Shares fell about 3% in trading after the bell
Microsoft Corp. missed estimates for quarterly revenue on Tuesday, hurt by a stronger dollar and tough competition from Amazon.com Inc. and Alphabet Inc. in the booming cloud-computing space.
Competition in the sector has ramped up since the lockdowns as more businesses seek to move computing and data storage to the cloud.
Shares of the Redmond, Washington-based company fell about three per cent in trading after the bell. The stock has lost about 25 per cent this year.
Microsoft also faces pressure from a stronger greenback as it gets about half of its revenue from outside the United States. That led the company to lower its fourth-quarter profit and revenue forecasts in June.