As Microsoft prepares to release its quarterly earnings, Wall Street analysts are divided on the stock’s immediate outlook. The share price has recovered about 20% from March lows to approximately $427. Technical analysts point to a strong chart reclaiming key levels, while others highlight concerns over Microsoft Azure growth targets, contrasting with a bullish consensus price target range up to $645.
Microsoft stock trades near $427 ahead of its upcoming earnings report. The share price has climbed approximately 20% from its lows in March.
Evercore ISI chief technical analyst Rich Ross stated the stock has one of the “best acting charts” in the tech sector. He noted it reclaimed its 50-day moving average with “authority.”
Wedbush tech analyst Dan Ives said, “The Street continues to underestimate the Azure growth story in our view with an AI-driven shift about taking place in Redmond.” Most analysts agree on the company’s growth potential, with Bernstein setting a price target of $645.
Conversely, Guggenheim’s John DiFucci believes the fiscal third quarter could be a “mixed bag” for MSFT. He centers his concerns on risks to Microsoft Azure’s growth rate.
Wall Street expects Azure to post 37% to 38% constant-currency revenue growth. DiFucci considers that expectation to be set too high.
However, with the technical setup improving, a positive sentiment shift could emerge. The stock is viewed as one of the more underrated options among its Magnificent 7 rivals.
