Microsoft beats expectations with $18.8bn profit

The software company's success can be attributed to its cloud computing business

Microsoft reported a profit of $18.8bn for the last three months of 2021, ahead of analysts expectations, but its share price initially slumped over 5% after another rocky day on Wall Street.

The Seattle-based software giant reported revenues of $51.7bn, an increase of 20% compared to the same period last year and ahead of expectations. But the news was not enough to impress investors who appear to have soured on the tech sector after a historic boom in share prices during the pandemic.