NASDAQ MSFT reported strong quarterly results and revenues and revenues significantly exceeded analyst expectations. Despite the rapid pace, stocks react only slowly to investors and are traded almost unchanged outside business hours. There are two reasons. First, it appears that the good results have already been incorporated into stock prices, with stocks trading at multiples of the peak selling. Second, the company made slightly weaker-than-expected forecasts for the second quarter.
The capabilities of artificial intelligence are also reflected in making Custom Computers. Artificial intelligence offers new ways to personalize the experience in real time, to make the interface with customers more fluid, and to enable personalized content and customer journeys. By distributing the software on CD, customers have either downloaded the software or used it as a SaaS platform for much enterprise software.
Customers began “leasing” the software through a subscription business model rather than buying it as a unit-cost transaction. However, stock prices have been on the rise for some time and if the market starts to rise, Microsoft will likely move on. If the stock price rises above $ 216, it could reach an all-time high of around $ 231. However, if $ 216 does not break through the resistance, the stock price could drop further, possibly around $ 198. The Relative Strength Index is on a downtrend, indicating that the upward momentum is leaving the market.
Unfortunately, in a growing valuation environment, more than solid quarterly results are needed to keep stocks rising. In this case, the investor can wait a moment and bring the company to the evaluation dictated by the market. Basically, NASDAQ MSFT raised the P / E to 32.99 and overestimated the dividend yield by 1.09%.
Future prospect of NASDAQ MSFT
When I talk about the low point, of course, I mean the period of the previous quarter (which was still characterized by an incredible 47% annual growth rate). So this is hardly worrying at all, and the new market focus on tech theatres’ ability to power the coronavirus-affected macroeconomy will generate much better growth rates in these areas in the coming quarters. There’s a possibility. The company’s Intelligent Cloud division (a combination of GitHub products, Microsoft Enterprise Services, Windows Server and SQL Server, and Azure Cloud products) reported sales of nearly $ 13 billion. Not only did this exceed analysts’ estimates, but it also shows an annual growth rate of 20%. Ultimately, this shows that Microsoft is still ahead of widespread expectations and these trends may continue in the quarters to come. Before investing in this stock, you need check its cash flow at https://www.webull.com/cash-flow/nasdaq-msft.
Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.