What will happen to Microsoft stock on Thursday? -Microsoft (NASDAQ:MSFT)

Microsoft Corp MSFT stocks are in the spotlight Thursday ahead of earnings. Here’s what you need to know

What to know: Microsoft will release financial results for its fiscal third quarter after the market closes Thursday. According to Benzinga Pro estimates, the company is expected to report earnings of $2.82 per share and revenue of $60.804 billion.

Last quarter, Microsoft beat analysts’ estimates in both top and bottom lines, as total revenue increased 18% year over year.

“We’ve gone from talking about AI to applying AI at scale. By infusing AI into every layer of our technology stack, we’re winning new customers and helping drive new benefits and productivity gains across every industry, ” Satya Nadellapresident and CEO of Microsoft, he said at the time.

During the conference call, Microsoft called for an approximately 1-point decrease in Microsoft Cloud gross margin percentage and a substantial increase in capital expenditures on a sequential basis.

Microsoft also reported Productivity and Business Process revenue growth of 10% to 12%, Office 365 revenue growth of approximately 15%, Office Consumer and LinkedIn revenue growth in the mid-single digits high, Intelligent Cloud revenue growth between 18% and stable Azure revenue growth of 19%.

Microsoft shares are facing some selling pressure ahead of earnings. Investors appear to be paying attention after Meta fell more than 15% following its earnings report last Wednesday. Gross domestic product (GDP) also stood at 1.6% on Thursday morning, below economists’ expectations of 2.5%, appearing to trigger a broader sell-off in markets.

Check this out: US economy grows 1.6% in first quarter, slightly below expectations as pricing pressures weigh on spending

Here’s a look at some of the recent analyst changes:

• Stifel analyst Brad Reback maintained Microsoft with a buy and a $455 price target.

• Citigroup analyst Tyler Radke maintained Microsoft with a buy and lowered the price target from $480 to $475.

• Wells Fargo analyst Michael Turrin kept Microsoft overweight and raised his price target from $460 to $480.

• BMO Capital analyst Keith Bachman kept Microsoft outperforming and raised his price target from $455 to $465.

• Morgan Stanley analyst Keith Weiss kept Microsoft overweight and raised his price target from $465 to $520.

MSFT Price Action: According to Benzinga Pro, Microsoft shares were down 3.11% at $396.33 at the time of publication.

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