Microsoft Shares Rise After Strong Q3 Results
Microsoft’s shares rose by almost 7% at the opening of the market on Wednesday, following the release of its Q3 results. The company reported earnings per share of $2.45, beating the consensus estimate of $2.23 per share, and revenue of $52.86 billion, versus the analyst expectation of $51.02 billion. Microsoft also issued strong guidance for its upcoming fiscal quarter. The company’s CFO, Amy Hood, expressed optimism for growth in artificial intelligence, stating that « we’re excited about the early feedback and demand signals from the AI capabilities we’ve announced to date. »
Regulator Blocks Microsoft’s Acquisition of Activision Blizzard
Despite the positive Q3 results, Microsoft’s planned acquisition of video game company Activision Blizzard was blocked by a British regulator on Wednesday morning. This news did not seem to affect the company’s shares, which held their gains throughout the day. Goldman Sachs rates Microsoft as a buy, with a price target of $335, while Morgan Stanley reiterated its overweight rating on the stock and increased its price target to $335.
Microsoft’s strong Q3 results and continued optimism for growth in artificial intelligence make it a compelling investment opportunity in the technology industry and across sectors. As a leading player in the public cloud and generative AI, Microsoft’s differentiated positioning drives share gains and out-performance against street expectations.
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Keywords: Microsoft, Q3 results, shares, earnings per share, revenue, artificial intelligence, acquisition, Activision Blizzard, Goldman Sachs, Morgan Stanley, public cloud, generative AI.
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