Microsoft stock moves higher in premarket after upbeat earnings

11:54 am 26 January 2022

Microsoft (MSFT.US) stock rose more than 1% in premarket after the software giant posted solid quarterly results and strong guidance for the current quarter. 

  • Adjusted earnings: $2.48 per share vs. expected $2.31 per share (21% increase from last year) 
  • Revenue: $51.73 billion, vs. expected $50.88 billion (20% increase from last year)  

Microsoft revenue by major product lines: Source:  Geekwire

  • Microsoft Cloud revenue rose 32% to $22.1 billion for the quarter
  • Gaming revenues were up 8% while Xbox content and services revenue increased 10%. The gaming component became more relevant to investors this month, when the company announced plans to acquire Activision Blizzard, 
  • Sales of Windows licenses increased by 25% in the fourth quarter of 2021.Overall, Windows 10 and Windows 11 is now powering 1.4 billion monthly active devices.
  • Microsoft's Productivity and Business Processes unit saw sales rise 19% to $15.9 billion. LinkedIn revenue rose 37% to $3.5 billion
  • Company expects revenue of $48.5 billion to 49.3 billion in the fiscal third quarter, topping the $48.23 billion Refinitiv consensus and expects full-year operating margins to widen slightly.

Microsoft (MSFT.US) stock initially fell 5% on the earnings report but turned positive after the company gave guidance on its call with analysts. Currently the price is testing 200 SMA (red line). Should break higher occur, next resistance is located at $300.00 and coincides with 23.6% Fibonacci retracement of the upward move launched in March 2020. Source: xStation5

The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.

Share:
Back

Join over 1 600 000 XTB Group Clients from around the world.