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Microsoft Inc - Daily

By Minipip
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Microsoft - Daily - Strong numbers and strong forward guidance means the stock is up 4% after hours.

Overview

Earnings for MSFT were released yesterday evening at just gone 9pm. The stock initially fell but has since recovered about 4%. An overview of the financials are below. Its been a good quarter for the stock despite the negative comments around Wall Street.

Financials

The financials are good as you would expect. Total market cap sits at $2tr with Q1 2022 revenue at $45.6bn (up 22% YoY) with a profit after tax of $20.5bn (up 24% YoY). Total assets sat strong at $335bn with cash making up around $130bn of that. Total liabilities have also shrunk $183bn from $191.7bn. This leaves Microsoft better from a Debt to assets point of view.

Technicals

From a technical aspect the stock looks supported. The floor for Microsoft is about $260. A break below here on the daily or weekly timeframe could signal a further decline. Towards the upside, initial targets are $303 followed by $314 and then trendline resistance at $322. Technical indicators suggest a neural bias (RSI reads 43).

Summary

Comment – Overall the numbers Microsoft have produced over Q1 2022 are very good. With tightening monetary policy and higher inflation the company has been able to lower its debts, increase revenue, profit and seem postive on forward guidance. This is what any investor would want to see and as a result I think this will have a positive effect on the company. Hopefully Apple & Meta can follow. Buying at its current price would not be a bad thing and even if the stock continued to fall, it will at some point most likely recover – look at the long term chart. The world cannot function without Microsoft services and its important for investors to understand this. The stock is down 22% from its highs. However, the world could function without Netflix stock, hence when this share keeps continuing to fall.


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