Microsoft Stock Surges 28%, But Can It Reach $600?

Microsoft stock has experienced a significant surge of 28% over the past month, reaching $490.39. This rise outpaces other technology stocks, with the State Street Technology Select Sector SPDR ETF (NYSEARCA:XLK) gaining only 3%. Analysts are divided on whether this move is a re-rating or a melt-up.

The Wall Street consensus price target for MSFT stock sits at $569.45, while the 52-week high is $549.2, making $600 a challenging goal to achieve. With 14 strong buy, 40 buy, 3 hold, and zero sell ratings on Microsoft stock, analyst positioning is unusually clean.

Microsoft's July 29 earnings report delivered non-GAAP EPS of $4.74 that beat consensus by 11.81%. Revenue came in at $90.01 billion, up 17.8% year over year, extending Microsoft's streak of five consecutive quarters topping consensus EPS.