Azure Hits $100 Billion Milestone as Microsoft Stock Drops 1.6%

Microsoft's Azure has reached an impressive milestone, surpassing $100 billion in revenue for the fiscal year ended June 30. The cloud engine produced $29.4 billion last quarter and is responsible for roughly 32.7% of quarterly sales. This growth comes as part of Microsoft's annual results, which show a total revenue of $331.8 billion.

The stock price of Microsoft has dropped by 1.6%, trading at $501.73 on Friday. Despite the decline, investors are given a clear view of Azure's scale, allowing them to compare it directly with Amazon Web Services and Google Cloud. However, there is still a missing piece of information - the costs, operating margin, and return on investment for Azure.

The valuation gap between Microsoft shares and their GF Value stands at 13.75%, creating an opportunity that investors cannot ignore.