Tesla, Microsoft, Meta, IBM, Nvidia, Lam Research, Apple, and More Stock Market Movers
Written by Emily J. Thompson, Senior Investment Analyst
Source: Newsfilter
Stock Market Reactions: Stock futures rose as investors analyzed mixed earnings reports from major tech companies like Tesla, Microsoft, and Meta Platforms, with Tesla's shares increasing despite missing earnings estimates, while Microsoft's shares fell after Azure growth missed expectations.
Upcoming Earnings Reports: Anticipation builds for Apple's quarterly earnings report, with analysts predicting only a slight increase in iPhone sales, alongside other significant companies such as Intel and Visa set to release their earnings.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MSFT is 631.36 USD with a low forecast of 500.00 USD and a high forecast of 678.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 481.630
Low
500.00
Averages
631.36
High
678.00
Current: 481.630
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company that develops and supports software, services, devices, and solutions. Its Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. It comprises Microsoft 365 Commercial products and cloud services; Microsoft 365 Consumer products and cloud services; LinkedIn, and Dynamics products and cloud services. The Intelligent Cloud segment consists of its public, private, and hybrid server products and cloud services. It comprises server products and cloud services, including Azure, and enterprise and partner services, including Enterprise Support Services. Its More Personal Computing segment primarily comprises Windows and Devices, including Windows OEM licensing; Gaming, including Xbox hardware and Xbox content; Search and news advertising, comprising Bing and Copilot, Microsoft News, and Microsoft Edge.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Microsoft Azure Growth Falls Short of Expectations
- Performance Shortfall: Microsoft reported better-than-expected Q2 revenue and earnings; however, Azure's growth declined from 39% to 38% year-over-year, indicating a slowdown that may affect investor confidence.
- Analyst Rating Adjustments: Morgan Stanley removed Microsoft from its 'Top Pick' list while maintaining an 'Overweight' rating and a $650 price target, suggesting over 45% upside from the current price of $446.
- Market Reaction Fluctuations: Despite a 7.5% drop in stock price, retail sentiment on Stocktwits shifted to 'extremely bullish', reflecting confidence in Microsoft's future potential, even amid near-term pressures.
- AI Investment Direction Change: Barclays analysts noted that Microsoft's new AI capabilities are increasingly directed towards first-party products like Copilot, which may alter future growth expectations and impact overall market strategy.
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Meta's AI Investments Approved by Investors, Shares Surge 8%
- Meta's Stock Surge: Following a strong earnings report, Meta's shares jumped 8%, indicating investor approval of its AI spending plan of $115 billion to $135 billion, which is expected to drive future revenue growth.
- Strong Revenue Growth: Meta's reported 24% year-over-year revenue growth, primarily driven by online advertising, alleviated investor concerns about its high spending, demonstrating that its AI investment strategy is yielding results.
- Microsoft's Challenges: In stark contrast, Microsoft's stock plummeted 11% as its Azure cloud segment's growth slowed to 39%, coupled with a 66% surge in capital expenditures to $37.5 billion, exceeding analyst expectations and highlighting spending pressures in the AI sector.
- Capacity Constraints: Microsoft's CFO noted that Azure could have grown 40% if all new GPU chips had been allocated to its Azure business, reflecting a tight supply-demand situation that negatively impacted the company's overall performance.
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