Microsoft Corp. (NASDAQ:MSFT) reported better-than-expected fiscal year 2024 second-quarter results on Tuesday, prompting Wedbush analyst Daniel Ives to reaffirm his optimistic outlook on the company.
Analyst’s Insight: Ives maintained an Outperform rating and set a $450 price target for Microsoft stock.
Wedbush analyst Daniel Ives hailed Microsoft’s fourth-quarter performance as a “masterpiece quarter,” lauding CEO Satya Nadella’s guidance as something that “should be hung in the Louvre.”
Ives anticipates that the results will have a significant ripple effect across the tech industry.
Ives highlighted Microsoft’s early-stage “major monetization” opportunity driven by the integration of artificial intelligence (AI) across its installed base, positioning the company for substantial growth in the coming years.
Why It Matters: With Microsoft intensifying its AI strategy, Ives noted the significant demand generated by Copilot, signaling promising prospects for monetization and further acceleration in fiscal year 2024.
In terms of specific business segments, Azure’s public computing service revenue experienced a 30% increase, surpassing the 27% consensus estimate, with AI transformation contributing to an acceleration in deal flow, according to Ives.
Ives concluded by characterizing the third-quarter guidance as “solid.”
Microsoft Price Action: Microsoft ended Tuesday’s session down 0.28% at $408.59 and lost an incremental 0.33% in after-hours trading, according to Benzinga Pro data.
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