Microsoft exceeded Q4 earnings expectations with strong revenue and EPS, but Azure missing growth targets caused sell-off.

From Barchart: 2024-08-05 18:30:00

Microsoft closed its fiscal year 2024 with Q4 earnings that exceeded expectations, with revenue hitting $64.7 billion and earnings per share at $2.95, a 10% increase. Despite a sell-off due to Azure missing growth targets, the tech giant’s diverse portfolio shows strength across commercial and personal software, cloud services, and more.

With Azure’s AI segment showing strong demand outpacing capacity, Microsoft’s outlook remains positive. Analysts forecast 16% annual earnings growth over three to five years, but the stock’s high P/E ratio of 35 and a PEG ratio of 2.2 suggest it may be overvalued. Potential investors should weigh the risks and opportunities before buying shares in Microsoft.

The Motley Fool Stock Advisor points out Microsoft isn’t among their top 10 stock recommendations, despite its strong performance. Instead, they highlight other stocks with significant growth potential. With a proven track record of outperforming the S&P 500, Stock Advisor offers insights for investors looking to build a successful portfolio. Consider all options before investing in Microsoft or other high-growth stocks.



Read more at Barchart: Is Microsoft Stock a Buy Now?