Microsoft Corp. (NASDAQ:MSFT) shares are pulling back Wednesday, giving back some ground after an extended run higher that followed the company’s fourth-quarter earnings report.
- Microsoft stock is under selling pressure. Why are MSFT shares declining?
MSFT Stock Pulls Back After Strong Earnings
Microsoft reported fourth-quarter revenue of $90.01 billion, up 18% year-over-year and ahead of the $87.62 billion analysts had expected, according to Benzinga Pro data. Earnings per share came in at $4.74, topping the $4.24 consensus estimate.
Growth was broad-based across the business. Intelligent Cloud revenue rose 32% year-over-year to $39.3 billion, with Azure and other cloud services revenue climbing 43%. Total cloud revenue across segments reached $59.3 billion, up 27% from a year earlier. For the full fiscal year, revenue totaled $331.8 billion, also up 18%.
CEO Satya Nadella pointed to two milestones from the year: Azure revenue surpassed $100 billion for the first time, and Microsoft 365 Copilot topped 30 million paid seats, which he said reflects growing customer confidence in Microsoft’s ability to power their AI initiatives.
MSFT Stock Looks Overextended After its Run
That divergence points to profit-taking after a sharp run. Even with today’s pullback, Microsoft remains 11.9% above its 20-day moving average of $440.39 and 13.9% above its 200-day moving average of $432.80, an extended setup that often invites buyers to wait for a better entry point rather than chase the stock higher. Momentum indicators aren’t flashing a warning sign, though: the MACD line remains above its signal line with a positive histogram, suggesting the stock’s recent upward pressure has yet to break down.
The moving-average picture carries a mixed signal further out. The 20-day average sitting above the 50-day average is a near-term positive, but the 50-day average has remained below the 200-day average since a January death cross, a longer-term caution flag that can keep larger investors from chasing strength at current levels.
Traders are watching $493.50 as resistance, just above the current price, and $409.50 as support, a level that lines up with the 50-day moving average zone if the pullback extends. Traders are watching $493.50 as resistance, just above the current price, and $409.50 as support, a level that lines up with the 50-day moving average zone if the pullback extends.
MSFT Shares Are Falling
MSFT Price Action: Microsoft shares were down 1.96% at $493.96 at the time of publication on Wednesday, according to Benzinga Pro.
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