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Investors will be Closely Watching Microsoft This Week and Here’s Why

Bearing in mind that some of the biggest U.S. companies will be sharing their quarterly earnings this week, investor interest will likely be majorly on corporate America and the financial stability of its most high profile corporations. 

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During the upcoming five-day time-frame, around a third of S&P 500 companies are aimed to post their most recent data along with their outlook predictions for the rest of the year, including such tech darlings as Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN) and industrial names, such as Boeing (NYSE:BA) and Caterpillar (NYSE:CAT).

Approximately 87% of S&P 500 companies that shared results so far this season have surpassed Wall Street expectations. Following some of the recent studies, investors are celebrating a rapid economic rebound and fueling corporate America despite the threat of growing inflation. 

During this important week for the Q2 earnings season, we will be watching major tech mega caps whose earnings releases would help understand whether they are still benefiting from the pandemic-fueled demand growth that pushed some companies shares to record high prices:

Microsoft

Microsoft (NASDAQ:MSFT), a high-profile mega cap technology company, also intends to share its fiscal 2021 Q4 earnings after the market closes on Tuesday. The software and cloud computing giant is predicted to post EPS of $1.91 on sales of $44.13 billion, following consensus expectations.

In case we can trust past performance, Microsoft would demonstrate robust momentum inspired by a boost in technology investments and the power of its cloud computing and leading Office products lineup. The Redmond software and infrastructure company that is based in Washington is taking advantage of the growing demand for connectivity as people keep working and interacting socially from home.

In addition, investors are looking forward to businesses and governments to continue spending on their transition to cloud computing—which has been a major area of growth for the corporation in past years. 

Growth in that sector boosted 50% in Q3 as corporate clients prompted a shift to the cloud during the pandemic, where they can store data and run applications via the internet. MSFT shares ended trading on Friday at $289.67, after soaring 30% this year.

 

 

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