🌐 Microsoft’s (NASDAQ:MSFT) Q4 2024 results highlight a solid 15% year-over-year revenue increase, reaching $64.7 billion, with GAAP EPS at $2.95. The company achieved strong growth across its key segments, showcasing resilience despite market volatility and broader economic challenges.
💡 A significant driver behind this success is Microsoft’s focused integration of AI technologies, particularly through its Copilot assistant, which saw an impressive 60% increase in users year-over-year. This surge positions Microsoft to capitalise on the expected rise in global IT and AI spending, reinforcing its leadership in these rapidly expanding sectors.
📊 The Intelligent Cloud division, a core pillar of Microsoft’s growth strategy, reported a revenue increase of 19% to $28.5 billion, with Azure and other cloud services up by 29%. Azure’s growing market share, now at 20%, underscores its robust performance. With the cloud market projected to continue expanding, Microsoft’s future prospects appear strong and sustainable.
💼 In light of these positive developments, analysts have revised Microsoft’s FY2025 estimates upwards, suggesting a fair value of approximately $465.35 per share, with potential for further upside. Some even predict the stock could reach $500, reflecting broad confidence in Microsoft’s ability to exceed expectations and continue delivering value to shareholders.
📈 Despite the presence of macroeconomic risks, Microsoft’s strategic focus on AI and cloud computing, combined with its resilient business model, suggests that the company’s growth trajectory is far from over. As Microsoft rebounds from recent market lows, it presents a compelling opportunity for investors seeking both growth and stability in their portfolios.
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IMPORTANT: This article is of general nature only and readers should obtain advice specific to their circumstances from professional advisers.