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Technology

Microsoft Corporation (NASDAQ:MSFT) Stock Trades Higher Following Strong Q4 Earnings

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While Microsoft’s recent run has been good for investors, the stock is still a bit shy of its 52-week high

Microsoft Corporation (NASDAQ:MSFT) reported its fourth quarter results on Tuesday, July 19. Earnings topped consensus expectations as the company continues its shift to cloud-based services from software. The company reported $22.6 billion in revenues for the quarter ended June 30, 2016, whereas the earnings turned out to be $0.69 per share. Both the earnings and revenues were noted to be ahead of the consensus.

The $444 billion company reported 102% year-over-year growth in Azure, its cloud platform, while revenue grew 7% YoY to $6.7 billion for the segment. The consensus had projected intelligent cloud segment to reach $6.61 billion for the quarter. Following the bright results, Microsoft shares climbed higher. Through yesterday’s trading session, Microsoft stock gained 1.38% to close at $56.57.

However, the technology company still lags behind its 52-week high of $56.85 which it achieved in December 2015. Over the past month, the stock has surged over 16%.

Microsoft’s solid results were mainly driven by strong growth in the cloud business. CEO Satya Nadella commented in a press release: “The Microsoft Cloud is seeing significant customer momentum and we’re well-positioned to reach new opportunities in the year ahead.” Microsoft’s Windows hardware and software sales, however, fell 4% YoY to $8.9 billion.

The consensus 12-month price target for Microsoft stock stands at $59.30, reflecting an upside potential of 4.82% over the last close. Out of the 36 analysts covering Microsoft stock, 18 rate it a Buy, 12 rate it a Hold, three rate it an Overweight, while two rate it a Sell. Microsoft Corporation has a market capital  of $443 billion.

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