Microsoft (MSFT) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
There's been an undeniable shift over the past 20 years. During that time, technology companies have climbed the ranks of the world's most valuable companies, which was once the exclusive domain of industrial and energy concerns.
Alphabet (GOOG) is my top Mag-7 pick, with strong earnings, attractive valuation, and aggressive AI capex supporting continued upside into year-end. Meta Platforms (META) also looks undervalued after robust revenue/EPS beats and technical breakout; I view dips as buying opportunities unless key support fails. Amazon (AMZN) and Microsoft (MSFT) show relative weakness—cloud growth disappoints for AMZN, while MSFT looks vulnerable to pullbacks near highs; I'm cautious or sidelined with MSFT.
The company's non-AI businesses, including productivity software and cloud computing, are going strong.
Recent Q2 earnings reports have brought unexpected good news for both Meta (META) and Microsoft (MSFT).
I'm upgrading C3.ai to a strong buy as recent CEO exit concerns are overblown given the company's partner-led sales model. C3.ai's partnerships, especially with Microsoft Azure, are driving explosive partner-led bookings growth and supporting long-term sales momentum. Recent strong earnings results from Microsoft are a positive read-through for C3.ai's own earnings, expected sometime in late August.
Key Points in This Article: Tech giants are significantly increasing capital expenditures, with over $100 billion planned for 2025, largely directed toward AI infrastructure reliant on specialized chips.
Why investors should use the Zacks Earnings ESP tool to help find stocks that are poised to top quarterly earnings estimates.
Microsoft became the second company to pass a $4 trillion market cap mark after a blowout earnings release on Wednesday afternoon. That release showed quarterly revenue up 18% year over year, and net income up 24%, which resulted in Microsoft shares increasing more than 4% on Thursday, bringing the company's overall value past $4 trillion.
MSFT and META soared on blowout earnings, with MSFT joining the $4-trillion market-cap and fueling ETF plays like XLK, VGT, MAGS and FNGS.
Nvidia welcomed Microsoft to the exclusive $4 trillion club as America's tech giants plow through growing demand for artificial intelligence.
AWS represents a small part of Amazon's total revenue, but it is a key driver of profits, typically accounting for about 60% of Amazon's overall operating income.