Microsoft's good results cause the stock to rise in the pre-opening
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%
With the Admiral Markets Trade.MT5 account, you can trade Contracts for Differences (CFDs) of Microsoft and more than 3000 stocks! CFDs allow traders to try to profit from the bull and bear markets, as well as the use of leverage. Click on the following banner to open an account today:
INFORMATION ABOUT ANALYTICAL MATERIALS:
The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admiral Markets investment firms operating under the Admiral Markets trademark (hereinafter “Admiral Markets”) Before making any investment decisions please pay close attention to the following:
- This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
- Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
- With view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
- The Analysis is prepared by an independent analyst, Roberto Rojas (analyst), (hereinafter “Author”) based on their personal estimations.
- Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.
- Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
- Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.