Microsoft set to hit $4 trillion m-cap amid 8% rally in pre-market trade. How to trade post June quarter results?
Microsoft's share price, which was trading 8.5% at $557.03, in early pre-market trading, valued the company at $4.14 trillion. The tech behemoth closed the session at $513.24 in overnight trade in the US, largely unchanged. Its market cap as of Wednesday's close stood at $3.815 trillion.
Microsoft posted a revenue growth of 18% to $76.4 billion in the April-June period, its fourth fiscal. Analysts on average expected $73.81 billion, according to data compiled by LSEG, according to a Reuters report.
Meanwhile, Microsoft said Azure revenue jumped 39% in the June quarter. Azure sales surpassed $75 billion on an annual basis, the first time it has disclosed that figure, beating expectations for $74.62 billion.
Meanwhile, its capital expenditure forecast of $30 billion for the current fiscal first quarter, also came as a positive surprise.
Anshul Jain, Head of Research at Lakshmishree Investment said, Microsoft has rallied over 45.8% in the past 14 weeks, showing strong momentum but also appearing slightly overextended on the charts.
"Despite this sharp run-up, there are no immediate signs of weakness. Profit booking or a meaningful sell-off is likely to emerge only if the stock breaks below the key swing support at 500. Until that level is breached, the uptrend remains intact," Jain added.
With momentum still favouring the bulls, the stock looks poised to continue its upward move and potentially test the 550 zone in the near term, he opined.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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