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 * Optimistic Outlook on Microsoft’s Growth and Market Positioning Amid Rising
   CapEx


OPTIMISTIC OUTLOOK ON MICROSOFT’S GROWTH AND MARKET POSITIONING AMID RISING
CAPEX




TipRanks
Oct. 10, 2024, 03:05 AM










Microsoft (MSFT – Research Report), the Technology sector company, was revisited
by a Wall Street analyst today. Analyst Kash Rangan from Goldman Sachs
reiterated a Buy rating on the stock and has a $500.00 price target.

Kash Rangan’s rating is based on a comprehensive analysis of Microsoft’s
financial outlook and market positioning. He acknowledges short-term pressures
due to increased capital expenditures (CapEx) but anticipates alleviation from
the growth of Microsoft’s Azure cloud services in the second half of the fiscal
year. Rangan’s confidence stems from Microsoft’s expected execution against
projected revenue growth and earnings per share, which align closely with
consensus estimates. His outlook suggests that the company’s strategic
investments, particularly in artificial intelligence (AI), will continue to
scale and drive profitability, despite the initial costs associated with these
investments.

Rangan also considers external factors, such as the upcoming US election and
interest rate clarity, which could provide tailwinds to Microsoft’s earnings in
the latter part of the year. He notes Microsoft’s historical pattern of
rebounding following periods of heightened CapEx, indicating a potential repeat
of this trend with Azure’s anticipated acceleration. Moreover, Rangan’s report
suggests that Microsoft’s earnings growth is expected to outpace that of the S&P
500, even when factoring in premium pricing, which bolsters his Buy rating.
Overall, his analysis portrays a robust forecast for Microsoft based on
strategic growth initiatives and market strength, which supports his positive
outlook on the stock’s performance.



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Microsoft (MSFT) Company Description:

Microsoft Corp. is a technology company offering an array of software, services,
and solutions as well as devices like personal computers, tablets and gaming
consoles. It operates through the following business segments:
• Productivity and Business Processes: generates revenue from Office Commercial
and Office Consumer offerings, LinkedIn and Dynamics business solutions.
• Intelligent Cloud: includes public, private and hybrid server products and
cloud services.
• More Personal Computing: includes Windows licensing, Windows Commercial
products and cloud services, Surface devices and PC accessories, gaming business
and search advertising revenue.
The company was founded by Paul Gardner Allen and William Henry Gates III in
1975 and is headquartered in Redmond, WA.

Read More on MSFT:

 * StockTok: Attorneys general in 14 states file enforcement actions against
   TikTok
 * Zoom debuts AI innovations for Zoom Workplace
 * Google (NASDAQ:GOOGL) Could Team Up with Sequoia to Boost AI Startups
 * Instructure integrates Microsoft Reflect with Canvas LMS
 * AMD Remains a Strong AI Growth Opportunity Despite being Second to Nvidia




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