MSFT shares traded around $530, which is less than 5% lower than the previous historical high of around $555.
Azure revenue increased by 43% year-on-year, and Microsoft's remaining commercial obligations soared by 84% to $678 billion.
The financial report on October 28th may trigger the next round of significant fluctuations, with optimistic analysts' target prices having been extended to $665 to $725.
Microsoft's stock price has risen significantly in October and is now approaching record highs, presenting investors with a familiar dilemma once again: should they buy in as the trend continues, or wait for a better entry point? Strong Azure growth, accelerating AI demand, and Wall Street's bullish target prices still support its long-term outlook. However, MSFT is currently trading around $530, and the company's financial report is due to be released on October 28th, with market expectations already quite high. The next financial report may determine whether Microsoft will break new highs or experience a pullback.
Latest analysts have upgraded their bullish stance
Microsoft's recent gains are gaining more support from Wall Street. Melius Research has upgraded its rating on MSFT from "Hold" to "Buy" and raised the target price from $465 to $665. Analyst Ben Reitzes stated that Microsoft's position in the enterprise market, its cybersecurity capabilities, and its AI strategy are the reasons for his increased confidence in the stock. A target price of $665 implies a potential upside of about 25% from the current price.
A majority of analysts also have a similarly bullish outlook. Current consensus forecasts indicate an average target price of nearly $588, with the overall rating for the stock being "strong buy."
Azure remains the primary reason for holding MSFT stocks.
Azure has also crossed the $100 billion revenue threshold for the year, which provides a greater foundation for Microsoft to monetize from the AI craze.
The October financial report will show whether this growth rate can be maintained. If Azure performs better than expected, and management raises its outlook, investors may have sufficient reasons to push MSFT to break through its previous high points.
MSFT Will stocks bring another financial report surprise?
This is also the most noteworthy aspect of the arrangements for October. According to recent market analysis, Microsoft has exceeded earnings expectations for six consecutive quarters. The next financial report is scheduled to be released on October 28th, and current market data also lists this date as the expected release time for Microsoft's financial report.
Last quarter, the company delivered results that significantly exceeded expectations, with earnings per share of $4.74, which is higher than the consensus forecast of $4.24; revenue amounted to $90.01 billion, surpassing the expected $87.62 billion.
It would be very important if there is another upward surprise, as the stock price of MSFT has already risen significantly before. If both revenue and earnings per share exceed expectations, and at the same time, the guidance for Azure is even stronger, it could become a catalyst for the stock price to reach new highs.
MSFT Stock Price: $555 is the Next Key Test
The stock price closed at $529.76, while the previous historical high was around $555.45. The current price is less than 5% away from that level. If it can clearly break through $555, it will bring Microsoft into a new high range. If the breakthrough is confirmed, the technical target is set between $700 and $750, but these targets depend on whether the upward trend can continue.
On the downside, $465 to $480 is a key support range. If this area is broken through, the current bullish outlook will be weakened.
MSFT What will happen next?
Supported by strong Azure growth, expanding AI demand, and a large backlog of signed orders, Microsoft remains attractive to long-term investors. However, given that MSFT is nearing historical highs, the risk-reward ratio for aggressive buying is no longer as favorable. The financial report on October 28th may determine the next trend. If Azure prospects are strong and the financial report exceeds expectations, MSFT could break through $555; if the guidance is weaker, it could lead to a decline.
