Diamonds and Dogs
Microsoft (MSFT) riding high again. Microsoft is up 3% to new all-time highs following better than expected earnings. Revenues rose 17.5% year over year to $30.09 billion. Microsoft has transitioned to the new world of technology. Revenue in Intelligent Cloud was $9.6 billion up 23%. Server products and cloud services revenue increased 26% , driven by Azure revenue growth of 89%. Gaming revenue increased 39% with Xbox software and services revenue growth up 36%. Surface revenue increased 25%.
Skechers (SKX) lowers guidance. The shoe company is down 23% not far from a 52 week low after missing earnings estimates on in-line sales. Revenues rose 10.6% year over year to $1.13 billion. The company lowered third quarter guidance 29% below consensus. A couple analysts downgraded the stock, but said business isn't as bad as the headlines indicate. The firm believes the timing of domestic wholesale shipments largely explain the soft third quarter guidance.