Microsoft record high ahead of earnings after the US close
Having just recently high $3tln in market value, for the first time, analysts have high expectations for fiscal Q2 earnings at Microsoft driven by artificial intelligence.
The street anticipates earnings per share of $2.29 on revenue of $52.94Bln for its fiscal second quarter. This is to be compared with $2.32 for the same quarter a year ago on revenues of $52.7Bln. During Q1, Microsoft experienced a notable acceleration in its Azure cloud revenue growth, marking a significant shift after two years of slowing momentum. Analysts anticipate this trend to have continued in Q2. Investors are also keen to see what impact the acquisition of Activision Blizzard will have on Microsoft's guidance. The $68.7Bln deal was finalised in mid-October and is expected to be a topic of discussion by Microsoft executives. And of course, there is Open AI and its recent developments. Many analysts see Microsoft as the early winner of the AI race.
(AI Video Summary)
Microsoft's earnings
Microsoft is about to release its earnings report for the second quarter, which will give us a better idea of how the company is doing financially. Recently, the value of Microsoft's shares has been increasing, reaching a milestone of $3 trillion. This is a positive sign for the company.
In the last quarter, Microsoft experienced significant growth in its Azure Cloud revenue, which is a service they offer. This means that more people are using their cloud services, which is important for Microsoft's success. Analysts believe this positive trend will continue for the rest of the year.
Microsoft's acquisition of Activision Blizzard
One thing investors are curious about is the impact of Microsoft's acquisition of Activision Blizzard. This was a big deal worth $68.7 billion, and it was finalized in October. People are interested in how this will affect Microsoft's future and what it means for Activision Blizzard employees.
Microsoft has also been making strides in artificial intelligence (AI) through its open AI initiatives. This has made them a leader in the AI industry. These advancements could have an impact on Microsoft's stock performance. Despite these uncertainties, Microsoft's stock price has been doing incredibly well, reaching an all-time high above $3 trillion.
This means that investors have a lot of confidence in the company and believe it is a good investment. If you are interested in trading Microsoft stocks, you can do so after the closing bell when the company releases its second-quarter results. Microsoft Mechanics is a helpful online resource that provides technical information and updates about the company.
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