Microsoft is in the technology sweet spot. With another stellar quarter fuelled by growth of the cloud computing business, the software giant is showing that it could have the best fundamental outlook among its tech giant peers.

The company said revenue totalled US$45.3 billion in its fiscal first quarter, a jump of 22% from a year earlier and more than the US$43.9 billion median estimate of analysts surveyed by Bloomberg.

Profits also surpassed expectations. Microsoft’s shares climbed following the announcement. There is logic to the positive reaction: The main drivers of the strong results are sustainable for the foreseeable future.

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