MSFT stock

2022 - 4 - 26

Microsoft earnings beat across the board, stock up on outlook (CNBC)

Microsoft's Azure cloud revenue came in higher than analysts had expected, with the company citing strong demand for consumption-based services.

Microsoft announced a plan during the quarter to acquire video-game publisher Activision Blizzard for $68.7 billion, the largest transaction in Microsoft's 47-year history. Microsoft said revenue from Windows license sales to PC manufacturers increased 11% in the quarter. Microsoft's revenue increased by 18% year over year in the quarter, which ended on March 31, compared with 20% in the previous quarter, according to a statement. The company disclosed financial figures from its security business for the first time last year, surprising some observers. The expectation was 45.3%, according to a CNBC survey of 13 analysts, while analysts polled by StreetAccount had been looking for 43.6% growth. Microsoft raised the prices of certain Office 365 productivity software subscriptions during the quarter. That's up 26% and above the $18.90 billion consensus among analysts polled by StreetAccount. Microsoft had projected high-single-digit growth in January. Research firm Gartner estimated that PC shipments fell 6.8% in the quarter, marking the sharpest decline since the first quarter of 2020, after a pandemic-fueled market expansion. Microsoft said in January its security revenue grew nearly 45% in 2021, faster than any other major product category. Amy Hood, Microsoft's finance chief called for fiscal fourth-quarter revenue of $52.4 billion to $53.2 billion on a conference call with analysts. Hood's revenue guidance for each of the company's three business segments surpassed the expectations of analysts surveyed by StreetAccount. But the middle of the range for total revenue, at $52.8 billion, is just below the $52.95 billion consensus among analysts polled by Refinitiv. - Fourth-quarter revenue guidance for each of the company's three business segments surpassed the expectations of analysts surveyed by StreetAccount.

Use This Low-Risk Trade to Buy Microsoft in Front of Earnings (Investorplace.com)

Microsoft reports earnings after the close today. Consensus is for $2.18 earnings per share (EPS) on just over $49 billion in revenue.

The potential return on risk is 25%. The options market is implying just more than a 5% earnings-based move in MSFT stock. Shares opened lower and near the lows of the day only to pivot and close higher and on the highs of the day. On the date of publication, Tim Biggam did not have (either directly or indirectly) any positions in the securities mentioned in this article. This is well above the 3.97% average implied move seen over the past eight quarters. Luckily, the options market provides a better way to play. So to get paid now to buy MSFT stock later for a lower price, an out-of-the money bull put spread makes probabilistic sense. The company has handily beaten estimates over the past three quarters, yet MSFT stock is actually slightly lower in that time frame. There is major long-term horizontal support for Microsoft at the $275 level. This type of price action is often a sign the previous trend has come to an end. The analysts certainly have a bullish outlook for MSFT stock as well. The lowest price target stands at a rather bullish $330.

Microsoft flexes its earnings muscle on cloud growth as MSFT stock ... (Finbold)

Microsoft provided investors with much-needed respite by reporting better than expected results for its fiscal third quarter ended March 31.

Strong companies with strong growth and earnings should do well in the long run. Meanwhile, analysts appear to have complete faith in MSFT with all 18 covering the stock giving it a strong buy rating. The cloud segment was up 26%, which was well ahead of the company’s previous guidance and Wall Street expectations.

Microsoft Rises, Alphabet Falls: 'Not All Technology Stocks Are ... (Barron's)

Microsoft gets a boost from better-than-expected guidance for its fiscal fourth quarter, and strong demand for its cloud services.

Microsoft Earnings: Inflation-Proof Business Model - Buy On Weakness (Seeking Alpha)

We discuss why MSFT stock remains a Buy. I do much more than just articles at Ultimate Growth Investing: Members get access to model portfolios, regular updates ...

Disclosure: I/we have a beneficial long position in the shares of MSFT either through stock ownership, options, or other derivatives. We own our best ideas and have skin in the game. Come and join our community of investors as we navigate the ups and down of the market together. MSFT stock remains a Buy. The digestion of its growth premium has been evident, but we think it has normalized significantly. Our best research ideas in the service are highly actionable. All our best ideas are shared only with our community in the service. You will also have access to our Growth Portfolio. However, as seen above, we mentioned that the battering in MSFT stock was justified as its revenue growth decelerated over the past year. The digestion of the SaaS growth premium has been the most pronounced in the tech sector, given the industry's premium valuation. Upon subscription, you will have access to all of our investing resources. Therefore, it highlighted the secular tailwinds benefiting Microsoft's business model as corporate IT spending continues to shift to the Azure cloud. The King of SaaS continues to be firing on most cylinders, even though there was some cyclical weakness on the PC OEM and hardware side of the house.

Is Microsoft (MSFT) the Single Best Stock Investors Can Buy Right ... (Nasdaq)

In writing about financial markets, I try to stay away from superlatives. Today, though, I am going to make an exception, and say that Microsoft (MSFT) is ...

For a company that has consistently beaten expectations, has shown an ability to grow in good times and bad, and has the kind of brand identity that will be a benefit in an inflationary environment, that is quite remarkable, as is the fact that despite that growth, MSFT has a P/E right around the market average. The stock jumped on earnings and the general bounce back this morning, which makes me think there will probably be better entry points than this to be had over the next few days as the bearish mood regarding stocks overall returns, but even if you buy now, just a return to the levels of the start of the year would offer an upside of over sixteen percent. On the basis that they will continue to do so and given the limited long-term downside of such an iconic company, it doesn’t seem like a stretch at all to say that MSFT is indeed the best stock to buy on this drop. That shows a brand loyalty that will trickle down to other products and will be essential over the next year or so if inflation stays with us. Most people will probably focus on the continued success of the company’s Intelligent Cloud segment, which includes Azure. That is understandable given that division’s 46% growth, but more impressive to me is the double-digit growth in older, less flashy divisions, such as Windows and Office 365. By that, I don’t mean that MSFT will have gained more than any other stock in six months or a year from now.

Microsoft's Earnings Give You Plenty of Reasons to Continue Investing (Investorplace.com)

Shares of Microsoft (NASDAQ:MSFT) surged as much as 6% in extended trading on Tuesday following the release of the company's third-quarter earnings.

Its recent earnings reaffirm Microsoft’s position as one of the strongest tech giants in the industry. Plus, Microsoft mentioned that the acquisition of Activision will help with its gaming business, in addition to helping provide building blocks for its own virtual world, the Microsoft Metaverse. Microsoft has been dominating the world of computing for decades. Shares of Microsoft (NASDAQ: MSFT) surged as much as 6% in extended trading on Tuesday following the release of the company’s third-quarter earnings. Investors are showing lots of interest in Microsoft’s recent acquisition. The company reported earnings which showed that revenue from their Intelligent Cloud segment increased, specifically revenue coming out of their Azure public cloud service.