Microsoft - Positive earnings expectation , value to collect?Hi guys we would be looking forward to our next stock analysis for Microsoft!
Microsoft Corporation continues to demonstrate robust financial performance, underpinned by its strategic investments in artificial intelligence (AI) and cloud computing. The company's strong earnings and forward-looking initiatives position it favorably for sustained growth.
In Q4 FY2024, Microsoft reported revenue of $64.7 billion, marking a 15% increase year-over-year. Net income rose to $22.0 billion, with diluted earnings per share (EPS) of $2.95, surpassing analysts' expectations of $2.90 . For the full fiscal year, revenue reached $245.1 billion, reflecting a 16% increase, while net income grew by 22% to $88.1 billion.
Microsoft's Intelligent Cloud segment, which includes Azure, generated $28.5 billion in revenue for Q4 FY2024, a 19% increase year-over-year. Azure's revenue alone grew by 29%, driven by strong demand for cloud services and AI integration . The company's AI initiatives, such as the integration of Copilot across Microsoft 365 applications, have been pivotal in enhancing productivity and driving adoption.
📈 Positive Overall Outlook
Analysts maintain a bullish outlook on Microsoft's stock, with expectations of continued growth in earnings and revenue. For fiscal year 2025, analysts forecast an EPS of $13.04, up 10.5% from the previous year . The company's strategic focus on AI and cloud computing, coupled with its strong financial results, support this positive sentiment.
Microsoft's commitment to expanding its AI capabilities is evident in its planned $80 billion investment to enhance its global network of computing centers . This investment aims to support the growing demand for AI services and solidify Microsoft's position as a leader in the AI and cloud computing markets.
To summarize, Microsoft's strong financial performance, driven by its cloud and AI initiatives, positions the company for continued success in the evolving technology landscape.
📌 Trade Plan
📈 Entry: 390 -
✅ Target: 430 - Just below the ATH / around the strong resistance
❌ SL: 365 - Just around the current rejected support zone
