Cloud is a ‘once in a generation’ opportunity for Microsoft, analyst says – CNBC

Microsoft indeed tends to outperform a month after beating earnings expectations by a margin of 1.5 standard deviations or more, according to Kensho data.

“Typically after a move like this, you get follow-through,” said Carter Worth, head of technical analysis at Cornerstone Macro, on CNBC’s “Closing Bell.” Morgan Stanley managing director Keith Weiss said the company was “hitting all cylinders.”

Nineteen analysts listed in FactSet raised their price targets on the stock. But despite the company’s solid results, not every Wall Street analyst was convinced.

“The lamest thing a sell-side analyst does is downgrade a plummeting stock after a miss,” wrote Richard Davis of Canaccord Genuity. “The second worst action is to upgrade a stock after a good print and the stock has popped. The latter explains our reluctance to upgrade MSFT from HOLD to Buy today.”

— CNBC’s Christine Wang contributed to this report.

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