Microsoft Corporation (Nasdaq:MSFT) has joined other tech giants in mass layoffs. Earlier this week they announced that they are cutting 10,000 jobs, which is 5% of their workforce. This is coming on the back of overindulgent hiring during the pandemic, causing Microsoft to be bloated. Even with the inflated workforce, their revenue grew 15% last year and they still have the most-used enterprise software in the world, Office 365. On top of that, they are the seventh-largest digital advertising company in the world and are continuing to grow significantly in the cybersecurity and cloud computing space. In fact, they currently grasp 21% of the market share of cloud computing infrastructure. Overall, with the struggles of the Nasdaq, Microsoft’s share prices are down more than 20% over the past year, but the company is not losing growth.
Comps: Apple Inc. (Nasdaq:AAPL), Alphabet Inc. (Nasdaq:GOOG)
In comparison to both, Microsoft has significantly higher earnings per share profit margins, and revenue growth. If we look at a head-to-head with Apple, they also have the advantage in debt ratios. Additionally, Microsoft has a better return on equity than Alphabet.