To The Moon

Interesting graphics ?

Are your eyes always darting around, looking for “interesting” post/s — when you are ready to read about the latest on the US market?

Mine do because after a while, the “hot” topics are usually the ones that are covered to “death” by the media, leaving very little coverage for other US stocks.

This week being the “Mega Cap” stocks’ reporting week, most of the coverage centred squarely on $Tesla Motors(TSLA)$ whether we like it or not.

Not to mention, the CEO always find the time to keep the spotlight on himself.

So it was refreshing to find a post on $Microsoft(MSFT)$ with a captivating title as well. (see below)

Tech Stock with AI Focus

Microsoft, once known mainly for its computer operating systems, is now a leader in artificial intelligence (AI) software and services.

While upcoming earnings reports can create some jitters, Microsoft remains a good long-term investment, as long as an investor do not put too much money into it at once.

CEO, Satya Nadella, mentioned that MSFT have gone beyond talking about AI, to applying them extensively, including integrating AI into all MSFT technology products.

By owning Microsoft stock, investors are directly invested in some of the best AI-powered products in the market.

Global Push in AI & Cloud

It is an opened secret that Microsoft is spending to grow its AI and cloud computing business in Europe, especially in the UK, Germany, and Spain.

Their next target seems to be Japan, with a planned investment of $2.9 billion over the next 2 years.

MSFT is doing this to stay ahead of competition.

Expanding their cloud and AI infrastructure seems like a smart move, prepping for the future.

Of course, there will always be associated “risk” when the project runs into billions of dollars.

Q3 2024 Earning - Forecast.

On Thu, 25 Apr 2024, MSFT will report their Q3 2024 financial results.

Wall Street's forecast

To date, analysts have the following estimates: (see above)

• Revenue: come in at $60.87 billion, representing an increase of +15.15% YoY.

• Earnings per share (EPS): is expected to be $2.84 per share, an increase of +15.92% YoY as well.

*Note: estimates are actually a bit lower than MSFT’s Q2 2024’s results,

To top it off, analysts also expected to show slower revenue growth in the cloud business.

Even with these lower expectations, Microsoft could still surprise everyone with better results.

What Else To Watch Out ?

• Azure: Guidance is for flat growth sequentially. Even one point of acceleration would have a positive impact on the stock price.

• Artificial intelligence: New products or monetization opportunities, with news of growth in (a) dollar amount or (b) growth rate impact from AI.

• Office 365: This has been an important growth driver over the last few years, so it remains important even if it’s overshadowed by AI.

• Other areas to watch: Updates on (1) Activision, (2) general commercial demand, (3) continued recovery in LinkedIn and (4) Ad revenue from Bing search engine.

How Much To Own?

Here’s analyst Louis Navellier’s viewpoints & suggestions:

• MSFT is a strong tech company that can handle most challenges.

• Do not panic and sell your Microsoft shares just because of the upcoming earnings report.

• Be mindful, not to invest too much money in any single stock.

• If investors own index funds, these may have in Microsoft in its holdings. If so, consider adding a few more shares, for more exposure to AI and cloud technology.

My viewpoints: (mine & mine only)

• Overall, agree with what Louis Navellier mentioned but am still wondering if MSFT is overpriced.

• Due to the AI-hype in Q4 2023, any stock in US stock market, labelled "AI" have skyrocketed.

• When US’s March inflation remained persistent (3.8%), US stocks fell as fears of returning inflation spooked both institution and retail investors.

• AI-laced stocks were not spared either.

• In just one month, MSFT has lost -6.73% from its 11 Apr 2024’s peak ($427.93).

MSFT latest earnings will determine the direction this IT giant: (a) rising higher back to $420 per share or (b) driving lower to next support level of $360-380,

Must Read: Click on below titles to access. Give a like & help to Repost ok. Thanks.

• META GOOG MSFT Earnings Save US Market ?

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• Do you think Microsoft Q3 2024 results will be better than last quarter’s ?

• Do you think Microsoft will continue to rise, despite a lower set of earnings ?

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