What To Expect From Microsoft Today

Microsoft
MSFT
Inc. is scheduled to report earnings after today’s close. The stock hit a record high of $349.67/share in 2021 and is currently trading near $281/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:

Earnings Preview:

The company is expected to report a gain of $2.22/share on $51.03 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $2.26/share. The Whisper number is the Street’s unofficial view on earnings.

A Closer Look At The Fundamentals:

Microsoft is one of the leaders in Artificial Intelligence. The company is a key investor in OpenAI, the parent of ChatGPT, and that could be a major game changer going forward to its bottom line.

A Closer Look At The Technicals:

Technically, the stock bottomed in November 2022 and is up over 30% since then. The bulls want to see the stock rally after reporting earnings and the bears want to see it gap down and fall. It will be interesting to see what happened last quarter since Microsoft integrated ChatGPT into Bing which could have a big impact.

Pay Attention To How The Stock Reacts To The News:

From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.

Disclosure, the stock has been previously featured in my FindLeadingStocks.com newsletter.