Here's How Much Traders Expect Microsoft Stock to Move After Earnings

Core Insights - Microsoft is expected to report its fiscal second-quarter results, with analysts predicting revenue growth driven by strong AI demand [1] - Options pricing indicates traders anticipate a stock movement of up to 5% in either direction following the earnings report [1] Financial Expectations - Analysts forecast Microsoft will report revenue of $80.31 billion for the fiscal second quarter, representing a 15% year-over-year increase [1] - Intelligent Cloud revenue is expected to rise by 27% to $32.39 billion [1] - Earnings per share are projected to be $3.87, up from $3.23 a year ago [1] Market Sentiment - Microsoft shares have declined approximately 11% since the last earnings report in October, where the company exceeded estimates but announced significant AI infrastructure investments [1] - Analysts remain bullish on Microsoft, with 14 out of 15 recommending a buy, and a mean price target of around $615, suggesting nearly 30% upside from the recent close [1] Investor Concerns - There are concerns regarding the costs associated with Microsoft's AI buildout, which may overshadow the anticipated strong earnings and revenue growth [1] - Investors are particularly interested in insights regarding capital expenditures and projections for the Intelligent Cloud segment, including Azure [1]