Microsoft Clears Key Moving Average Hurdle Despite Laggard Performance

Microsoft (MSFT) stock has finally cleared a significant hurdle as it trades above its key 200-day moving average by the widest margin since October, according to Yahoo Finance AlphaSpace analysis.

The tech giant's stock has relatively underperformed for most of this year amid concerns over overspending on AI, but the narrative is shifting. Microsoft recently posted a staggering $90 billion in revenue in its fiscal fourth quarter, up 18% year-over-year, with Azure and other cloud services growth surging 43%. The company also demonstrated operating leverage, increasing operating income by 18% to $40.6 billion.

CFO Amy Hood gave Wall Street confidence by pairing disciplined expense control with a whopping $10.2 billion cash return to shareholders via dividends and buybacks in the quarter alone. Profit estimates have trended higher since the late-July earnings report, according to Yahoo Finance AlphaSpace data.