MSFT Stock Gives Gains After Microsoft’s Q2 Surge – Can Support Hold?
The stock is currently facing a critical test of its uptrend support as Microsoft's recent increase on Azure momentum encounters resistance.
Quick overview
- Microsoft's stock surged 10% after a strong fiscal Q2 earnings report, driven by Azure's record revenue growth.
- The Intelligent Cloud segment generated $29.88 billion in revenue, surpassing expectations and highlighting Microsoft's cloud and AI investments.
- Despite initial enthusiasm, the stock has since declined, falling back under the $4 trillion valuation threshold.
- The critical test for Microsoft now lies at the 20-day simple moving average, which could determine the future direction of the stock.
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The stock is currently facing a critical test of its uptrend support as Microsoft’s recent increase on Azure momentum encounters resistance.
Azure’s Big Beat Fuels Brief Euphoria
Microsoft Corporation (NASDAQ: MSFT) saw a sharp 10% spike in its share price following the company’s impressive fiscal Q2 earnings release last Thursday. The surge was driven by Azure’s record-setting revenue growth, which reinforced the company’s dominant position in cloud computing and reignited investor enthusiasm around its long-term strategy. Azure’s annualized revenue hit $75 billion for the first time, beating Wall Street’s estimate of $74.62 billion.
MSFT Chart Daily – Will the 20 SMA Hold Again?
That announcement propelled MSFT stock to an all-time high of $556 and briefly pushed its market valuation above the $4 trillion mark at $538.13 — a feat that underscored the tech giant’s expanding dominance in artificial intelligence and enterprise cloud services.
Intelligent Cloud Division Surpasses Expectations
The company’s Intelligent Cloud segment, which includes Azure and its server product offerings, generated $29.88 billion in revenue — an impressive 26% increase year-over-year. That result topped consensus estimates of $28.92 billion and validated Microsoft’s aggressive investment in cloud infrastructure and AI integration.
Microsoft now operates over 400 datacenters across 70 regions globally — more than any other cloud provider — a scale that is increasingly hard to ignore. CEO Satya Nadella’s “cloud-first, AI-powered” vision appears to be gaining tangible traction.
Post-Earnings Reversal Signals Caution
However, the enthusiasm didn’t last long. A swift reversal set in just one trading day after the earnings report, and this week has continued on a bearish note. Microsoft stock has now surrendered nearly all of its post-earnings gains, falling back under the psychological $4 trillion valuation threshold. As of the latest trading sessions, MSFT has dropped back to around $504, with investors reassessing valuations in the face of broader market softness.
Moment of Truth at Key Technical Level
Now, all eyes are on whether Microsoft can hold its 20-day simple moving average (SMA), which acted as dynamic support during the previous uptrend. If the 20 SMA holds, the stock’s longer-term bullish trend could remain intact. But if it breaks decisively, a deeper pullback could follow — possibly signaling a cooling period after months of strength.
This technical level has become the battleground between profit-taking and bullish conviction, and how MSFT responds here could shape its short-term trajectory.
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