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Yahoo
4 hours ago
- Business
- Yahoo
Microsoft Keeps Hitting Record Highs. Analysts Think There's Still Room to Rise
Microsoft shares closed at a record high Thursday and are on track to do it again on Friday. Analysts this week highlighted the tech titan's strong position amid the AI revolution. The consensus price target for analysts tracked by Visible Alpha is about 12% higher than Microsoft's intraday (MSFT) shares are on pace to close at a second record high in as many days Friday, but analysts say there's still a lot of upside left on the table for the world's most valuable company. Bernstein this week raised its target to $540 from $520, arguing the company's partnership with OpenAI 'can generate huge potential revenue upside for Azure' by the end of the decade, according to CNBC. Wedbush meanwhile said Microsoft 'is currently in the driver's seat on the AI front,' in a note to clients. Microsoft's Intelligent Cloud segment, which includes the Azure cloud computing platform, delivered 21% revenue growth year-over-year last quarter, beating analysts expectations. Microsoft called for similar growth in the current quarter, which runs through June. Following the company's Microsoft Build event last month, Goldman Sachs analysts said the company could reach $300 billion in cloud revenue by 2029, compared to $135 billion in fiscal 2024. The bank raised its price target to $550 from $480. The consensus price target for Microsoft shares among analysts tracked by Visible Alpha is near $525, which implies 12% upside over Friday's intraday price of about $471 with all 19 analysts issuing a buy or equivalent rating. Microsoft has jockeyed with Nvidia (NVDA) this week for the title of the most valuable company in the world by market capitalization. Its valuation stood at a whopping $3.48 trillion Friday, with Nvidia just behind at $3.46 billion. Read the original article on Investopedia Sign in to access your portfolio
Globe and Mail
07-05-2025
- Business
- Globe and Mail
Azure Aids MSFT's Q3 Beat: Should AI-Focused Investors Buy the Stock?
Microsoft MSFT delivered exceptional performance in its third quarter of fiscal 2025, with Azure and AI initiatives taking center stage in the company's growth narrative. (Read More: Microsoft Q3 Earnings & Revenues Beat on Surging Cloud Business) The tech giant's strategic investments in artificial intelligence are yielding substantial returns, positioning the stock as a compelling buy opportunity for investors seeking exposure to the transformative potential of AI technology. The Zacks Consensus Estimate for Microsoft's fiscal 2025 revenues is pegged at $278.62 billion, suggesting 13.67% year-over-year growth. The consensus mark for earnings is pegged at $13.3 per share, indicating a 1.8% year-over-year increase. Find the latest EPS estimates and surprises on Zacks Earnings Calendar. Azure's Explosive Growth Propels Microsoft Forward Microsoft's Intelligent Cloud segment emerged as the company's primary growth engine, with Azure and other cloud services revenues surging 33% (35% in constant currency), including 16 percentage points from AI services. This remarkable performance highlights MSFT's successful execution of its AI-first cloud strategy and the increasing enterprise adoption of its comprehensive AI offerings. During the quarter, Microsoft processed more than 100 trillion tokens, representing a fivefold increase year over year, including a record 50 trillion tokens in March alone. This exponential growth in AI workloads underscores the accelerating demand for Microsoft's AI infrastructure and services. The Azure AI Foundry platform, now used by developers at more than 70,000 enterprises and digital natives, continues to expand its capabilities with new models from industry leaders. Microsoft brought the latest models from OpenAI, along with offerings from Cohere, DeepSeek, Meta, Mistral, and Stability to the platform, significantly enhancing its AI model catalog for enterprise customers. Strategic Advantages Amid Fierce Competition Microsoft faces significant competitive pressure in the AI space from tech giants, including Alphabet 's GOOGL Google, Nvidia NVDA and Amazon AMZN. Google's Isomorphic Labs secured $600 million for AI drug discovery, leveraging its Nobel Prize-winning AlphaFold technology. Nvidia dominates the industrial AI space with its Omniverse Blueprint for manufacturing digital twins, while Amazon unveiled Nova Act, an AI agent that controls web browsers and reportedly outperforms OpenAI on internal benchmarks. Despite this intensifying competition, Microsoft maintains distinct advantages through its balanced cloud-AI