The tech giant released its report for the first quarter of the 2024 financial year, and investors were pleasantly surprised by the stock's substantial growth. In contrast, several other tech companies failed to impress market players with their earnings, leading to a decline in US stock indices. Let’s delve into the Microsoft report figures and explore the upcoming price projections for its shares.
It's worth noting that the financial year in the United States starts on July 1st, so our focus here is on future developments. Recently, numerous influential US companies have unveiled their financial reports, and there are even more to come. If you don’t want to miss significant releases, you should track the stock earnings calendar. This tool allows you to select different markets, filter assets by dates, and analyze various statistics.
The chart below shows the response of Microsoft stock to the company’s report – shares hiked by 4%.
As of late, major tech companies are in a blaze of glory, but things have changed. A prime example is Alphabet, which, despite surpassing earnings estimates, fell short in the domain of cloud technology.
The whole US market is also experiencing instability.
In this context, Microsoft stands out with its impressive performance. The company's revenue totals to $56.5 billion, surpassing the anticipated $54.52 billion. The earnings per share also exceeded expectations – $2.99 against the projected $2.65.
It’s about time to talk about Microsoft cloud business, particularly Azure, which recorded a remarkable 28% growth compared to the same quarter last year.
Even when markets and economies are stressed, analysts maintain their faith in Microsoft's prospects, revising their consensus forecasts upward. For instance, Goldman Sachs has raised its target price from $400 to $450, while Deutsche Bank adjusted its projection from $380 to $395. Morningstar now forecasts a target price of $370, up from $360, and Piper Sandler has increased its projection from $400 to $425. KeyBanc, too, has raised its target price from $400 to $420. Most experts consider that one of the most well-known brands in the world still has room for growth.
At present, Microsoft stock price hovers around $335. The consensus forecast says it might increase by 20% over the next 12 months, reaching $403. Analyst sentiment leans towards a "Strong Buy" rating.
Nonetheless, it is essential to remember that analysts' opinions should be complemented with your independent analysis, particularly in today's volatile market environment, where economic and political conditions can shift rapidly.