What's Going On With Microsoft Stock Wednesday?

Microsoft Corp MSFT shares are trading lower Wednesday on the heels of the company’s fourth-quarter financial results. Here’s what you need to know.

What To Know: Microsoft reported fourth-quarter revenue of $64.7 billion, beating estimates of $64.36 billion, according to Benzinga Pro. The company reported earnings of $2.95 per share, beating estimates of $2.92 per share.

Total revenues were up 15% on a year-over-year basis, Intelligent Cloud revenue came in at $28.5 billion, up 19% year-over-year and Azure and other cloud services revenue increased 29% year-over-year. Some of the selling pressure in Microsoft shares appears to be due to the Azure number, which was expected to come in around 30%.

“Our strong performance this fiscal year speaks both to our innovation and to the trust customers continue to place in Microsoft,” said Satya Nadella, chairman and CEO of Microsoft.

“As a platform company, we are focused on meeting the mission-critical needs of our customers across our at-scale platforms today, while also ensuring we lead the AI era.”

Outlook: Microsoft sees first-quarter Intelligent Cloud revenue in the range of $28.6 billion to $28.9 billion. The company expects first-quarter productivity and business revenue of $20.3 billion to $20.6 billion. Productivity and business revenue came in at $20.3 billion in the fourth quarter. Microsoft sees Personal Computing revenue in the range of $14.9 billion to $15.3 billion.

See Also: Satya Nadella Says Microsoft’s Copilot Drives 40% Of GitHub’s Revenue Growth: We Are Also ‘Enabling Anyone To Use Natural Language To Create Apps…’

Analyst Changes:

• Piper Sandler analyst Brent Bracelin maintained Microsoft with an Overweight and price target of $485.

• Citigroup analyst Tyler Radke maintained Microsoft with a Buy and lowered the price target from $520 to $500.

• Wells Fargo analyst Michael Turrin maintained Microsoft with an Overweight and raised the price target from $500 to $515.

MSFT Price Action: Microsoft shares initially traded sharply lower when the company released its quarterly results. The stock has been bouncing back since. Microsoft shares were down 1.57% at $416.30 at the time of publication, according to Benzinga Pro.

Photo: Volodymyr Kyrylyuk/Shutterstock.