Microsoft: earnings report on July 27

What will happen? 

Microsoft, the US IT company, will present its earnings report for the second quarter on July 27 after the stock market closes (23:00 GMT+3). The release will be followed by an investor conference call at 00:30 MT, July 28. 

What to expect?

Microsoft splits its business into three similarly sized segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. Analysts are calling for strong growth across all three segments, as:

• Personal computer sales can keep growing monthly;
• Cloud computing platform Azure gets quickly adopted as the pandemic-led digital transformation spreads across the globe;
• Communication service Teams continue to gain momentum due to the continuation of work from home and online learning.

Analysts and experts forecast: Earnings per share = 1.91; Revenue = 44.06B

Technical analyses

4H chart

Investors are awaiting a strong earnings report. They have been buying back the stock on every drawdown for a while. It might play a terrible trick since one of the most popular trading strategies says: “buy the rumor, sell the news”.

Microsoft stock looks overbought according to RSI and MACD indicators. Institutionals might fix profits and drop the price after the report as it happened after the last report was published. It is important to wait for the right time to open the position. The best time for it will be right after the report presentation, where it will be more clear which side “whales” pick to push the price at.

If the price drops it will meet the closest support levels at $282, $275. On the flip side, the target is $300.  

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Kirill Belyaev

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