In May 2025, analysts updated their assessments of Microsoft stock, presenting several price targets and market forecasts. This information is of great importance to investors as it can influence the future performance of the company and potential investment decisions. Here are some key points:
Price Development and Price Targets
- Price Development in May: The Microsoft stock rose impressively by +16.47% in May, reaching 460.36 USD, making it one of the top 3 Dow Jones gainers for the month.
- Price Targets: Analysts have raised the price target for Microsoft stock to 540 USD, which represents a potential of about 19% compared to the closing price from Wednesday. Some analysts even see price targets of up to 550 USD.
Company Performance
- Financial Data: Microsoft reported a revenue of 70.1 billion USD (+13%) in the third quarter of the fiscal year 2025, an operating income of 32.0 billion USD (+16%), and a net profit of 25.8 billion USD (+18%).
- Cloud and AI: Microsoft Cloud achieved a revenue of 42.4 billion USD (+20%), with Azure standing out with a revenue growth of +33%. These areas are crucial for the company’s growth.
Strategic Measures
- Job Cuts: Microsoft plans to cut around 6,000 jobs, which corresponds to about 3% of the workforce. This measure could save over 1 billion USD in the fiscal year 2026 and help offset rising depreciation and investment costs.
- Investments in AI: Part of the savings is intended to flow into research and development, particularly in key AI initiatives.
Market Forecasts
- Analysts’ Opinions: Analysts are convinced that Microsoft’s investments in AI will pay off and see the company on a promising growth trajectory.
- Growth Potential: The strong performance in the cloud and AI sectors is seen as a key factor for future growth.
In summary, analysts are optimistic about the future development of Microsoft, particularly due to the strong performance in the cloud and AI areas as well as the strategic measures for cost efficiency.