The first member of the 4-comma club (>$1 trillion in market value), Microsoft MSFT, is preparing to release its quarterly report on Wednesday (July 22nd) after the bell. MSFT is trading right off its all-time highs (which it hit earlier this month) as investors brace themselves for this highly anticipated report.
The company was one of the rare enterprises to provide guidance for its fiscal Q4 (June ending quarter), which has given investors added confidence in their equity position, especially considering the business has beaten top and bottom-line estimates for 14 quarters straight.
Analysts are incredibly optimistic about the COVID tailwind that has ostensibly filled Microsoft’s sails this past quarter, supplying the markets with the most massive top and bottom-line estimates in the company’s history. According to Zacks Consensus estimates, MSFT is expected to report an EPS of $1.39 on sales of $36.6 billion.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Should We Hold The Stock Through Earnings?” data-reactid=”15″>Should We Hold The Stock Through Earnings?
I will be maintaining my MSFT positions because of its leadership standing in innovation-driving cloud-computing and essential software. MSFT was the largest publicly at the turn of the century. Its consistent technological drive to stay ahead of the innovative curve has propelled Microsoft market value over $1.5 trillion, making it the largest software company in the world two decades later.
MSFT is battling it out with its 4-comma club cohorts, Apple AAPL, and Amazon AMZN, to obtain a firm market value lead on US exchanges.
There is no doubt that Microsoft will continue to provide the world with the most cutting-edge cloud software for a more productive economy and society.
My concerns about MSFT remain short-term. These shares have run up about 60% from their March lows and 33% year-to-date. I am concerned that investors will pull profits once they see what they want (or don’t want) from this earnings report and subsequent call. This would only cause short-term volatility with the long-term thesis remaining intact. Still, I wouldn’t add to my position going into these results.
Microsoft Corporation Price, Consensus and EPS Surprise
Microsoft Corporation price-consensus-eps-surprise-chart | Microsoft Corporation Quote
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The Takeaway” data-reactid=”33″>The Takeaway
Be cautious with your trading activity as big tech starts releasing June quarter reports. Many tech stocks have seen parabolic returns in the past quarter. These gains are going to be tested in the coming weeks. Below are the key earnings releases to watch over the next couple of weeks.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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” data-reactid=”42″>Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>
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Microsoft Corporation (MSFT) : Free Stock Analysis Report
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Zacks Investment Research” data-reactid=”43″>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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