- Microsoft Stock flows on a LOW Q1 GDP reading on Wednesday.
- The preliminary American GDP for the first quarter shows a QOQ slide by 0.3% annualized.
- Microsoft is expected to publish tax income from the Q3 after the end on Wednesday.
- The call for profits will revolve around the European expansion of the cloud, the prices and the investment break from the American data center.
Microsoft (MSFT) The action dropped by around 2% near the opening on Wednesday after the US office (United States) Analysis said American GDP in the first quarter dropped 0.3% QOQ on an annualized basis. Economists expected a 0.2% reading, and preliminary reading seems horrible compared to the figure of 2.4% of T4 2024.
Microsoft's actions increased slightly during last week before the tax profits of Q3 on Wednesday. Wall Street expects the technological pillar to declare the profit per share (BPA) of $ 3.22 on a turnover of $ 68.44 billion for the quarter ending in March.
The wider market is also sold in light of the GDP figure. The industrial average Dow Jones (DJIA), which includes Microsoft, tends to 1.6% lower near the start of Wednesday session, while the Nasdaq composite focused on technology lost 2.5%.
The S&P 500, which decreased by around 2% at the time of the editorial staff, is the last victim of the analysts' revisions due to the test of the Trump administration prices. HSBC reduced its optimistic objective of 6,700 years to 5,600. The index is negotiated nearly 5,447 Wednesday morning.
Microsoft Stock news
Microsoft leaders, however, do not seem to worry about the coming year. The company announced on Wednesday morning with a view to the press release of the results it planned to double its data center infrastructure in Europe by 2027 from figures for 2023. This will consist of the company Cloud segment of the company which operates more than 200 data centers on the counterpart by the end of 2027.
Microsoft has already invested regularly in the past two years and says that it will add an additional 40% to capacity in the next two. The plan announced Wednesday mentions investments in 16 European nations.
Microsoft described its five main goals with this European expansion:
- Build a large AI and Cloud ecosystem across Europe
- Keep Europe's digital resilience despite geopolitical volatility
- Continue to protect the confidentiality of European data
- Defend European cybersecurity
- Strengthen Europe’s economic competitiveness, especially for open source.
Earlier this year, Microsoft said it would spend up to $ 80 billion in data centers during this exercise only. But analysts began to wonder about the sincerity of the company when it began to slow investments in several American facilities at the start of the stadium at the start of the year. The management simply declared at the time that they had decided to remain agile with their deployment of Capex.
Investors will surely have other questions when calling the profits later Wednesday on the way C-Suite consults these interrupted projects. Other questions will revolve around Microsoft's prospects on prices and how they will modify the advice of the company this year.
Microsoft stock forecasts
Microsoft's actions have only just found the old support group from $ 385 to $ 390 after falling into a clear decrease trend in the last two months. On Wednesday, poor profits or retraction of advice will almost certainly return MSFT below $ 385, losing the simple 50 -day mobile average (SMA) once again. In this case, Microsoft's actions will probably reap the range from $ 345 to $ 360.
Msft Daily Stock Thatl
A Beat-A-Raise quarter, however, could propel the action course in the higher support range from $ 400 to $ 410. The 200 -day SMA remains the goal of the bulls because it now takes a turn of $ 414.
