A recent change in tone appears to have put the pulls back in charge ahead of this week's release.
Plus, China scuttles Meta's acquisition and tech layoffs proliferate.
MSFT's Azure fuels AI push ahead of fiscal Q3, but investors may want to wait as growth, capacity limits and monetization timelines remain key uncertainties.
A Bernstein analyst has reiterated a bullish call on Microsoft (NASDAQ: MSFT) stock, citing the impact of the company's ongoing partnership with OpenAI.
Microsoft's AI moat is wider than the headlines suggest. On April 27, Microsoft and OpenAI announced revised partnership terms that loosened the exclusivity that once defined the relationship.
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Microsoft Corporation is poised for another earnings beat, supported by robust growth and a strong track record of outperforming analyst expectations. MSFT's Intelligent Cloud unit likely drives high-20s to low-30s revenue growth, while Productivity and Business Processes maintains steady mid-teens expansion. Valuation remains attractive at 23x–24x current-year earnings and potentially 20x–21x next year, given MSFT's consistent overperformance.
The Musk vs. Altman trial is officially underway, and the company with the most to lose outside the courtroom is Microsoft (NASDAQ:MSFT | MSFT Price Prediction).
Microsoft Corp (NASDAQ:MSFT) shares have slid roughly 12% since its fiscal second-quarter results, and heading into Wednesday's fiscal third-quarter report, Jefferies thinks the stock's story is ready for a rewrite. The culprit behind the selloff has been investor frustration over the lack of a near-term inflection in both Azure and the Microsoft 365 Commercial business.
Microsoft said Monday it will no longer pay a share of its revenue to ChatGPT maker OpenAI, the latest move to untether a close partnership that helped unleash an artificial intelligence boom.
Retail investors aren't trading the megacap tech stocks with their usual fervor.
Evercore ISI analysts led by Kirk Materne are heading into Microsoft's (NASDAQ: MSFT) fiscal Q3 earnings on April 29th with a decidedly bullish outlook. Consensus is for the multinational to report $4.07 a share of earnings on $81.4 billion in revenue, indicating mid-to-late teens gains in both the top and bottom line.