Microsoft Stock Forecast 2023: Will Microsoft Go up in 2023?

Microsoft Stock Forecast 2023: Will Microsoft Go up in 2023?

Microsoft Stock Forecast 2023: MSFT is technically bullish. Microsoft Stock Price Prediction for the next 12 months is $289.

Read: Will Microsoft Stock Go Up in 2023?


Latest MSFT Price

Microsoft Stock Performance in the last 12 months

  • 1 Month: +4.8%
  • 6 Months: -4.9%
  • 1 Year: -18.1%

Microsoft Stock Price Prediction for the next 12 months

Average MSFT Stock Forecast for the next 12 Months$289
Jefferies$270
DA Davidson$270
UBS$250
Credit Suisse$365

Microsoft Stock Price Prediction for next 5 years (Aggregated)

Microsoft Stock Price Prediction 2023 is $315

Microsoft Stock Price Prediction 2024 is $374

Microsoft Stock Price Prediction 2025 is $421

Microsoft Stock Price Prediction 2026 is $479

Microsoft Stock Price Prediction 2027 is $521

Microsoft Stock Technical Analysis:

MSFT is once again surging. Microsoft was trading over $300 in the last week of March 2022. However, in the first week of November 2022, MSFT was trading between $210 and $215. Microsoft stock price surged again and by the mid of December 2022, MSFT was over $260. The first week of January 2023 saw MSFT prices falling close to $220.

Microsoft is now on the verge of rising over $250 but MSFT remains below the 52-week high of $320.88 while the 52-week low price of MSFT is $213.43.

Performance on the last Trading Day

  • Open Price: $248
  • Close Price: $248.16
  • Gain/Loss: +0.06%
  • Overall Market Cap: $1.84 T

Indicators:

image 629

Microsoft is technically bullish. It closed higher on the last trading day and it is likely to open higher on the next trading day. On the above chart, MSFT is on the uptrend and the net MSFT price is now above the 50-day and 200-day moving averages. The 50-day moving average is around $237

The 200-day MA is around $240 and after breaking above it MSFT started to move within the bullish zone. On the upward side, $256 is the resistance for MSFT for the next trading day. An increase in the number of buyers could help MSFT break above this resistance.

The RSI is 65.45 and it is on an upward trend. On the RSI chart, the sellers have been outnumbered by the buyers. The RSI is likely to rise further and enter the over-brought zone.

Overall the momentum is bullish.

image 630

The Stochastic RSI for MSFT is within the over-purchased territory. The signal is a buy as the Stoch RSI has now crossed the 14-day MA from below.

The MACD series proper line is within the bullish zone. After retesting the 9-day EMA it is once again moving higher. The trading volume has risen. The signal is a buy.

  • Stoch RSI: Bullish
  • MACD: Buy
  • RSI: Buy
  • Moving Averages: Buy
  • Overall: Buy

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Microsoft Stock Forecast Today

Overall OutlookPartially Negative
1. Market's WisdomPartially Negative
1a. Market DataNeutral
1b. Technical RecommendationSell
2. Crowd's WisdomNeutral
2a. Social Media BuzzSteady
2b. Social Media SentimentNeutral

Will Microsoft Go up In 2023?

  • The expectation of stellar growth from Azure- Azure is the cloud computing wing of Microsoft which has seen some stellar growth in the last few quarters. For example, in the first quarter of 2022, Microsoft reported a 50% increase in Azure revenue, which dropped down to 40% by Q4 2022. In Q1 2023, the results for which were reported on October 25th, Azure revenue was up 35% which is still better than other segments of Microsoft business.

However, with the macroeconomic headwinds easing out in 2023, Azure revenue is expected to shoot up again to mid-50% growth. Also, the Intelligent Cloud segment, which is primarily made up of Azure revenue contributes to around 40% of the company’s revenue in each quarter.

According to Fortune Business Insights, the cloud computing market is expected to see a CAGR of around 17% between 2022 and 2028 and Azure is responsible for 21% of market stock, the second largest after Amazon Web Services, Microsoft is in a big beneficial position to cash in from the growing segment.

  • Acquisition of Activision Blizzard – Microsoft sold its first Xbox console in 2001, and since then it has lost every console battle with Sony’s PlayStation. However, the tide is turning soon i.e., the margin between PS5 and Xbox series X/S is narrowing as seen in 2022.

