Microsoft stock has skyrocketed during the last months. After the release of its second quarter’s results, it soared by nearly 10%. Such an increase was mostly due to Microsoft’s cloud computing unit Azure and also its social media platform LinkedIn. The Azure rose by 62%, and LinkedIn also surged forward by 24%.
Microsoft’s cloud business unit is climbing up steadily. It has brought significant earnings during the last session. Cloud’s revenue rose by nearly 27% in the quarter, reaching almost $11.9 billion a year ago.
Meanwhile, productivity and business processes also grew by roughly 17% to $11.8 billion. However, more personal computing had the weakest growth, rising only 1.7% to $13.2 billion.
Will Microsoft continue to rally in 2020?
The stock has already added a 74% gain over the past year’s value. Investors think that Microsoft will rise by 9% during the next few months.
The company’s revenue beat analysts’ expectations by nearly 3.5% at $36.91 billion. Furthermore, Microsoft overcomes experts’ earnings estimates by more than 14%, raising the price at $1.51 per share.
Thus far, investors predict more good news for this stock. It seems analysts are on the same page. After the second quarters’ results, they have begun raising their earnings estimates for the company. The estimates for earnings have soared by almost 6%. According to experts, they will grow further by 20% in fiscal 2020 to $5.70 per share.
Meanwhile, the revenue has increased roughly by 2%, and it may climb up by almost 13.5% to $142.6 billion in the near future. While analysts predict the stock to hit more highs soon, they are also boosting their full-year fiscal 2021 and 2022 earnings estimates. As a result, the shares’ price is growing rapidly. The average target on the stock rose from $165 to $197. Experts think that the price may increase again.