SHARE OF THE WEEK

MICROSOFT hit the headlines last week when it unveiled plans to buy Call of Duty maker Activision Blizzard in a monster merger worth over £50bn.

While the gaming and tech sector continues to debate the implications of the swoop, which will make the technology giant the world’s third largest computer game company, investor attention will instead shift towards the group’s second-quarter results due out on Tuesday.

Microsoft is predicted to report income for the period of around $17.5bn and revenues of about $50.9bn.

A key area of interest is likely to be the company’s outlook for the gaming market, the area Activision will fall under when the acquisition completes next year.

Microsoft’s cloud business will also be in focus, with the firm having invested heavily as its tries to compete against rivals in the space including Amazon’s Web Services arm.

There may also be questions around whether a global shortage of semiconductors, computer chips that are used in everything from smartphones to car braking systems, has affected the group’s ability to keep making its tablet computers and Xbox gaming consoles.

Additionally, investors will want to check that Microsoft’s Office software suite, which includes programs such as Word, Excel and Powerpoint, is managing to retain its market dominance.

However, there could be talk about a potential sale of Office after former Microsoft executive Ben Slivka said earlier this month that the company should offload the software franchise as well as its Windows business in order to fuel its investments in cloud computing.