Must Read Money Stories for Wednesday, July 20

by July 20, 2016

Must Read Money Stories

Cloud-High Growth for Microsoft

Microsoft managed to surpass its quarterly revenue expectations thanks to hefty growth from its cloud division. The company said it earned $22.6 billion in the fourth fiscal quarter of 2016, just a tick over the $22.14 billion benchmark set by analysts, according to Venture Beat. Leading the charge was Azure, the technology company’s cloud computing platform, which grew at 102 percent. However, PCWorld reports that Microsoft’s smartphone sales dropped significantly – by a dismal 71 percent.

Health Care M&A Smackdown?

Speculation is rising over whether the U.S. Justice Department will fight to stop two major health insurance company acquisitions. Reuters cited an anonymous source that said the department will file lawsuits against Anthem Inc. and Human Inc., which are trying to acquire Cigna Corp and Aetna Inc., respectively. The Anthem-Cigna acquisition adds up to $48 billion, and the other deal is $34 billion. The companies have said their plans are a result of costs raised by the Affordable Care Act, while regulators worry that the acquisitions will force consumers to pay more money.

Bank Closes

Comerica announced that it will lay off approximately 800 Michigan workers as it closes 40 branches in the state, the Detroit Free Press reports. The second largest bank in Michigan said its profit fell by 23 percent in its last quarter. Comerica is based in Dallas, but the majority of its 8,800 full-time employees work in Michigan.

Failed Coup?

A war of words is developing between Hyperloop One and a group of former engineers who are suing the company. One of the company’s co-founders is part of the dissidents, who accuse the Hyperloop One leadership of being nepotistic and wasteful. The company, which was founded to test the Hyperloop transportational concept devised by Elon Musk, has launched a counter suit demanding a total of $250 million, Forbes reports. Hyperloop One claims that the engineers tried to take over the company in a “failed coup.”

Windows Azure” by flickr user “Rainer Stropek” CC license CC by-NC-ND 2.0