth Seeker holding Disney (DIS) shares were down more than 1% after longtime Disney bull and Stifel Nicolaus analyst Benjamin Mogil downgraded the company's shares to Hold from Buy with a $110 price target. Mogil expressed concerns about Disney's media segment, forecasting flat operating income for its media companies in the new fiscal year. While Disney's media segment is the company's biggest moneymaker, increasing content costs at ESPN in the midst of consumers preferring to cut the cord is a long-term concern for the company, Mogil said.
Towerstream (TWER) shares were up nearly 10% after the company received an extension for its listing on the Nasdaq through Nov. 22. "We have already effected a reverse stock split to meet the minimum stock price required by Nasdaq rules and are making progress toward meeting the $2.5 million stockholder's equity requirement by the November date," CEO Philip Urso said in a statement.
Finally, SAP (SAP) shares were gaining after the release of the largest European software company's latest earnings results. The company reported an operating profit of $1.67 billion, a 9% increase over the previous year. "We've had a trifecta of software revenue growth, cloud revenue growth and operating income all in double digits, which is clearly like no other company in our industry," CEO Bill McDermott said.