What's Going On With Microsoft Stock Thursday?
Portfolio Pulse from Adam Eckert
Microsoft Corp (NASDAQ:MSFT) is in focus ahead of its fiscal third-quarter earnings report, expected to post earnings of $2.82 per share on $60.804 billion in revenue. Last quarter, Microsoft exceeded estimates with an 18% revenue increase year-over-year, driven by AI integration across its tech stack. The company anticipates a slight decrease in Microsoft Cloud gross margin and significant capital expenditure increases. Revenue growth forecasts include 10-12% for Productivity and Business Processes, approximately 15% for Office 365, mid-to-high single digits for Office Consumer and LinkedIn, and 18-19% for Intelligent Cloud. Ahead of the earnings, MSFT shares are down 3.11% at $396.33, influenced by broader market sell-offs and caution after Meta's post-earnings drop. Analysts remain positive, with price target adjustments reflecting optimism about Microsoft's performance.
April 25, 2024 | 1:27 pm
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POSITIVE IMPACT
Microsoft is anticipated to report strong fiscal third-quarter earnings, with significant growth driven by AI integration and strategic investments in cloud and productivity services. Despite current market volatility and a recent share price drop, analyst ratings and adjusted price targets suggest confidence in Microsoft's ongoing growth and market position.
Microsoft's expected strong earnings report, based on AI and cloud growth, alongside positive analyst ratings and price target adjustments, indicate a likely short-term positive impact on MSFT stock. The recent dip in share price, influenced by broader market trends and caution from Meta's earnings fallout, presents a potential rebound opportunity post-earnings, assuming Microsoft meets or exceeds expectations.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100