Microsoft FY2023 Q4 Results Announcement and Forecast - Expert Analysis

Directory:

Part 1: Availability of MSFT Microsoft Top10 Organisations

Part 2: MSFT 2024Q2 Financial Report Review and Analysis

Part 3: MSFT 2024Q2 Financial Forecast and Analysis

Part 4: How to Buy MSFT Microsoft Shares in Hong Kong

Part 1: MSFT Microsoft Top10 Organization Holdings, March 25th, 2024

Microsoft's stock has shown a certain upward trend recently, according to the institutional holding data provided. As can be seen from the increase in the holdings of most institutions, institutional investors have increased confidence in the stock. In particular, the rise of top institutions such as Pioneer, BlackRock and Wealth shows that the market remains optimistic about Microsoft's prospects. However, there has also been a decrease in the holdings of individual institutions such as the Prudential Group and Northern Trust Global Investments, which may indicate that the market's view of the stock is not entirely consistent. Overall, the positive move in institutional holdings supported Microsoft's steady rise in its share price.

Part 2: MSFT 2024Q2 Financial Report Review and Analysis

1. MSFT Microsoft 2024Q2 financial indicators and historical data analysis

• MSFT Microsoft 2024Q2 Revenue

Looking at revenue data for the past five fiscal quarters, Microsoft has shown a steady growth trend. In particular, actual revenue in the last two quarters exceeded market consensus expectations, which may reflect the company's operating efficiency and market demand that exceeded analysts' initial estimates. The year-over-year revenue growth rate also increased quarter-on-quarter, indicating that the company has achieved significant results in expanding market share or improving product pricing strategies. This positive earnings trend could strengthen investors' confidence in Microsoft's future prospects and provide support for the share price. However, investors also need to be wary of the sustainability of income growth, especially in the face of uncertainty in the macroeconomic environment. In the long run, Microsoft is expected to attract more investor attention and drive the share price higher if it continues to grow revenue and outperform market expectations.

• MSFT Microsoft 2024Q2 Earnings Per Share (EPS)

Based on Microsoft's earnings per share (EPS) data for the past five fiscal quarters, the stock's performance showed a marked trend. If EPS continues to show positive growth, this tends to attract investor confidence, driving stock prices higher. Conversely, if EPS falls below expectations, market concerns about future profitability may cause stock prices to fall. Year-over-year (YoY) EPS reflects the long-term trend of a company's profitability. If the value shows growth, it indicates that the company has improved compared to the previous fiscal year, which is often interpreted by the market as a positive signal. Investors should consider the impact of EPS data on the future movement of stocks while keeping an eye on industry trends as well as the macroeconomic environment to make a more comprehensive judgment on future market sentiment.

• MSFT Microsoft 2024Q2 Gross Margin (GPM)

From Microsoft's gross margin trends over the past five fiscal quarters, the stock's productivity is improving. The quarter-on-quarter growth in gross margin, especially compared to the same period last year, indicates that the company has made progress in managing costs and increasing sales prices. Despite a slight decrease in gross profit in the recent quarter, year-on-year growth remained positive. This steady growth trend can provide investors with peace of mind as it shows the company's continued profitability and strong market competitiveness. In the long run, Microsoft's share price and market performance could be positively impacted if it is able to maintain or increase its gross margin, particularly above the industry average. Investors may view this trend as an indicator of a company's long-term financial health and may adjust their investment strategy accordingly.

• MSFT Microsoft 2024Q2 Net Interest Rate (NPM)

Based on Microsoft's net interest rate trends over the past five fiscal quarters, the stock's performance can be clearly seen fluctuating. Despite a decrease in the net interest rate in the latest quarter, its growth rate has remained positive compared to the same period last year. IT CAN BE SEEN FROM THESE DATA THAT MICROSOFT'S PROFITABILITY IS STEADILY IMPROVING DESPITE FACING SOME SEASONAL FLUCTUATIONS. This positive net interest rate trend may increase the market's confidence in Microsoft, thereby attracting more investor attention. In addition, Microsoft's financial stability and profitability will be recognized by the market if Microsoft's net profit margin continues above the industry average, potentially boosting its share price. However, investors should also be wary of any negative changes in net interest rates, as this could portend future performance declines or cost management issues.

