Microsoft Corp's quarterly profit fell slightly as the world's largest software maker was hit by slower-than expected growth in computer sales.
And Amazon.com Inc posted a 36 percent rise in revenue -- just shy of analysts' targets -- on higher profit in its key holiday quarter.
TIM GHRISKEY, CHIEF INVESTMENT OFFICER, SOLARIS ASSET
Operating income (guidance) for the first quarter is well below the consensus and the stock is taking a big hit. It could be that they're back to spending mode.
Expectations were high here, and the stock ran up today.
The slight miss on revenue for the fourth quarter is noise. They're going to have to explain what the operating income (forecast) miss is. That's a decline from the first quarter of last year and well below expectations. I'm very curious what's going on.
He said operating income expectations had been for around $274 million.
HAMED KHORSAND, ANALYST, BWS FINANCIAL
Looks like it was disappointing on the top line number. Operating margins improved slightly but not as much I was expecting. Seems like it was a competitive holiday season.
There were a lot of expectations the revenue number would be $13 billion and that just didn't happen. And going forward, it's going to be the revenue number and sustainable operating margins that what will dictate the share price.
BRENDAN BARNICLE, ANALYST, PACIFIC CREST SECURITIES
Outstanding numbers when you take a first look at it but when you delve into them, Windows missed expectations by $300 million.
The big surprise is huge strength in the Office business, $600 million above expectations. That is really being driven by the Office 10 release.
COLIN GILLIS, ANALYST, BGC FINANCIAL
This company has got some momentum behind it. The core businesses have been setting records. They've got a nice, tight focus on their core marketplaces. They've got discipline in terms of cost controls and driving earnings. They're the best in the space in terms of returning cash to shareholders.
Basically, we've gotten over 300 million Windows 7 licenses sold. I mean, PCs are not disappearing. Put that into perspective with 7 million tablets sold last quarter from Apple. Clearly there are disruptions in the landscape, but some of the negative viewpoints are overblown.
SID PARAKH, ANALYST, MCADAMS WRIGHT RAGEN
It seems like there is strength across the board. I think it's fair to say the Windows division numbers were light. The weakness in the consumer PC market has been widely known.
(Reporting by Lisa Baertlein, Jennifer Saba, Ritsuko Ando, Liana B. Baker, Alexei Oreskovic and Bradley Dorfman)