From Seekingalpha · Mott Capital Management · · 50s
Microsoft Stock Could Drop After Q1 Earnings
Microsoft's stock may fall sharply if Q1 earnings miss expectations.
In brief
Microsoft's stock may fall sharply if Q1 earnings miss expectations. Microsoft's stock could drop below $500 if Q1 earnings miss expectations. Originally reported by Seekingalpha.
Microsoft Q1 Earnings
Microsoft Corporation must deliver a significant earnings and guidance beat to sustain its bullish momentum near all-time highs.
Option Market Positioning
Option market positioning and technicals indicate a tight $500, $555 post-earnings trading range, with elevated volatility and risk of downside if results disappoint.
Consensus Expectations
Consensus expects Q1 revenue of $90.6B (+16.7%) and EPS of $4.72 (+14.3%), with capex more than doubling to $46.6B.
Risk of Downside
A failure to exceed expectations risks triggering selling flows and a potential drop below MSFT's $500 support, possibly down to $480.
The key point
Microsoft's stock could drop below $500 if Q1 earnings miss expectations.
