Microsoft stock adds US$1 trillion in its best quarter since 1998
June was the stock’s worst month since 2000, with investors questioning Microsoft’s spending and the outlook for software companies in an AI world, per Bloomberg.
Of the 72 analysts tracked by Bloomberg who follow Microsoft, only three do not have buy ratings, and none rates the stock a sell.
The average price target implies a gain of about 11 percent over the coming 12 months.
Stifel upgraded the stock to buy, with analyst Brad Reback writing that the company had “clearly turned the corner” and that he is “increasingly comfortable with the company’s ability to sustain mid/upper teens revenue growth.”
The shares trade at almost 25 times earnings estimated over the next 12 months, a discount to their 10-year average of 27.
