Microsoft’s stock rose 7.6% on Thursday, its second-largest post-earnings jump since 2015, after the tech giant’s quarterly results beat Wall Street estimates. The company’s cloud-computing revenue surged to $27 billion, driven by faster-than-expected growth in its AI and Azure platform.
CFO Amy Hood noted that AI demand continued to outstrip supply, tempering fears of macroeconomic uncertainty slowing down AI growth. Microsoft’s cloud computing unit saw sales rise 22% year-over-year, while productivity and business software revenue grew double digits.
The company’s Azure business, a key driver of growth, accelerated to 35% year-over-year growth, ahead of analyst forecasts. This news helped to lift stocks in the AI sector, which had fallen from their record highs earlier this year.
Analysts are now even more bullish on Microsoft, with BMO raising its price target to $485 and Bank of America Securities increasing its target by 7% to $515. Mizuho Americas analysts also raised their price target to $500, citing improved Azure growth and the company’s strong revenue growth opportunities.
Source: https://www.investopedia.com/why-microsoft-stock-had-one-of-its-best-post-earnings-days-in-a-decade-11726613