Microsoft Corporation: NASDAQ MSFT stock price prediction, new and analysis

Microsoft Corporation: NASDAQ MSFT stock has experienced a challenging month, with its share price declining by 2.6%.

However, a closer look at the company’s strong financials suggests that the stock may have potential for long-term appreciation, as markets typically reward companies with solid financial health.

A Side-by-Side Comparison of Microsoft's Earnings Growth and 31% ROE

Microsoft boasts a notably high return on equity (ROE) of 31%, which is quite impressive. When compared to the industry average of 12%, this figure underscores the company's strong financial performance. This robust ROE likely contributed to Microsoft Corporation's moderate net income growth of 15% over the past five years.

However, when we compared Microsoft’s net income growth to the industry, we found it disappointing that the company's growth fell short of the industry average of 20% during the same period.

Microsoft Stock (NASDAQ MSFT) Drops on Outlook

Microsoft, the leading software company, has predicted a slowdown in sales growth for its Azure business in Q2, anticipating Azure revenue growth of 31% to 32% in constant currency for the December quarter.

Additionally, the company expects a sequential rise in capital expenditures this quarter as it continues to develop its AI data center infrastructure. Microsoft spent $20 billion on capital expenditures in the September quarter, aligning with estimates.

In after-hours trading today, Microsoft stock (NASDAQ MSFT) initially rose following better-than-expected results. However, shares fell after the company provided its fiscal Q2 outlook during a conference call with analysts. Recently, Microsoft stock was down 3.6%, trading at $416.85.

The stock has been consolidating for 17 weeks at a buy point of $468.35, according to IBD MarketSurge charts.

Recent Microsoft Stock (NASDAQ MSFT) Updates and News

11/25/2024
This morning, over 5,300 users reported issues with Microsoft 365, with 86% experiencing problems related to Outlook, 9% with Exchange, and 6% with SharePoint. Microsoft began implementing a fix around 9 AM EST and has announced that 98% of users have since regained access.

11/22/2024
Microsoft’s earnings outlook for the second quarter of 2025 has been lowered by Zacks Research. Analyst V. Sawalka now predicts earnings of $3.10 per share, down from the previous estimate of $3.19.

11/21/2024
Microsoft’s stock price fell 1% today, trading as low as $410.29.

11/20/2024
Next month, Michael Saylor, the former CEO of MicroStrategy, will present a Bitcoin adoption plan to Microsoft’s board of directors. Saylor is optimistic that Bitcoin could revolutionize Microsoft’s operations and potentially generate the company’s next trillion dollars in revenue.

11/19/2024
Microsoft announced a new application server at its 2024 Ignite conference today: the Azure AI Foundry, which aims to streamline AI development. Microsoft plans to do this by consolidating Microsoft’s diverse AI models, tools, safety measures, and monitoring capabilities into a single, integrated platform.

Microsoft (MSFT) Price Prediction and Forecast 2025-2030

Microsoft stock (NASDAQ MSFT) has been a wealth generator for decades, with a stock split-adjusted IPO price of just $0.14. At the current stock price of $417.10, this represents an astonishing increase of 428,569.06%. A $1,000 investment at Microsoft's IPO would now be worth approximately $4.29 million.

As one of the most valuable companies globally, investors are primarily concerned with Microsoft's future stock performance. While Wall Street analysts typically provide predictions for only one year ahead, long-term investors are interested in where Microsoft may stand several years from now.

At 24/7 Wall Street, we strive to share our insights and assumptions about the stock, analyzing the numbers coming from Microsoft and highlighting the markets where we see the most potential for growth.

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Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.