Microsoft made headlines with its announcement of a $60 billion stock buyback program and a 10% increase in its quarterly dividend. This move surprised investors as the company had been focusing on investing in artificial intelligence. Despite a slight slowdown in growth in its Azure cloud computing arm, Microsoft reported a 22% increase in net income, leaving it with over $75 billion in cash. The company’s market value is around $3.2 trillion, closing in on Apple’s $3.3 trillion worth.
In contrast, Apple’s shares fell by 2.8% as analysts expressed concerns about weaker demand for the new iPhone 16. Pre-order data indicated lower sales compared to the previous model, with some reports suggesting a 12.7% decrease. Analyst Ming-Chi Kuo pointed to lower-than-expected demand for the iPhone 16 Pro series, while others, like D.A. Davidson’s Gil Luria, remain optimistic about the phone’s AI features driving an upgrade cycle in the next 12-18 months.
In other news, Amazon announced that its employees would be required to return to the office five days a week starting next year, signaling a shift from the previous three days a week policy. CEO Andy Jassy cited the benefits of in-person collaboration and culture building as reasons for the move.
The tech industry continues to make waves as Microsoft and Apple navigate different paths in response to market pressures, while Amazon looks to bring its workforce back to the office in a post-pandemic world.
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