Microsoft Earnings Dented by Cloud Slowdown, Videogame Sales Drop

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Microsoft Earnings Dented by Cloud Slowdown, Videogame Sales Drop
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Microsoft suffered its slowest earnings growth in two years, hurt by a sharp slowdown in its cloud business and declining videogame sales

As markets react to inflation and high interest rates, technology stocks are having their worst start to a year on record. WSJ’s Hardika Singh explains why the sector — from tech giants to small startups — is getting hit so hard. Illustration: Jacob ReynoldsMicrosoft Corp. suffered its slowest earnings growth in two years, hurt by, declining videogame sales and the effects of strong dollar.

The company on Tuesday posted sales of $51.9 billion for its fiscal fourth-quarter, up 12% for the same period a year earlier, though below Wall Street expectations. Sales were affected by myriad other issues, including supply-chain disruptions in China, scaling back operations in Russia after the country’s invasion of Ukraine and

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