Stocks to Watch Next Week – Microsoft

Over the next five days, nearly a third of the S&P 500 companies, industrial names like Boeing (NYSE:BA) and Caterpillar (NYSE:CAT), as well as tech giants like Facebook (NASDAQ:FB) and Amazon, are with expectations for the rest of this year. It is scheduled to publish its latest figures. Amid strong economic recovery signals, investors are concerned about global supply chain disruptions that are driving prices up and threatening future growth. Nearly 84% of companies that had previously reported exceeded estimates. According to I/B/E/S data from Refinitiv, earnings are expected to increase 34.8% year-on-year so far, based on actual reports and forecasts. During this crucial week for the third quarter earnings season, we'll focus on three key tech giants whose earnings can help clarify whether they're still taking advantage of the pandemic-driven demand boost that has driven their stocks to record highs in recent months:

3. Microsoft

Microsoft (NASDAQ:MSFT) will announce its fiscal 2022 first-quarter earnings after the market close on Tuesday, October 26. According to estimates, the software and cloud computing giant is expected to release $2.02 EPS on sales of $43.93 billion. In retrospect, Microsoft should show solid momentum fueled by an increase in technology investments and the strength of its cloud computing and core Office product lineup. Washington-based software and infrastructure company Redmond is taking advantage of the increasing demand for connectivity as people continue to work from home and interact socially. In addition, investors expect businesses and governments to continue to spend on their cloud computing transition, which has been a major expansion area for the company in recent years. Azure, Microsoft's cloud business, saw sales increase 51% in the previous period. Azure revenue increased 50% year-over-year for the previous two quarters to account for currency fluctuations. MSFT shares closed at $309.16 on Friday after gaining 39% this year.   Stocks to Watch Next Week – Microsoft Source: Invesing.com You may also be interested in: Stocks to Watch Next Week – Apple