Microsoft (MSFT) Q3 Earnings Analysis:
Microsoft shares are surging after their third quarter earnings topped expectations amid strong demand for artificial intelligence computing. The company reported revenue of $56.5 billion for the quarter, an 11% jump from the same period last year. Microsoft noted their cloud computing business, Azure, which posted 29% growth. More importantly, the company posted revenue projections for Q4 at $60.40-$61.40B, above analysts expectations of $58.67B. Traders and investors often use future guidance to determine if a stock is worth buying, and according to these earnings, Microsoft has earned itself a bullish outlook.
Technical analysis:
Microsoft shares climbed as high as 4% on the day after earnings, but buyers were unable to sustain the highs as markets sold off as a whole. The stock reached a high of 346.20, which makes that the resistance to watch for a breakout. Price target above that is 352.00. To the downside, the stock’s support is 337.00, a move below can start filling the earnings gap down to 332.00, and below 332.00, the next support is 323.00.