- Microsoft beats revenue estimates by $1.3 billion.
- MSFT average price target rises to $351.95.
- The software giant stock has traded within ascending trend channel all year.
Microsoft did what it typically does, beating Wall Street estimates for the first fiscal quarter of 2022 on Tuesday after the market closed. Non-GAAP earnings per share (EPS) came in at $2.27, comfortably above expectations of $2.08. Revenue came in at $45.3 billion, above analyst consensus of $44 billion, for a 22% gain YoY.
Cowen & Co. raised their target from $320 to $360; BMO, from $325 to $355; and Mizuho, from $350 to $360.
Great report from $MSFT across the board.— Brad Freeman (@StockMarketNerd) October 26, 2021
Top line beats with all 3 core demand segments strong.
Azure growth accelerates YoY.
Profit well ahead of expectations.
14% dividend/buyback growth. https://t.co/O9JmmXf9Mp
Microsoft Stock Technical Analysis: Next target is R4 Pivot
With analysts’ price targets rising in unison, investors can expect MSFT to appreciate in the near term. Looking at the daily chart, one notices immediately that the premarket price at $315.10, up 1.6% at the time of writing, is already above the R2 pivot point at $313.35.
MSFT shares have been trading mostly inside an ascending parallel price channel since the start of the year. Having tagged the bottom trend line on October 4 at $280.25, Microsoft stock has risen through the midline and now looks to the top line near $330.
That price is also near the R4 pivot point at $329.50. First, however, MSFT would need to surmount the R3 at $321.46. With the current average price target of $351.95, this should be easy as cake.
MSFT 1-day chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.