Microsoft Q2 Earnings Preview: Artificial Intelligence, Gaming, More Key Items To Watch
Portfolio Pulse from Chris Katje
Microsoft Corp (NASDAQ:MSFT) is set to report Q2 financial results after market close on January 30. Analysts expect revenue of $61.10 billion and EPS of $2.78, with potential beats on both. Wedbush analyst Daniel Ives highlights the importance of AI and cloud growth, particularly Azure, for Microsoft's future, calling it Microsoft's 'iPhone Moment'. Other analysts also maintain positive ratings with high price targets. AI infusion in tech and concerns over deepfake AI are key topics, alongside the impact of layoffs in Microsoft's gaming division.
January 29, 2024 | 10:39 pm
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POSITIVE IMPACT
Microsoft is anticipated to beat Q2 revenue and EPS estimates, with a focus on AI and Azure growth. Analysts are bullish, with high price targets. AI and gaming division's performance post-layoffs are also in focus.
The positive outlook from analysts, especially regarding AI and Azure, suggests a strong potential for stock appreciation in the short term. The anticipation of revenue and EPS beats, along with high price targets from analysts, indicate investor confidence. However, the actual performance in AI and the gaming division, as well as the market's overall reaction to the earnings report, will ultimately determine the stock's movement.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100