Microsoft's good results cause the stock to rise in the pre-opening

January 27, 2021 14:30

During the session yesterday, Microsoft announced its fourth-quarter results for 2020, vastly exceeding the consensus of analysts with a profit per share of $2.03 compared to the expected $1.64, with quarterly profits of 43.076 million dollars. This represents an increase of 17% higher over the same period of the previous year.

In this data, we can also see that their net profit increased by more than 30%, reaching $15.5 billion. In addition, if we speak in semi-annual terms, we can see that its net profit has increased by 24.152 billion dollars, with income in excess of 80 billion, so we can see that in the last part of the year the net profit shot up.

If we look closely at this data, the company has grown in all its divisons, with their cloud business growing by 21%, and an increase in the Xbox and personal computing division of 10%.

Technically speaking, during the trading day yesterday, Microsoft experienced a rise of 1.22% but in the pre-opening it is trading with a rise of more than 3% compared to yesterday's close, so these good results are expected to support the stock.

In recent months, Microfost has experienced a strong upward trend which began after the falls at the beginning of the pandemic, which has led it to trade at levels of historical highs, although as we can see on the daily chart, in recent weeks it has been moved in an important lateral range with two important support in red although it is currently in the upper zone of the channel.

These good results could support the bulls and break this resistance level, although it is important to see how it will behave in the coming days.

Source: Admiral Markets MetaTrader 5. Microsoft daily chart. Data range: from October 14, 2019 to January 27, 2021. Prepared on January 27, 2021 at 12:00 CET. Keep in mind that past returns do not guarantee future returns.

Price evolution of the last 5 years:

  • 2020: 41.04%
  • 2019: 55.26%
  • 2018: 18.74%
  • 2017: 37.66%
  • 2016: 12%

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