Microsoft's stock has recently surged past $425 following a strong fiscal first quarter in 2025. The company reported earnings per share (EPS) of $3.46, exceeding forecasts of $3.23, and revenue reached $70.1 billion, surpassing the anticipated $68.53 billion.
This performance has boosted investor confidence, with shares rising 7.92% in aftermarket trading. Analysts are overwhelmingly bullish on Microsoft, citing its robust cloud and AI service demand as key drivers. Microsoft Cloud revenue grew by 20-22% in constant currency.
Investors should monitor Microsoft's performance closely, especially around key price levels. The average price target from analysts is around $507.77, suggesting further upside potential. However, some analysts have lowered their price targets amid concerns about tariffs and increased capital expenditure on AI. The stock's trajectory will provide insights into its short- to medium-term outlook, with potential targets around $440 and beyond.