• MSFT Microsoft 2024Q2 Market Earnings (PE)

Over the past five fiscal quarters, Microsoft's market earnings have shown a volatile upward trend. An increase in market earnings may indicate that investors have higher expectations for the future growth of the company or that the market has increased its assessment of its profitability. However, a strong rise in market earnings can also mean stocks are overvalued, especially when market earnings are far above the industry average. If the upward trend in market earnings continues without adequate profit growth support, this may cause market participants to question the sustainability of share prices. On the contrary, it may attract more long-term investors if companies are able to prove the reasonableness of their higher market earnings by improving earnings. Investors should keep a close eye on Microsoft's earnings reports and industry dynamics to better assess the real factors behind changes in its market earnings.

• MSFT Microsoft 2024Q2 Free Cash Flow (FreeCashFlow)

Based on free cash flow data for the past five fiscal quarters, we can see Microsoft's cash flow showing a complex trend. The latest quarter saw a strong year-on-year increase in free cash flow, showing a significant improvement in the company's profitability. However, data from the previous quarter showed a relatively small annual growth rate, which may mean that the company's earnings growth is slowing. Looking ahead, the free cash flow growth rate in the previous three quarters declined and then rose slightly, indicating that Microsoft may be starting to gradually recover after a period of adjustment. Investors may be concerned about this volatility as it may portend uncertainty about future earnings. In the long run, the outlook for its shares will be more optimistic if Microsoft is able to continuously improve its free cash flow and maintain a steady growth trend.

• MSFT Microsoft 2024Q2 Flow Rate (CurrentRatio)

For Microsoft, the liquidity ratio data for the past five fiscal quarters showed a downward trend, which could mean that the company's short-term solvency is weakening. The continued decline in liquidity ratios may lead investors to remain cautious about Microsoft's market performance. When assessing the future prospects of stocks, investors may express concern about this reduction in liquidity as it hints at potential financial stress and profitability issues. In addition, if this trend continues, companies may need to take measures to improve their financial situation, such as increasing capital or reducing debt. The market reaction to this may be reflected in stock price movements, and the company's strategic investment decisions may also be affected.

• MSFT Microsoft 2024Q2 Asset Return Rate (ROA)

Based on Microsoft's asset return (ROA) trend for the past five financial quarters, we can observe a range of changes. Although ROA has declined in recent quarters, its growth rate remains positive compared to the same period last year. This suggests that Microsoft has fluctuated in the efficiency of using its assets to generate revenue, but looks likely to show a positive growth stance over the long term. The increase in ROA could strengthen investors' confidence in Microsoft's financial performance and raise market expectations for its profitability. However, it should be noted that fluctuations in ROA can also be influenced by company-specific events or industry economic conditions. Therefore, investors should combine other financial indicators and market dynamics to fully assess Microsoft's performance.

• MSFT Microsoft 2024Q2 Net Asset Yield (ROE)

From the trends of the past five fiscal quarters, Microsoft's net asset return (ROE) ratio has fluctuated. The annual growth rate in the first two quarters showed a significant decline, which may indicate a decrease in the efficiency with which companies use equity capital to generate income over that period of time. Subsequently, despite a slight rebound in ROE, there were still ups and downs. This may reflect Microsoft's efforts to improve its financial leverage, cost control, or asset utilization. If the upward trend in ROE is able to continue, this will send a positive signal to the market, indicating that companies are becoming more efficient and able to create more value for shareholders. However, if this growth cannot be sustained, investors may remain cautious about the company's future profitability. Therefore, investors should keep a close eye on Microsoft's ROE performance in the coming quarters to assess the company's profit prospects and investment potential.

• Global Financial Analysis

In the last five financial reviews of Microsoft's financial indicators, we can see several key trends. First, earnings per share (EPS) showed strong year-on-year growth, especially in the last two quarters, showing a significant improvement in the company's profitability. Second, free cash flow (FCF) has slipped in recent quarters, but prior growth indicates that companies have good cash generation capacity, which is a positive signal for investors. The decline in the currentRatio and QuickRatio may indicate a weakening of short-term solvency, but remain above healthy levels, and should be of interest to investors. The steady growth in net asset return (ROE) and return on assets (ROA) demonstrate that Microsoft is performing well in the efficient use of its assets and shareholders' capital. The increase in the gross profit rate (GrossProfitRate) and the net profit rate (NetProfitRate) further confirmed the improvement in the company's operating efficiency and the increase in profitability. The upward trend in the market's earnings (PE) indicates that the market's valuation of Microsoft is increasing, but may also mean that the share price may be too high relative to current earnings. Looking ahead, Microsoft expects continued strong EPS growth, based on forecast information, and positive sales revenue growth, which may continue to drive the share price higher. Combined with these financial indicators, Microsoft shows good financial health and profitability potential, but investors should keep a close eye on liquidity indicators and market valuations to make informed investment decisions.

