Why Microsoft will hit new highs !
Microsoft's upcoming earnings report on Tuesday, July 30, is highly anticipated, with analysts projecting a strong performance. According to Visible Alpha, the company is expected to report a revenue of $64.37 billion, marking a 14.6% increase over the same period last year. The net income is forecasted to be $21.88 billion, or $2.93 per share, representing a 9.3% rise from the previous fiscal fourth quarter.
Microsoft has consistently demonstrated robust financial health, with its cloud computing division, Azure, playing a pivotal role in driving revenue growth. Additionally, the company's diversified portfolio, including productivity software, gaming, and hardware, continues to solidify its market position.
### Support and Resistance Levels
**Support Levels:**
1. **$380**: This level has shown to be a strong support, reflecting investors' confidence in Microsoft's long-term growth.
2. **$400**: A psychological level, as round numbers often act as support due to investor sentiment.
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**Resistance Levels:**
1. **$420**: The stock has faced resistance around this level in the past, indicating some hesitation among investors.
2. **$430**: This is the target price, where breaking above this level could signal a strong bullish trend.
### Is Microsoft at $430 a Buy?
Microsoft at $430 could be considered a buy for several reasons:
1. **Strong Financial Performance**: The projected revenue and net income growth indicate a healthy upward trajectory.
2. **Cloud Dominance**: Azure continues to be a major growth driver, with increasing market share in the cloud computing sector.
3. **Diversification**: Microsoft's broad product and service range, including its ventures into AI and gaming, provides multiple revenue streams.
4. **Market Conditions**: Given the broader market trends and the potential for a tech sector rebound, Microsoft is well-positioned to lead this
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