Tech giant Microsoft presented the data for the past quarter yesterday after the market closed. Earnings looked good, but guidance is tough and cloud business growth is slowing.
Microsoft’s numbers at a glance
The market initially ignited a 2-hour rally after the trading day and thus saw the increase in sales in the cloud business. But then came the disappointment.
The numbers at a glance:
- EPS: $2.32 vs. $2.30 (expected)
- sales volume: 52.27 billion USD vs $53.12 billion (estimated) – forecast $52.4-53.4 billion
- margin: 66.8% – previous year 67.2%
- cloud sales: $21.5 billion – up 18%
- personal computers: $14.2 billion – down 19%
The forecast for the March quarter is as follows:
- cloud growth 17%-19% or $21.7-22 billion vs. $22.2 billion.
- Azure cloud service – a further drop in growth by 4-5 percentage points
- PC paragraph is also expected to be lower
Microsoft on the chart
From a technical perspective, Microsoft stock has performed quite well. Selling from the 52-week high of just over $295.00 to the November 2022 low amounts to a good 28 percent. From that bottom of around USD 214.00, the stock has meanwhile managed to fight back above the USD 260.00 mark.
But it remains difficult to sustain the upward trend in the long term. Recently there have been repeated losses around the swing zone at a good 240.00 USD. If the bounce above this level holds, Microsoft initially has room for further gains to the December high of $260.00. However, if the market remains skeptical about the future, the two more recent intermediate lows at just below $230.00 and $220.00 should represent possible orientation levels on the bottom of the chart.
In addition to short-term trading opportunities in Microsoft in response to the numbers, the following topics are on the agenda for today’s program:
- 00:00 Introduction
- 00:34 Microsoft numbers plus basics and news
- 09:50 Microsoft Graph Analysis
- 27:35 Gold
- 32:35 DAX
- 49:50 silver
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Best wishes for successful trading
Yours Mike Seidl
with more than 2,200 merchants: Inside
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