We all know what a splash Microsoft (NASDAQ:MSFT) has made in the last few weeks, spurred on by its advancements in cloud-based systems and artificial intelligence (AI). Now, it’s gained just a bit more ground as the word came out from Wedbush Securities and gave Microsoft a little extra push in Monday afternoon’s trading session.
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Wedbush—via analyst Dan Ives—revealed that the combination of cloud and AI that’s already given Microsoft a leg up will likely continue to do so right into fourth-quarter earnings results and beyond. Ives refers to the combination of cloud and AI as a “golden 1-2 punch” for Microsoft, one that will produce some overall beats. While Wall Street isn’t expecting a huge win for Microsoft this quarter, it’s expecting a win nonetheless. And a win that it can likely capitalize on going forward. Certainly, the macroeconomic situation is one to watch for and one that could play hob with results, but Ives calls this “cookie-cutter caution,” whose impact will likely be mild.
However, the cloud might pose more problems for Microsoft than even it suspects. Recently, the Chinese hacker group Storm-0558 seized a consumer signing key that gave them access to Exchange Online and Outlook.com. Reports from Wiz security researchers, meanwhile, noted that the key likely went much farther than that, hitting Azure Active Directory accounts as well. The hackers managed to get in through a zero-day validation issue, but that issue has been patched. This kind of thing will, naturally, continue as long as there is value in the cloud.
What is a Good Buy Price for MSFT?
Microsoft is a pretty big winner as far as analysts are concerned. Microsoft is considered a Strong Buy thanks to the combination of 31 Buy ratings, three Holds, and one Sell. Further, Microsoft offers investors 8.9% upside potential thanks to its average price target of $374.59.
