MSFT : All Hail The New Mega Cap King !
All Hail The New IT King.
On Fri, 02 May 2025 - $Microsoft(MSFT)$ stock’s jump following a strong earnings report for its Q3 2025, helping to push the company past Apple to become the largest in the US by market capitalization.
Microsoft now has a market cap of $3.24 trillion, beating Apple’s $3.07 trillion. The software company gained +$322.8 billion in market cap for week ending 02 May 2025, while Apple lost -$58.7 billion.
Microsoft reported better-than-expected earnings and revenue after the stock market closed on Wed, 30 Apr 2025. (see below)
MSFT - Q3 2025 Earnings.
Microsoft’s actuals in comparison with LSEG consensus:
Earnings per share (diluted):
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Came in at $3.46 vs $3.22 expected vs Q3 2024’s $2.94; that’s up +18% YoY.
Revenue:
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Came in at $70.07 billion vs $68.42 billion expected vs Q3 2024’s $61.86 billion, that’s up +13% YoY.
Other core numbers - Cloud Computing:
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Also lifting the stock was a strong performance of MSFT’s Azure cloud-computing business. Revenue increased +33%, a pickup from the prior quarter’s 31% growth.
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In contrast, $Amazon.com(AMZN)$ web services (AWS) quarterly growth was a +17.01% YoY, losing out to MSFT, percentage wise.
Guidance / Outlook:
During earnings’ conference call, MSFT Management said they expects Azure’s Q4 2025 revenue growth to be about +34%, sweetest music to Wall Street traders.
This was again in contrast to other Mag 7’s CEO who refused to dwell too much on current quarter guidance, due to uncertainty brought about by heightened trade tariffs.
According to CFRA Research, Analyst, Angelo Zino :
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He believes MSFT’s software-driven business model will remain resilient during uncertain times.
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Software businesses have shown resiliency in recent weeks as companies choose to continue to spend on the tech despite economic uncertainty.
Stock Movement.
Shares of Microsoft have risen +10% since the company reported its earnings on 30 Apr 2025. (see below)
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On 01 May 2025, MSFT jumped sharply, closing up over +7.6%, as investors responded positively to the results and analysts raised price targets amid optimism about AI-driven growth.
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On 02 May 2025, MSFT rally continued with the stock rising another +2.3% to close at $435.28, reaching a new 2025 high and approaching its all-time high.
For now, Microsoft is gaining because investors see it as more protected from the levies’ direct effects than Apple, Amazon, Tesla - its Mag 7 peers.
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Do you think MSFT’s Q3 2025 earnings are more spectacular than other Mag 7s ?
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Do you think MSFT have more room to grow & manoeuvre, going forward ’?
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