Microsoft closed fiscal 2017 with a bang, delivering top- and bottom-line results that easily outpaced our expectations.
We are beginning to see Microsoft's cloud business drag consolidated top-line results along with it. Although Commercial Cloud margins remain a drag on profitability, they continue to accelerate upon an upward trajectory.
We are maintaining our wide moat rating for the firm, and after incorporating management's initial guidance for fiscal 2018, we will also maintain our $83 fair value estimate. We continue to see moderate upside in Microsoft today.