What makes Microsoft lose less than the other big techs?

1. Tesla (Tsla) -37.26%
2. NVIDIA (NVDA) -28.49%
3. Amazon (AMZN) -21.36%
4. Alphabet (Googl) -19.95%
5. Apple (Aapl) -18%
6. Goal (Goal) -16.44%
7. Microsoft (MSFT) -12.19%

Source: Economatica (from January 2 to April 23)

Microsoft has differences that explain this less drastic drop. The biggest secret is the branch in which the company headed by Satya Nadella operates: cloud computing and a large corporate customer base. “This is a sector that has been more protected from the worst impacts of Trump’s import tariffs,” says William Castro Alves, economist and partner at Digital Corrector Avenue.

Most Microsoft’s recipe does not come from physical or consumer products, and this is a great asset. “Trump government tariffs mainly affect tangible goods and industrial sectors, directly impacting supply chains and production costs, especially in strong China exposure, such as Apple and Amazon, whose business models are highly dependent on product sales,” says Willian Andrade, director of manager Kaya Asset Management.

Most Microsoft customers are made up of companies that use, for example, the Office package. This means that much of its cash flow is linked to long -term contracts, giving Microsoft an additional stability that other techs do not have in the same proportion.

Last year, for example, Azure was the largest contributor to the company’s revenue, generating about 43% of the total. Azure is a cloud computing platform, a computing service that allows the customer to perform and manage applications and services through a data centers network around the world.