Additionally, Microsoft is using its financial power over Sony to make acquisitions at Xbox Game Studios. The most important deal is a $68.7 billion offer to buy out Activision Blizzard. This deal is expected to close during Microsoft fiscal 2023, ending in June. With this, Microsoft will offer the most comprehensive catalog of gaming. So, instead of selling more consoles, it can enlarge its Xbox users and can hike subscription fees.

Activision Blizzard will give Microsoft a base of 361 million players and help it reach the 1 billion mark. As the gaming industry is shifting from core hardware PC service to subscription service, Microsoft is poised to gain big with its cash power.

  • Netflix chose Microsoft for its ad-supported option- Earlier this year, everyone was amazed when Netflix announced a plan to come up with an ad-supported version to boost revenue and make up for lost subscribers. In July 2022, they have chosen Microsoft as an option to go with an ad-supported version.

Google and Comcast were the front runners & Microsoft was like a dark horse. But the argument that Microsoft does not have its streaming service helped them win the battle against the likes of Google and Comcast. They acquired digital ad business Xandr from AT&T in 2021.

After this acquisition, Microsoft can go to any company for digital ad service and can claim that it has capabilities and there is no direct competition also as Microsoft does not have a streaming service of its own.

In 2023, Microsoft can win can crack more such ad revenue deals and can add to its revenue a big amount. Also, the ad industry which has seen a major downfall in 2022, is expected to stand out in 2023.

Also Read: Microsoft Stock Split

Microsoft Stock Forecast 2023: Bear Case

  • The bad outlook – Microsoft’s Q1 fiscal 2023 results were a mixed bag. The revenue grew 11% YoY to $50.1 billion and the Intelligent Cloud segment grew 20% to $20.3 billion. However, they were a few concerns that raised the eyebrows of analysts and investors.

First of all, its highest growth segment Azure’s growth story deaccelerated i.e., it grew 50% in FY 2022 Q1, 40% in Q4, and now only 35% in Q1 FY 2023 despite that investors were expecting better numbers from Azure. But more worrisome is the overall growth outlook for Q2 FY 2023. Overall revenue is projected to grow only 2% YoY to $52.85 billion, missing analysts’ Q2 guidance of $56.05 billion by a fair distance.

Furthermore, Azure growth is expected to slow down even more to only the low 30% range. Although, investors can digest ups and down in the Personal Computing segment, but, do not want to see slowing growth in Azure, especially when its peer Alphabet’s Google Cloud saw momentum in recent quarters and is quite bullish going into the final quarter of 2022.

In 2023, If Microsoft reports weak guidance for its Q3 and Q4 for fiscal 2023 ending in June for any reason, it will certainly bring down its stock price as it did by more than 7% on October 26th, 2022.

  • De- Growth in Personal Computing segment –Consumer demand has fallen across industries due to the rising cost of living, but the PC market is the one with the hardest hit. According to Gartner, PC shipments fell 19.5% in June- September quarter. When AMD announced a shortfall in revenue in the third quarter of 2022 due to plummeting PC sales, Microsoft stock fell 4.5% in a single day.

In the Q1 fiscal year 2023, Microsoft reported a de-growth of 16% in the Personal Computing segment YoY which constitutes about 30% of the overall revenue of the company. With the recession impending in the first half of 2023, it is expected for more de-growth.

Microsoft Stock Forecast 2023: Conclusion

Is it Safe to Bet on Microsoft in 2023?

To conclude, Microsoft stock has fallen 31% since January 2022. While it has sailed the economic downturns better than its peers, the important question is what 2023 holds for Microsoft stock.

However, it has to be believed that 2023 will be the year for Microsoft due to a couple of reasons. First and foremost is its diversification of business i.e., it is no longer only a Windows company and its cloud computing segment stands out among others. Its buyout of Activision Blizzard and partnership with Netflix will mark new avenues of revenue in 2023.

Trading at a P/E of 24.85 is not very cheap but it is much below its historical value of the 30s in the last couple of years. Therefore, Microsoft stock will add great value to anybody’s portfolio in the coming year.

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.

Vineet Agarwal

CrowdWisdom360

CrowdWisdom360

CrowdWisdom360 Admin

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