The Rise of Microsoft: A Stock to Watch in 2025

Microsoft (NASDAQ:) has long been a staple in tech portfolios, and its performance in 2024 has only solidified its position as a top contender. With shares up 15% year-to-date and trading close to July’s all-time high, investors have plenty of reasons to be optimistic about the future.

Microsoft’s Fundamental Performance Continues to Impress

  • Consistent earnings beats for over two years.
  • 16% year-on-year revenue growth in the latest report.
  • Strong performance expected in the holiday quarter.

Bullish Analyst Updates Keep Microsoft in the Spotlight

  • Analysts at Royal Bank of Canada, UBS Group, and JPMorgan maintain Buy ratings.
  • Wedbush reiterates Buy rating with a $550 price target, suggesting a 30% upside potential.
  • Analysts have been consistently bullish on Microsoft throughout 2024.

Potential Concerns: Analysts Reassess Microsoft Price Targets

  • Some analysts lower price targets due to higher capital expenditure forecasts.
  • Morgan Stanley boosts price target following last month’s report.
  • TD Cowen maintains bullish rating despite revised price target.

Microsoft’s Technical Setup Suggests December Gains Are Likely

  • Stock setting higher lows, indicating building momentum.
  • MACD on the verge of a bullish crossover.
  • RSI at 57, suggesting momentum is on the bull’s side.
  • Broader macro environment supports a potential breakout.
  • Look for a move above $440 to confirm the breakout.

With all these factors in play, Microsoft is a stock to watch as we head into 2025. Stay tuned for potential gains in the coming weeks.

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