Microsoft reported strong earnings for the third quarter, which has excited investors. The company earned $70.1 billion and $3.46 per share, surpassing expectations of $68.4 billion and $3.22. This good news led to an over 8% rise in Microsoft’s stock price after hours.
The main reason for Microsoft’s success is its cloud service, especially Azure, which increased revenue by 35%. Investing in artificial intelligence (AI) has helped the company improve productivity and lower costs for businesses. This focus on AI makes Microsoft a leader in technology.
Analysts believe there is still more potential for Microsoft’s stock to grow. Forbes suggests the stock could reach $500 per share, which is nearly an 18% increase from its current price. Other analysts, including those from Piper Sandler and Morgan Stanley, have price targets between $475 and $520.
However, Microsoft has some challenges. High spending, especially on AI, might affect short-term profits. The company also decided to slow down its data center expansion to balance growth ambitions with financial responsibility in a changing economy.