Is Microsoft Stock A Sell After Earnings? The Key Lies In Azure


  • Azure’s deceleration in revenue growth was the main disappointment for the market as management guided a further deceleration of 4 to 5 percentage points.
  • As a result of a weaker macro backdrop, Microsoft’s FY2023 revenue growth target of 10% is not achievable, which removes another overhang for the stock.
  • Management has showed strong operating expense and margin control to limit the downside in EPS.
  • OpenAI is not expected to have a material impact on Microsoft on the revenue and capital expenditures front.
  • My one-year target price for Microsoft is $305, implying 23% upside from current levels.
Entrance of Microsoft headquarters building in Issy les Moulineaux near Paris, France

Jean-Luc Ichard

Microsoft (NASDAQ:MSFT) recently reported its results and the market went from “It’s over” to a “Conservative Guidance” thesis. This article goes deeper into the recent earnings to determine if there is an opportunity at hand for investors.

Investment thesis


Disclosure: I/we have a beneficial long position in the shares of MSFT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Outperforming the Market

Outperforming the Market is focused on helping you outperform the market while having downside protection during volatile markets by providing you with comprehensive deep dive analysis articles, as well as access to The Barbell Portfolio.

The Barbell Portfolio has outperformed the S&P 500 by 41% in the past year through owning high conviction growth, value and contrarian stocks.

Apart from focusing on bottom-up fundamental research, we also provide you with intrinsic value, 1-year and 3-year price targets in The Price Target report

Join us for the 2-week free trial to get access to The Barbell Portfolio today!

Leave a Reply

Your email address will not be published. Required fields are marked *