Market News & Analysis
Microsoft Earnings Preview
Fiona Cincotta January 29, 2020 3:48 AM
Wall Street is bracing itself for another strong quarter from the tech giant.
Wednesday 29th January after market close
- Revenue $35.69 billion +9.9%
- EPS $1.32 +20%
Microsoft has benefited greatly from its cloud business Azure. In the most recent quarter, Microsoft reported a strong 59% yoy increase in revenue. Traders will be watching closely to Azure’s performance in Q2 of 2020 to see whether this growth can be maintained? Expectations are for a deceleration of growth in the segment in line with the broader trend:
Q3 2019 75%
Q4 2019 68%
Q1 2020 59%
Q2 2020 53% exp.
According to FactSet data among 35 analysts covering Microsoft stock, 33 have a buy rating, 2 have hold and 0 have sell.
Microsoft trades above its 50, 100 & 200 sma in a bullish chart. Whilst it tested the 50 sma earlier this week, a rebound in the price means it is currently around 2% above the 50 sma.
Immediate support can be seen at yesterday’s low $160. Whilst resistance can be seen at the all-time high of $168.19.
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