Microsoft stock at a record high ahead of earnings
After a stellar year, Microsoft looks well-positioned for further growth and further gains in its shares.
When is Microsoft earning’s date?
Microsoft reports earnings on 27 July.
Microsoft earnings – what to expect
Microsoft is expected to report revenue of $44 billion, up 16%, while earnings per share (EPS) are expected to rise 30% to $1.90.
Earnings season this time rolls around when Microsoft stock has already hit a new record high. The last set of quarterly results beat forecasts, accompanied by strong guidance for the remainder of its year, together with the largest overall growth in revenue since 2018. Growth prospects for its key cloud computing division look good, after a year in which its share of the SaaS market rose to 19.7%. Other parts of the group, including its Dynamics business, are also increasing market share and projecting a further shift towards a subscription-based model.
Microsoft earnings – valuation and broker ratings
At 38 times earnings and with a yield of 0.8%, Microsoft is hardly a bargain. But it is still a quality stock, with good growth in earnings expected, and solid momentum behind the share price.
Unsurprisingly, Microsoft remains popular with brokers, with 37 ‘strong buy’ or ‘buy’ recommendations and just two ‘holds’, with no sell recommendations.
Microsoft shares – technical analysis
After the plunge of early 2020, Microsoft shares have recovered their poise, rallying steadily since April and showing no sign of slowing down. Repeated higher highs and higher lows have maintained the trend, and the price is still holding firmly above the 50-, 100- and 200-day moving averages (DMA). Trendline support from late September is some distance away, and after a 17% rally from the May low some consolidation and weakness might not be surprising.
A solid performer, with more to come
This is a market that looks for quality in its winners, and Microsoft falls squarely into this category. Revenue growth is strong, the group has a solid plan for the quarters to come and the stock price continues to rally. So far, there seems little sign of a major shift in performance or sentiment.
The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.
Act on share opportunities today
Go long or short on thousands of international stocks with CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
