The latest quarterly earnings report has revealed a better-than-expected performance for Microsoft on the stock market.
In fact, the Nasdaq-listed company’s share price under the symbol MSFT has risen sharply in recent days.
By mid-month it was worth about $212, but has now jumped to over $232, a gain of more than 9% in just over ten days that has taken it to a new all-time high.
Why is the Microsoft stock rising
The fact is that the latest quarterly results have come out, revealing that Microsoft has significantly beaten analysts’ estimates on all metrics.
This is the view of eToro’s Market Analyst, Edoardo Fusco Femiano, who reveals that cyclical stocks in Europe have performed well, with Linde in particular up 1.08%. UBS also did very well, with +2.01% due to a record 137% increase in net profits.
Stock market performance
In the US, both the S&P500 and Nasdaq returned to all-time highs yesterday, again following a series of positive results, notably from 3M and Johnson & Johnson. The Dow Jones is also performing well, and overall sentiment remains positive.
Johnson & Johnson was up +2.7% on the back of better-than-expected 2021 earnings estimates from its coronavirus vaccine, while mask maker 3M closed up +3.26%.
General Electric also rallied +2.73% on a promising outlook and a quarterly increase in operating cash flow.
On the US market, speculation regarding the Biden administration’s new fiscal stimulus package and the $15/hour federal minimum wage are keeping sentiment positive, as the US economy is 70% consumer-based.
In addition, today’s scheduled Fed meeting is expected to keep the current expansionary monetary policy unchanged, although clarifications on inflation risks are awaited.
So while stock markets are still trading at highs, especially in the US, there seems little prospect of a clear turnaround in the near future.