Stock Market »Microsoft Results and MSFT Stock Analysis

Can Microsoft meet the dizzying market expectations?

As always with Microsoft, the rapidly growing cloud computing platform Azure will be a major focus for stock traders. As one of only two companies with a market capitalization of $ 2 trillion, Microsoft (MSFT) is one of the most closely watched and traded stocks around the globe. Find out what to expect from the key company’s second quarter earnings report below:

When will Microsoft’s results be released?

Tuesday July 27 after the stock market closing bell.

What are MSFT’s earnings expectations?

Traders and economists expect Microsoft’s adjusted second quarter EPS to be $ 1.90. Revenue is expected to reach $ 44.1 billion.

Key Themes to Watch Out for in MSFT Results

Microsoft divides its business into three similarly sized segments: “Productivity and Business Processes” (including Microsoft Office Suite), “Intelligent Cloud” (including Azure) and “More Personal Computing” (highlighted by Windows and Xbox) . With the recovery in corporate IT budgets and continued strength in personal computer sales, analysts are calling for strong growth in all three segments, so ‘whisper’ expectations may be even higher than outlined below. above.


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As always with Microsoft, the rapidly growing cloud computing platform Azure will be a major focus for stock traders. The company recently expanded its cloud availability to many new regions outside of the United States, including China, Indonesia, and Malaysia. Meanwhile, after a difficult deployment, Microsoft Teams’ workspace communication tool has hit its stride amid the wider pandemic shift to remote and online working. With tight integrations with other widely used productivity tools like Powerpoint and SharePoint, traders are expected to embrace strong adoption of Teams this quarter.

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Technical analysis of MSFT shares

Looking at the chart, shares of MSFT have moved into high gear on the stock market over the past two months, adding nearly $ 400 billion to its market cap; for reference, that’s roughly the full market cap of industry leaders like Walmart (WMT) or Mastercard (MA). That said, the stock is showing a bearish divergence from its near highs 14-day RSI, suggesting that buying pressure may ease and the stock may be vulnerable to a market pullback if earnings do not break above. easily market expectations.

Daily Microsoft Chart (MSFT)

Source : StoneX, TradingView

As for price targets, a strong earnings report could pave the way for a move up to the psychologically significant level of $ 300, while a disappointing publication could cause the stock price to pull back towards the EMA moving average. of 21 days close to $ 275.

By Matt Weller, CFA, CMT, Forex.com » Official site

Disclaimer: The information and opinions contained in this report are provided for general information only and do not constitute an offer or a solicitation to buy or sell forex foreign exchange contracts or CFDs. Although the information contained in this document has been taken from sources believed to be reliable, the author does not guarantee its accuracy or completeness, and assumes no responsibility for any direct, indirect or consequential damages that may result from the fact that someone relies on such information.

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