2023-04-27 23:12:45
Rogers is at the top for the number of new wireless subscribers for a sixth quarter of the last seven. (Photo: 123RF)
What to do with Microsoft, General Motors and Rogers titles? Here are some recommendations from analysts likely to move prices soon. Note: the author may have a totally different opinion from that expressed by the analysts.
Microsoft (MSFT, US$286.54): Cloud computing leads the way
Despite the prevailing macroeconomic uncertainty, Microsoft fared majestically thanks to another strong quarter in cloud computing.
Wedbush analyst Daniel Ives says the US computer giant boosted constant dollar revenue by 31%, easily beating the market forecast of 27%. Clearly, he believes, the company is gaining market share with customers using Microsoft to make the move to cloud computing.
Total revenue was $52.86 billion in the third quarter, a 7% year-on-year increase (10% in constant dollars), once more ahead of market consensus at US$51.12 billion.
Most other leading indicators were also up. The cloud computing sector stopped at $22.08 billion (+16% annually), that of productivity and business processes at US$17.52 billion (+11%), the gross margin at 69.5 % (+2.7%) and the operating margin at 42.3% (Microsoft had rather expected 38.6%).
Daniel Ives therefore says that it is cloud computing that is propelling the company’s growth for the moment, while we are witnessing the infancy of artificial intelligence with Microsoft and ChatGPT in the lead position. He adds that the transaction for the acquisition of Activision is also expected to close in the coming months.
Third quarter results as well as developments in cloud computing and artificial intelligence leave Wedbush with an even more optimistic view of Microsoft. It maintains its forecast of outperformance of the stock once morest its sector of activity and raises its target price from US$315 to US$325.
General Motors (GM, US$32.91): good results thanks to North America
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