ecosystem and cross-platform strategy. The company's comprehensive integration across productivity tools, infrastructure, and enterprise applications creates a compelling value proposition that competitors struggle to match. Microsoft's partnerships with industry leaders further strengthen its competitive position in the enterprise AI market. The company expanded its collaboration with NVIDIA, integrating NVIDIA NIM microservices and the AgentIQ toolkit into Azure AI Foundry to deliver unprecedented efficiency for AI workloads. The tech giant also announced the general availability of Azure ND GB200 V6 virtual machines accelerated by NVIDIA's Blackwell platform, substantially boosting AI computing capabilities for customers. On the enterprise front, Microsoft and SAP launched the RISE with SAP on Microsoft Azure Global Acceleration Program to help organizations transition seamlessly to the cloud. Microsoft formed a $1 billion, seven-year partnership with WSP Global to accelerate digital transformation in the architecture, engineering, and construction industry, further extending its AI ecosystem reach into specialized sectors. Valuation Considerations and Market Performance Microsoft has outperformed the Zacks Computer & Technology sector with a 2.8% growth in the year-to-date period. Shares of Alphabet, Nvidia and Amazon have declined 13.7%, 15.9% and 14.9%, respectively, during the same period. Microsoft Outperforms Sector, Peers The stock's current valuation of 10.49 times forward sales appears to fully account for near-term growth potential, exceeding the Zacks Computer - Software industry average of 8.78 times. MSFT's P/S F12M Ratio Depicts Stretched Valuation However, Microsoft's third-quarter results demonstrate that its AI investments are beginning to translate into tangible financial benefits, suggesting potential for valuation expansion as these initiatives mature. The company's ability to monetize AI across its diverse business segments provides multiple growth vectors that could drive future stock appreciation. Financial Performance Demonstrates AI-Driven Success Microsoft's financial results tell a compelling story of AI-driven growth. Total revenues reached $70.1 billion, up 13% (15% in constant currency) year over year. Operating income grew 16% to $32 billion, while diluted earnings per share rose 18% to $3.46, exceeding analyst expectations. The Microsoft Cloud segment generated $42.4 billion in revenues, growing 21% (22% in constant currency), demonstrating the company's cloud dominance. Commercial bookings increased 18% (17% in constant currency), with strong execution across core annuity sales motions and Azure commitments from key partners like OpenAI. Investment Outlook: Azure's AI Dominance Signals Buy Opportunity Microsoft's stellar third-quarter results and continued investments in AI position the company as a frontrunner in the AI race. With Azure's AI services contributing significantly to growth and the company's expanding partnerships with industry leaders, Microsoft is well-positioned to capitalize on the accelerating enterprise AI adoption trend. The company's strong execution across its AI portfolio, combined with robust financial performance and strategic vision, presents a compelling investment case. For investors seeking exposure to transformative AI technology with the safety of a financially sound industry leader, Microsoft's third-quarter results signal that Azure's AI momentum is poised to generate substantial long-term shareholder value. Microsoft currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report
Business Insider
06-05-2025
- Business
- Business Insider
‘Microsoft Stock Deserves a Street-High Target,' Joel Fishbein Says Following Earnings
Microsoft (NASDAQ:MSFT) has reclaimed the crown as the world's most valuable company. While it has often swapped places with Apple, the tech giant had recently fallen behind – until now. Its latest quarterly results have reignited investor enthusiasm, propelling Microsoft back to the No. 1 spot. Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. The March-quarter (F3Q25) results didn't just exceed expectations, they put to rest fears the company will suffer against the current uncertain macro backdrop. Microsoft Cloud delivered once again, accompanied by a forecast that underscores the growing demand for AI. Microsoft Cloud generated $42.4 billion in revenue, up 20% y/y and above the $42.22 billion estimate. Revenue from the Intelligent Cloud segment reached $26.8 billion, outpacing the forecast of $25.99 billion. Azure and other cloud services – key indicators watched closely by investors and analysts – grew 33% (35% cc), beating the 31% estimate. Total revenue rose 13% year-over-year to $70.1 billion, outperforming the $68.44 billion expected on Wall Street. That came off the back of a 12% y/y increase in the previous quarter. EPS reached $3.46, exceeding the consensus estimate of $3.22. Looking ahead to FQ4, fueled by robust demand across its range of services, Intelligent Cloud revenue is expected to land between $28.75 billion and $29.05 billion, with Azure revenue growth expected at 34% to 35% in cc. Overall, total revenue is expected to range from $73.15 billion to $74.25 billion, above consensus at $72.26 billion. In the wake of these results, recession fears and tariff talk took a back seat – at least temporarily – as analysts rushed to praise Microsoft's performance. Truist's Joel Fishbein, who ranks amongst the top 3% of Wall Street stock experts, is no expectation. 'Microsoft delivered impressive results in their 3Q25 earnings report,' the 5-star analyst said. 'Azure growth beat the high end of guidance, as the company saw a rebound in performance across non- AI workloads. AI performance continued its momentum as well, driven by some capacity coming online earlier than expected, contributing 16 percentage points to Azure growth. We believe that the positive traction in AI could lead to a sustained Azure reacceleration as new resources come online in FY26.' Bottom line, Fishbein backs MSFT with a Buy rating and a Street-high $600 price target, implying the stock could climb another 38% from current levels. (To watch Fishbein's track record, click here) Elsewhere on the Street, MSFT claims an additional 28 Buys and 5 Holds, all coalescing to a Strong Buy consensus rating. The shares are expected to post 12-month growth of 16%, considering the average price target stands at $506.31. (See MSFT stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Globe and Mail
04-05-2025
- Business
- Globe and Mail
Analysts Say Microsoft Stock Offers a ‘Safe Harbor' for Tech Investors. Should You Buy MSFT Now?
In the face of persistent macroeconomic challenges, Microsoft (MSFT) has proven its mettle, delivering an impressive earnings report for the third quarter of its fiscal 2025. The company's stellar performance was driven primarily by the continued strength of its cloud business, fueled by the surging demand for artificial intelligence (AI) services. Following the announcement, investor sentiment soared, with MSFT shares gaining nearly 7.6% the next day. While the stock has not yet shown dramatic gains in 2025, optimism remains high on Wall Street regarding its potential. Oppenheimer applauded its quarterly performance and the growing traction of Azure and AI. The firm highlighted the tech giant's strategic edge in enterprise IT, noting that Microsoft's footprint across productivity solutions continues to set it apart. Oppenheimer analysts have positioned the company as a relative 'safer harbor' amid the turbulence in the software sector. About Microsoft Stock Microsoft (MSFT), nestled in Redmond, Washington, has long held court as a titan in the tech world. With more than 80% share of the global PC operating system market, the company has etched itself deep into the foundation of modern computing. Its Microsoft 365 suite continues to be a go-to solution for productivity, relied upon by businesses and individuals across the globe. Over the past 52 weeks, MSFT has logged a gain of 9.3%. At present, the stock is trading at 30.3 times forward adjusted earnings and 12 times sales. The figures suggest a premium when held against industry peers. However, when lined up against its own five-year average multiples, it seems like a potential bargain. Microsoft Surpasses Q3 Earnings On April 30, Microsoft unveiled its fiscal 2025 third-quarter earnings, which surpassed analyst expectations. The tech behemoth reported revenue of $70.07 billion, representing a 13% increase from the same period last year. The figure surpassed analyst expectations by a solid $1.64 billion. Azure and other cloud services proved to be the linchpin once again, registering a 33% year-over-year increase, handily beating company guidance. Oppenheimer noted that third-quarter Azure growth and guidance exceeded buy-side expectations by 400 basis points, underscoring the momentum in AI-related workloads. Microsoft's profitability also impressed, with operating margins reaching 45.7%, up 108 basis points from a year earlier. Net income stood at $25.8 billion, translating into earnings of $3.46 per share, well ahead of the $3.22 per share expected by the Street. Looking to the road ahead, the outlook for Microsoft's fiscal fourth quarter carries a confident tone. Oppenheimer anticipates Azure to grow 34% to 