On Thursday, Microsoft [NASDAQ: MSFT] announced its Q4 results, and they have beat analyst expectations. This has created bullish momentum around this stock, and it’s manifesting in its pre-market trading. At the time of writing, MSFT is up by $3.58% to trade at $141.30.
Going by its earnings report, Microsoft continues to get stronger in the cloud business, which has been its core focus since Satya Nadella became CEO in 2014. The company’s cloud business hit revenues of roughly $11.4 billion in Q4, while analysts were expecting revenues of $11 billion. The company’s Azure cloud platform has also gained in terms of developer networks, and clientele. For instance, the company recently signed a $2 billion cloud services deal with AT&T. Microsoft’s productive software (LinkedIn and Office 365) revenues have also grown significantly to hit about $11.3 billion. Analysts were expecting revenues of $10.71 billion. The company has also beat analyst expectations on its traditional windows business. It reported earnings of $11.3 billion, against analyst projections of $10.71 billion. These strong numbers and a steadily rising stock have seen Microsoft rise to a valuation of roughly $1.045 trillion at Thursday’s close.
From the charts, Microsoft was forming higher lows, after a bullish reversal at $134.67 in early Thursday trading. The key level to watch when markets open will be $139.54. This is an area of key resistance in the day. It has already pushed above this level in pre-market trading, and if it sustains the trend, it could trade in the green when markets open. Bullish sentiment is reinforced by the fact that Microsoft is currently holding well above the 50-day moving average support at $131.34. This bullish price action coupled with strong fundamentals could see Microsoft close the week in positive territory.