Microsoft released its FY 2023 Q2 earnings on Tuesday after market close, posting its slowest revenue growth since 2016. The tech giant reported $52.7B in revenue, up 2% YoY. GAAP net income came in at $16.4B, or $2.20 a share, down 12% YoY. Microsoft’s Azure cloud business reported a 31% revenue growth, down from 35% reported in the previous quarter. More: - Microsoft’s Productivity and Business Processes unit, which includes Microsoft 365 and LinkedIn, earned $17B in revenue, up 7% YoY.
- CEO Satya Nadella noted that the company’s Teams communication platform, its Zoom rival, now has over 280 million monthly active users.
- The company’s Personal Computing unit, which includes Windows, Xbox, and Surface, earned $14.24B in revenue, down 19% YoY.
- Sales of Windows licenses to device makers fell 39% YoY, following a 15% decline in the previous quarter.
- Microsoft took a $1.2B charge in the quarter related to its plans to lay off 10,000 workers, revise its hardware lineup, and consolidate leases.
- This amount included $800M in employee severance costs.
- Microsoft shares rose more than 3% in extended trading on Tuesday.
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The New York Stock Exchange is investigating a technical issue that caused a lot of volatility on Tuesday morning, leading the exchange to halt trading in at least 40 S&P 500 Index stocks. Several stocks opened at prices much higher or lower than their Monday close price. More: - Impacted stocks include Uber, Morgan Stanley, Walmart, Nike, McDonald's, Verizon, Wells Fargo, Shell, Atria, Mosaic, 3M, and others.
- The incident occurred as the market opened around 9:30 a.m. ET; trading in several stocks was halted soon after, though many were resumed within 30 minutes of their halt.
- At about 9:50 a.m. ET, the exchange announced that all its systems were operational.
- In a statement, the NYSE said a system issue led to the exchange not conducting opening auctions for some of its listed securities.
- The exchange said it will cancel some of the early trades in the impacted stocks due to the error.
- Intercontinental Exchange owns the NYSE; the company's shares closed down more than 2% on Tuesday.
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Several major U.S. banks are partnering up to launch a new digital wallet that would rival Apple Pay. Wells Fargo, Bank of America, JPMorgan Chase, Capital One, PNC, U.S. Bancorp, and Truist Financial are developing a new product that would let consumers shop online using their debit and credit cards. More: - The banks are behind the money transfer service Zelle, which is managed by Early Warning Services LLC.
- EWS will also manage the yet-to-be-named new digital wallet product.
- Zelle will operate separately from the new product.
- The banks expect to launch with 150 million debit and credit cards active for use in the wallet when it debuts.
- The digital wallet aims to compete with other third-party wallet operators like Apple Pay and PayPal.
- EWS said the digital wallet will launch with Visa and Mastercard debit and credit cards, and it has reached out to Discover to gauge interest.
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The U.S. has accused Chinese state-owned companies of assisting Russia in its conflict with Ukraine. According to sources, the assistance includes non-lethal military and economic support that stops short of a complete evasion of U.S. and Western sanctions against Russia. More: - U.S. officials held talks with their Chinese counterparts and warned of the implications of supplying material support to Russia for the war.
- According to people familiar with the matter, the U.S. has evidence supporting the accusation but did not elaborate on the evidence.
- The Chinese firms are accused of knowingly assisting Russia in its conflict with Ukraine.
- A significant part of the U.S. strategy in Ukraine is to isolate President Putin’s government by starving the Russian economy and thwarting the war effort.
- Support from China, the world’s second-largest economy, would impact that strategy.
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GE released its Q4 and full-year 2022 earnings on Tuesday, topping analysts’ expectations for revenue and profits. The conglomerate reported $21.8B in total revenues for the quarter, up 7% YoY. Total orders came in at $25.4B, up 15% YoY and spurred by the company’s engine and power business. Full-year revenue and orders were $76.6B and $83B, respectively. More: - GE posted Q4 adjusted EPS of $1.24 and full-year adjusted EPS of $2.62.
- GE expects an operating loss between $200M and $600M for its energy business GE Vernova in 2023.
- The company’s renewable energy unit posted $2.2B in losses in 2022.
- CEO Larry Culp said the company is still struggling with high inflation and supply chain issues.
- Culp added that inflation would be a test for the company this year; GE has raised its prices to offset higher costs.
- The company completed the spin-off of its healthcare business earlier this month and plans to complete the spin-off of its energy business, including its renewables unit, in 2024.
- GE shares closed at $80.70 on Tuesday, up ~1% for the day.
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Amazon rolled out a new $5 per month per person medication prescription service for its U.S. Prime members on Tuesday. The add-on service called RxPass allows Prime members to get as many drugs as they need from a list of 50 generic medications that treat more than 80 common chronic illnesses, including diabetes, high blood pressure, and anxiety. More: - According to John Love, vice president of Amazon Pharmacy, the average Prime member would save roughly $100 per year with RxPass.
- Amazon has a Prime prescription savings option that offers customers up to an 80% discount on generic medications and up to 40% on brand-name drugs.
- RxPass is not available to customers on Medicare or Medicaid.
- The move is another push into the healthcare services sector by the e-commerce giant.
- In 2020 Amazon launched its own online pharmacy, following its acquisition of PillPack in 2018.
- In July, Amazon bought primary healthcare provider One Medical for nearly $4B.
- Amazon CEO Andy Jassy previously said the company plans to pursue various long-term opportunities, including health care.
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- The U.S. plans to send its Abrams M1 tanks to Ukraine days after committing $2.5B in new military aid to the country. The move comes after Germany said it would only send its Leopard 2 tanks to Ukraine if the U.S. also sends its own tanks.
- The film “Everything Everywhere All at Once” received 11 Oscar nominations, including best picture and best director. Actress Michelle Yeoh received her first Oscar nomination for best actress for her performance in the film.
- Ukraine President Volodymyr Zelenskyy fired several officials at various levels of his government as part of a corruption purge. The move comes as the president has been seeking more military weapons from the U.S. and the West.
- Ken Griffin’s Citadel hedge fund made a $16B profit for investors in 2022, the largest gain by the hedge fund to date. Citadel manages $54B in assets.
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 |  | Vanessa Omeokachie is a writer for Inside.com; she writes the daily Inside Business newsletter. Her interests include finance, technology, and entrepreneurship. In her free time, she enjoys reading, hiking, attending concerts and music festivals, traveling, and exploring. Connect with her on Twitter @VanessaOmeo or on LinkedIn. |   | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 and 1972 Fords. | |
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