35% in constant currency, while Intelligent Cloud revenue is projected to come in between $28.75 billion and $29.05 billion, both figures running ahead of consensus. The Productivity and Business Processes segment is forecast to generate between $32.05 billion and $32.35 billion, again surpassing estimates. While there were a few soft spots, including higher-than-anticipated capital expenditures and slower growth in Microsoft 365 Consumer seats, the broader narrative remains favorable. The firm emphasized Microsoft's ability to expand its footprint in the hyperscale market and capitalize on the ongoing generative AI cycle. Looking at earnings expectations, the Street forecasts Microsoft's EPS to rise 11.9% in the fourth quarter to $3.30. For the full fiscal year 2025, EPS is expected to climb 10.9% year over year to $13.09. The growth trajectory appears intact as projections for fiscal 2026 point to a 12% increase in EPS, bringing it to $14.66. What Do Analysts Expect for Microsoft Stock? Wall Street is wearing its bullish hat, and the optimism is hard to miss. The stock has earned an overall 'Strong Buy' consensus, a telling sign of the Street's conviction. Among 45 analysts, a commanding 37 have issued a 'Strong Buy,' while four lean toward a 'Moderate Buy.' The remaining four are taking a more cautious route, opting for a 'Hold.' The average price target of $490.82 represents potential upside of 15.4%, while the Street-high target of $600 signals a possible surge of 41% from current levels. In a market that often moves on whispers, this level of consensus speaks volumes.
Yahoo
03-05-2025
- Business
- Yahoo
Zacks Investment Ideas feature highlights: Boston Scientific, Meta Platforms and Microsoft
Chicago, IL – May 2, 2025 – Today, Zacks Investment Ideas feature highlights Boston Scientific BSX, Meta Platforms META and Microsoft MSFT. The 2025 Q1 earnings cycle is in full swing, with many companies on the docket to reveal quarterly results in the coming weeks. Guidance is a key factor in this cycle, more so than we've seen in recent periods due to the overall level of uncertainty brought about by recent tariff announcements and other economic developments. So far, several companies, including Boston Scientific, Meta Platforms and Microsoft, have all delivered positive results, with each seeing a bullish share reaction post-earnings. Let's take a closer look at the positivity. Boston Scientific exceeded both top and bottom line expectations handily, delivering a strong 12% EPS beat alongside sales that were 2.3% ahead of expectations. Upgraded current-year guidance has provided a notably bullish outlook, with the stock also now sporting a coveted Zacks Rank #2 (Buy). Analysts have adjusted their current year sales and EPS expectations accordingly following the favorable print, with BSX expected to see 16% EPS growth on 17% higher sales. The stock sports a Style Score of 'B' for Value. Strong segment performance has aided the company's bright outlook, leading to the above-mentioned guidance upgrade in an overall uncertain environment. Meta Platforms continued to fire on all cylinders throughout its latest period, again exceeding our consensus EPS and sales expectations handily and posting strong growth. Sales grew an impressive 16% year-over-year thanks to strong Advertising results, which totaled a solid $41.3 billion. Notably, the company's average price per ad climbed 10% year-over-year, with its family daily active people (DAP) also seeing a 6% move higher year-over-year. The company's user base growth has continued to be outstanding, providing many clear benefits. Concerning headline figures in Microsoft's release, EPS of $3.46 and sales of $70.0 billion both handily exceeded our consensus expectations, continuing its recent streak of better-than-expected results. Sales grew an impressive 13% year-over-year, whereas EPS climbed 18%. Unsurprisingly, Microsoft Cloud and AI strength drove the strong results, with Microsoft Cloud revenue soaring 20% year-over-year to $42.4 billion. Demand has remained strong for the tech titan, with commentary alluding to the trend remaining for years to come. Importantly, its Intelligent Cloud (includes Azure) revenue totaled a strong $26.8 billion, up 21% from the year-ago period. The Intelligent Cloud results snapped a small streak of misses on the metric. The 2025 Q1 cycle continues to roll along, with all three stocks above seeing a nice move higher following their respective quarterly releases. Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@ Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Boston Scientific Corporation (BSX) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
