Microsoft today
As of 01/30/2025 04:00 pm
- 52 weeks
- $ 385.58
▼
468.35 dollars
- Profit
- 0.80 %
- P/E ratio.
- 34.24
- The target price
- 510.96 dollars
Microsoft Nasdak: msft The share price fell more than 6 % after the FQ2 profit report and the bullish trend, but it does not matter. The results were strong, and the long -term opportunity compensates for the weak guidance. The decisive details of the report are the accelerated growth of artificial intelligence services.
The acceleration supported its cloud sector, even with a slowdown in AZURE growth and emphasized the expectations of artificial intelligence in the long run. This includes a larger and longer services boom than the ongoing infrastructure boom. The expectations for the growth of the artificial intelligence services industry are still rising, with 36 % expectation of an annual growth rate over the next seven years or more.
Microsoft outperforms the performance in Q2: the guidance is weak, but to a high tape
Microsoft had a strong quarter, as it produced revenue growth of two numbers and a large margin. The company’s net revenue increased by $ 69.6 billion, more than 12 % compared to last year in all important sectors. With regard to products against services, product sales decreased by 14 % and were compensated by a strong increase of 22 % in services. More personal computing is the only weak place based on the sector, and its work is flat. Productivity and commercial operations grew by 14 %, led by a 19 % increase in smart computing. IC gains were driven by 21 % in Microsoft Cloud revenues, including a large increase of 31 % in Azure.
Margin news is also strong, including improving total results and operation. The operating income grew by 17 %, leaving the profits of the principles of accounting generally accepted at $ 3.23 or $ 0.13 above the consensus of Marketbeat reported. The profits of the accounting principles of accounting generally increased only by only 10 % compared to the top of 12.2 %, but are affected by the increase in the expected investment to maintain the long -term growth. Investment plans include an increase in annual spending by 50 % to enhance the company’s cloud situation and enhance artificial intelligence services.
Guidance news is the reason for the decrease in the share price. The company repeated its pre -announced expectations, adding the effect of the new FX’s opposite winds. Microsoft expects the currency to turning to a reduction of about 2 % of the upper line and influencing the margin. However, ready -made meals are that the results of the FQ3 include another quarter of the high growth of two numbers, a strong margin, and a large cash flow despite the increase in investment. The cash flow in the second quarter was sufficient to maintain the expenses of the return on capital and public budget improvements, including low debt, total responsibility, and 12.75 % increase in shareholders ’rights.
The analyst’s feeling is still fixed: Microsoft is $ 500
Microsoft Marketrank ™ shares analysis
- In general, Marketrank ™
- Celsius 99
- Analyst classification
- Moderate purchase
- The upward trend/negative side
- 22.8 % up
- The level of short attention
- correct
- Profit power
- strong
- Environmental result
- -0.75
- Feelings of news
- 0.84
- Trading from the inside
- Selling stocks
- Bruges. Profit growth
- 14.03 %
See full analysis
The positive analysts’ response to Microsoft’s results and the updating of the guidance will help support its share price over time. Marketbeat follows a single targeted reduction through many assessments and repeated goals. They, including reducing the target price, link shares to a moderate purchase and forecasting to a level of $ 500 or higher by the end of the year, as it is in line with the broader trends. The trends of the broader analysts include an increase in coverage and the goal of the price that rises by 20 % in 12 months, indicating the share price of 25 % in 2025.
Microsoft’s evaluation is an anxiety but it is met with a long -term look. Its 34X profits with the most successful technology companies fall today, which is a high -value group, but it is more than 50 % premium for the S&P 500 with slowdown in prediction. However, despite the slowdown, revenues are expected to maintain a low annual growth rate from the two numbers until 2025, and profits to grow slightly faster. In this scenario, the company’s multiple price decreases to less than a wide range of wide market by 2030, indicating a value related to expectations.
The technical procedure that follows the release is related, but the primary direction line has been broken. The collapse in the direction may lead to a reflection at work, but in this case, there is unlikely a deep decrease. The most likely scenario is that the trend of Microsoft prices has turned from top to my side and will continue to move within the specified range. The low end of the range is approaching $ 400, and rising near $ 460. The bias is the upper direction, but it may take a quarter or two before the next upward trend begins and the highest new level is set.
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