Microsoft Is Outperforming Much of the Stock Market

Microsoft (MSFT) gained 1% on Monday while the S&P 500 only climbed by 0.55%. The Dow Jones closed a little lower than the previous day- by 0.06%.

Microsoft is looking good already this year.

The tech giant did not manage to outperform the Nasdaq Composite, which gained 1.24%, but MSFT stock is up by 0.34% for Tuesday already as the market has just opened at the time of this writing. This could be a good week for the company, and we will explain why.

Microsoft spent much of December in decline, performing poorly compared to the rest of its 2024 performance. Since the beginning of January, though, the stock has done much better, climbing steadily.

Microsoft’s Quarterly Report Is Coming Soon

Microsoft will be releasing their earnings report soon and are expected to show annual gains. The expected $3.14 earnings per share would indicate growth of more than 7% for the year.  

Revenue for the quarter is anticipated to be about $68.75 billion, and if so, then that would mean about 10% growth for the quarter compared to the same time last year.

With positive numbers like these being thrown around, it is no surprise that Microsoft stock is doing well. Once the actual numbers release, it could be a different story, but if they are in line with expectations, then the stock should climb even higher. That could help Microsoft to make up for its losses in the last half of 2024.

For the year, the expectation is that Microsoft will have earned $277 billion- a more than 13% increase from 2023’s earnings.

Microsoft invested heavily in AI in 2024, and that investment may pay off this year. That is their hope, anyway, and the rapidly growing market could help propel MSFT stock much higher in the coming months. Now that the investment has been made, the company can work to make back the profits as the year progresses.  

 

 

 

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ABOUT THE AUTHOR See More
Timothy St. John
Timothy St. John
Financial Writer - European & US Desks
Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.
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