Stocks to Beat Q3 Consensus Expectations: Microsoft
The software giant added nearly 4.5% to its market value in after-hours on October 24, but more space to grow up is available. The current price range is more than 5% below the Windows maker's mid-July high at $366.78, while a generally bullish pressure was undeniable throughout the year, as the stock already gained nearly 42% since the end of December 2022. Microsoft remains a favourite of the investing community, as its shining quarterly results outweigh rather cautious preliminary estimates on both sales and profit lines. The financial team of Bill Gates announced its earnings per share (EPS) of $2.99 on revenue of $56.52 billion, while analysts polled by Reuters anticipated EPS of $2.65 on revenue of $54.53 billion, and this was a big difference.
The company also said its Azure cloud business was 29% up YoY in the quarter, compared with Wall Street consensus of 26%. By contrast, the Google-parent Alphabet's cloud division showed its slowest growth in 11 quarters, even though it amounted to 22.5%. If so, it can be considered as a competitive success for Microsoft, at the time when many corporate clients had to curb their budget spending on cloud-related services, including expensive artificial intelligence (AI) tools. Microsoft, as well as NVIDIA, seem to become the two AI world bosses. In the case of Microsoft, this happens because of its large and timely investment into the segment even before the pandemic, including a partnership with a famous OpenAI startup, which produced a viral ChatGPT chatbot.
The company's revenue in other productivity and business processes was up 13% to $18.6 billion, while sales in personal computing was also up 3% to $13.7 billion. The stock moderated its initial gains only after Microsoft's CFO Amy Hood estimated its next quarter's revenue at levels around $60.9 billion, which was not low but just in line with the consensus guidance. Yet, Goldman Sachs group of analysts quickly raised its target by $50 to $450 per share hot on the trail after the report, and we essentially concur in this assessment.
Disclaimer:
The comments, insights, and reviews posted in this section are solely the opinions and perspectives of authors and do not represent the views or endorsements of RHC Investments or its administrators, except if explicitly indicated. RHC Investments provides a platform for users to share their thoughts on financial market news, investing strategies, and related topics. However, we do not guarantee the accuracy, completeness, or reliability of any user-generated content.
Investment Risks and Advice:
Please be aware that all investment decisions involve risks, and the information shared on metadoro.com should not be considered as financial advice. Always conduct thorough research, seek professional advice, and exercise caution when making investment decisions.
Moderation and Monitoring:
While we strive to maintain a respectful and informative environment, we cannot endorse or verify the accuracy of all user-generated content. We reserve the right to moderate, edit, or remove any comments or posts that violate our community guidelines, infringe on intellectual property rights, or contain harmful content.
Content Ownership:
By submitting content to metadoro.com, users grant RHC Investments a non-exclusive, royalty-free license to use, display, and distribute the content. Users are responsible for ensuring they have the necessary rights to share the content they post.
Community Guidelines:
To maintain a positive and respectful community, users are expected to adhere to the community guidelines of Metadoro. Any content that is misleading, offensive, or violates applicable laws and regulations will be subject to moderation or removal.
Changes to Disclaimer:
We reserve the right to update, modify, or amend this disclaimer at any time. Users are encouraged to review this disclaimer periodically to stay informed about any changes.
