Trade Idea: The Bulls Are Pushing Back into Microsoft

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Keep an eye on Microsoft (MSFT).

After getting nailed on a tech pullback, the stock found triple bottom support, and is just starting to pivot higher.  From a current price of $285.90, we’d like to see it test $315 again, with patience.  All after solid earnings and guidance.

The company just posted revenue of $49.4 billion, up 18% from a year ago, and well above the Street forecast for $47.5 billion. MSFT also earned $2.22 a share in the quarter, beating estimates by three cents a share. Moving forward, MSFT “forecast Intelligent Cloud revenue of $21.1 billion to $21.35 billion for its fiscal fourth quarter. That is compared with a Wall Street consensus of $20.933 billion,” as noted by Fox Business.

Analysts like MSFT, too.

According to TheFly.com: Morgan Stanley analyst Keith Weiss said Microsoft’s 35% constant-currency commercial bookings growth, accelerating Azure growth and “robust” guidance for Q4 and FY23 illustrate the durability of the secular growth drivers at play for the company and software more broadly. Given what he sees as an “attractive multiple,” he remains a buyer at current levels and keeps an Overweight rating and $372 price target on Microsoft shares following the company’s fiscal Q3 report.