Wide Moat Microsoft News Today

We see results as reinforcing our thesis centering on the proliferation of hybrid cloud environments and Azure, as the firm continues to use its on-premises dominance to allow clients to move to the cloud at their own pace. Solid results and guidance hold our fair value estimate stable at $352 per share and we see shares as undervalued.

Microsoft remains impressive in its ability to drive both growth and margins at scale and we think there is more to come on both fronts. We see results as reinforcing our thesis centering on the proliferation of hybrid cloud environments and Azure, as the firm continues to use its on-premises dominance to allow customers to move to the cloud easily and at their own pace.

We like the Activision Blizzard acquisition, as Microsoft bolsters its already strong gaming division.

Quarterly strength and good guidance drive our fair value estimate to $345 from $325 per share and we continue to see upside to this high-quality name.

Wide-moat Microsoft is benefiting from a second wave of digital transformation as well as strength in gaming, which helped the company once again drive material upside compared with its revenue and EPS outlook for the quarter.