Microsoft (MSFT) Market Cap Jumps $450 Billion in a Day, Surpassing Nvidia

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Microsoft (Microsoft, MSFT) increased its market capitalization by approximately $450 billion in a single day. Azure revenue surged by 43%.

According to FX Leaders on August 2 (local time), Microsoft's stock price surged by approximately 15% after its earnings announcement. The market capitalization increase in one day was about $450 billion, surpassing the previous record set by Nvidia (Nvidia, NVDA). Quarterly revenue was $90 billion, an 18% increase year-over-year. Earnings per share were recorded at $4.81.

Azure revenue increased by 43%, and Microsoft Cloud revenue reached $59.3 billion. Microsoft Cloud's annual revenue exceeded $100 billion. Commercial remaining performance obligations increased to $678 billion. Paid accounts for Microsoft 365 Copilot also surpassed 30 million. Just one day after the earnings announcement, nine brokerage analysts raised their target prices, with the average target price exceeding $560.

After the earnings announcement, the market's attention shifted to US economic indicators. Manufacturing PMI, Job Openings and Labor Turnover Survey (JOLTS) report, factory orders, private employment, services PMI, initial jobless claims, and non-farm payrolls are scheduled to be released sequentially. FX Leaders analyzed that if employment indicators weaken and bond yields remain low, expectations for favorable monetary policy for tech stocks could increase. Conversely, strong employment could put pressure on Microsoft's stock price due to rising bond yields and profit-taking pressures.

In terms of technical trends, it surpassed the long-term downtrend line and the 50-day and 100-day exponential moving averages. The two moving averages were formed at $399 and $422, respectively. The closing price was $465, just below the $465.83 resistance level. The Relative Strength Index (RSI) entered the overbought zone at 74. If it breaks above $465.83 on a closing basis, the next target prices are suggested to be $489.41 and $513.85.

The lower support levels are $431.97, $422.33, and $403.25. FX Leaders assessed that the mid-term uptrend remains intact as long as it holds above the $432 breakthrough level. While there is a possibility of a short-term correction due to the immediate post-earnings surge, the analysis suggests that the uptrend will continue as long as the support levels are maintained.

[Article Key Summary]

-Microsoft's stock price surged by approximately 15% after its earnings announcement, increasing its market capitalization by about $450 billion in one day.

-Azure revenue increased by 43%, and Microsoft Cloud revenue reached $59.3 billion.

-If it breaks above $465.83, the next target prices are suggested to be $489.41 and $513.85.

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