Microsoft beats revenue forecasts but poor performance of cloud services drags share price

Microsoft outperformed analyst predictions in its latest quarterly earnings report, revealing on Tuesday that its revenue was up 15% year-over-year. But growth of the company's closely watched Azure cloud computing services failed to meet expectations and shares in Microsoft fell as much as 7% in after-hours trading. The company was expected to report steady growth in its fourth quarter earnings report, mostly on the back of its cloud services. Revenue from those services grew 29%, lower than the 30% to 31% that analysts predicted, resulting in a sell-off that exacerbates big tech's recent market woes. In Microsoft's earnings report, Satya Nadella, the CEO, sought to bolster confidence in the company's performance. "Our strong performance this fiscal year speaks both to our innovation and to the trust customers continue to place in Microsoft," said Nadella in the earnings statement.