Microsoft cloud growth forecast bodes well for tech rivals, too

FILE PHOTO: A Microsoft logo is seen next to a cloud in Los Angeles, California, U.S. on June 14, 2016. REUTERS/Lucy Nicholson/File Photo

NEW YORK (Reuters) -After a brief scare, Microsoft Corp reassured tech investors late on Tuesday that the enterprise internet cloud business category has plenty of room to grow.

Shares of the software and services giant sank as much as 6% on Tuesday after it reported less-than-stellar growth in its cloud business. But they rebounded https://www.reuters.com/article/instant-article/idUSL4N2U548J on Wednesday on Microsoft forecast for cloud growth in the current quarter. Shares climbed more than 5% to $303.14, adding a boost to Wall Street's main indexes.