MSFT Analysis: Microsoft Shares Rise by More Than 9%

During the additional trading session, the price of MSFT reached USD 300 per share, the highest since April 2022. This happened against the backdrop of a strong report from the company:

→ Microsoft's total revenue rose 7% to USD 52.9 billion (+7% yoy), beating forecasts at USD 51 billion.

→ Net income increased by 9% to USD 18.3 billion (+10% yoy) compared to forecasts at USD 16.6 billion.

Note the strong growth in revenue of the cloud division to USD 28.5 billion (+22% yoy), which eases fears of a slowdown in demand after the boom in digital services during the Covid-19 pandemic. According to the CEO of Microsoft,

major customers around the world continue to move key workloads to the company's cloud, and Microsoft will continue to invest in cloud infrastructure and especially AI-related spending. The CFO says the current quarter is expected to see "healthy revenue growth" and "disciplined" spending.

In a Wall Street Journal poll of 45 analysts, only one recommends selling MSFT stock. However, buying immediately after the market opens may turn into a hasty decision, since it is possible that the price will consolidate near the psychological mark of USD 300 (2) and the upper limit (1) of the ascending channel, after which a correction may occur in the middle of the current channel.

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