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
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
Note
Summary of the Earnings Call !Revenue: $70.1 billion, up 13% (15% in constant currency).
Gross Margin: Increased 11% (13% in constant currency); percentage was 69%, down 1 point year-over-year.
Operating Income: Increased 16% (19% in constant currency).
Earnings Per Share (EPS): $3.46, an increase of 18% (19% in constant currency).
Microsoft Cloud Revenue: $42.4 billion, grew 20% (22% in constant currency).
Commercial Bookings: Increased 18% (17% in constant currency).
Commercial Remaining Performance Obligation: $315 billion, up 34% (33% in constant currency).
Productivity and Business Processes Revenue: $29.9 billion, grew 10% (13% in constant currency).
Intelligent Cloud Revenue: $26.8 billion, grew 21% (22% in constant currency).
Azure and Other Cloud Services Revenue: Grew 33% (35% in constant currency).
More Personal Computing Revenue: $13.4 billion, grew 6% (7% in constant currency).
Capital Expenditures: $21.4 billion.
Cash Flow from Operations: $37 billion, up 16%.
Free Cash Flow: $20.3 billion.
Return to Shareholders: $9.7 billion through dividends and share repurchases, up 15% year-over-year.
Trade closed: target reached
Target was reached, congratulations to everyone who participated in this great trade! 🥂
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Join my Telegram community for Forex trading insights, real-time news, educational content and friendly support. Let's grow and succeed together! -
t.me/Capital55DG
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.