2. MSFT Microsoft 2024Q2 Financial Statement Reading

• Microsoft reported second-quarter revenue of $620 billion, up 18% at a constant exchange rate of 16%.

• Adjusted operating income increased by 25% and 23% at constant exchange rates.

• Earnings per share were $2.93, up 26% and 23% at constant exchange rates.

• Although the acquisition of Activision Blizzard King contributed about 4 percentage points to revenue growth, earnings per share were negatively impacted by $0.5.

• The percentage of gross margin for Microsoft Cloud Services remained flat with the same period last year at 72%.

• The operating margin increased sharply by about 5 percentage points year-on-year to reach 44%.

• The company returned $84 billion to shareholders through dividends and share repurchases.

3. MSFT Microsoft 2024Q2 Business Data Analysis

• Headquarters Structure

• Microsoft Cloud showed strong growth with over $330 billion in revenue, driven by an increase in GitHub revenue.

• The addition of more than 53,000 Azure AI customers highlights the successful integration and deployment of AI technologies across the technology stack.

• With the acquisition of Blizzard, Microsoft incorporated hundreds of millions of players into its ecosystem, driving record growth in usage across Xbox, PC and mobile platforms.

• Microsoft records a 50% year-over-year increase in cloud-delivered Windows usage, doubling operating system deployments.

• In terms of business growth, the focus is on AI services and Azure contracts, with business bookings growing by 17% and 9% in constant currency terms, respectively.

• The strength of the Microsoft 365 suite drives average revenue growth for the Office business.

• Continued focus on seat growth and average revenue growth as independent areas shows potential for future growth in both sectors.

Part 3: MSFT 2024Q2 Financial Forecast and Analysis

1. MSFT Microsoft 2024Q2 Analyst Rating, March 25th, 2024

A total of 37 analysts have recently rated Microsoft shares, with 2.71% recommending selling, 2.70% suggesting holding, and 94.59% suggesting buying. The average forecast target price is $468.7, with a high of $510.0 and a minimum of $440.0.

Second, MSFT Microsoft 2024Q2 Technical Indicator Analysis, March 25th, 2024

Based on Microsoft's technical metrics data, we can see a few key pieces of information to analyze its future performance. First, the KDJ indicator shows as a 'severely overbought' state, the same as the OSC indicator, which may mean that the current share price may be too high and market participants may consider selling for profit. However, this overbought state may also be a reflection of a strong uptrend that requires the combination of other indicators for analysis. The BOLL indicator is in 'neutral' status, indicating that the current stock price is within a reasonable range with no obvious signs of overbought or oversold. The neutral values of RSI (12) and RSI (24) further indicate that current price dynamics have not reached extreme levels. The neutral position of the MACD also hints at the equilibrium state of the current share price dynamics. The neutral value of BIAS shows that the stock price is not deviating much from its 24-day average, and market sentiment is stable. The 'oversold' status of the MA may indicate that the stock price is at a lower level, which may attract buyers in search of value buying opportunities. Taking the above indicators together, Microsoft's stock may face price volatility in the short term, but there are no obvious long-term upside signals. Investors may need more market information to make investment decisions. In the future, if the KDJ and OSC indicators show signs of a pullback and other indicators turn to a more positive state, this may indicate a new upside opportunity after price adjustments.

Part 4: How to Buy MSFT Microsoft Shares in Hong Kong

1. Find a suitable stock investment platform

2. When investing in US stocks, you need to use a platform with the ability to enter the US stock market. Futubull is one of the best choices. (Re-registration)

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6. Track your investment performance

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FAQ

1. How do third party analysts rate Microsoft stocks? Should I buy, sell or hold?

A total of 37 analysts have recently rated Microsoft shares, with 2.71% recommending sell, 2.70% suggesting holding, and 94.59% recommending buying.

2. What is the analyst's predicted target price for Microsoft shares?

MICROSOFT'S FORECAST TARGET AVERAGED $468.7, WITH A HIGH OF $510.0 AND A LOW OF $440.0.

Note:

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