Microsoft Earnings Preview: Can AI, Azure Fuel a Beat to Stem the Tech Bleeding?

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Stocks Analysis by Investing.com (David Wagner) covering: Microsoft Corporation. Read Investing.com (David Wagner)'s latest article on Investing.com

After several disappointing results from major technology companies, MSFT's release will be closely watched.) earnings report next week takes on added significance after the recent pessimism that stemmed from disappointing reports from other members of the Magnificient 7.) stocks faced a selloff following the earnings release, and that means the next titan to report, Microsoft, faces greater scrutiny.As far as the main figures are concerned, the analyst consensus is for EPS of $2.

In this regard, analysts at Goldman Sachs) forecast Azure revenues of $37.2 billion for the quarter to be reported next Tuesday."We believe that share gains in Azure and leadership in could continue to put Microsoft on a distinct trajectory as long as we are in the infrastructure-building phase of the generative artificial intelligence cycle."

The company could indeed provide updates about its Windows PCs designed for AI workloads, and how the new devices are expected to affect Microsoft's IT business. The 52 analysts surveyed by InvestingPro who track Microsoft shares have an average target price of $497.01, i.e. 15.8% above yesterday's closing price.On the other hand, valuation models call for caution. Indeed, the InvestingPro Fair Value, which calculates an intelligent synthesis of 14 recognized valuation models, stands at just 412.82, or 3.7% below the current price.

 

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