Tuesday 27 April will be the ‘blockbuster’ day this week for the quarterly financial reports of corporate companies in America, as Microsoft Corp. and Alphabet Inc. (Google) are due to report the Q1 2021 earnings and financial statements of their respective companies.
The value of Microsoft (MT5: #Microsoft) hit nearly $2 trillion ahead of its financial report after the market closed on Monday. Analysts forecast Microsoft’s financial report to remain strong with an increase in revenue of $41 billion, up 17% from last year, with a return per share of $1.78, compared to $1.40 last year. Microsoft’s stock price soared to an all-time high where it closed at $261.34 at the end of the New York session, an increase of over 18% in the current year. The company’s flagship Azure and Office 365 Cloud products are expected to remain strong and analysts see Microsoft’s enterprise sector and hardware sales rising again in early 2021. Analysts from major banks see the possibility of Microsoft shares continuing to soar with Wedbush seeing a $300 share price target while Citi is projecting an increase to $302 (previously $292) and JPMorgan puts Microsoft shares in the ‘Overweight’ category.
Alphabet Inc, (MT5: #Alphabet) which is the parent company of Google, is also expected to report its first quarter 2021 quarterly report on the same day, which analysts expect to be positive. After unexpected financial reporting results in the 4th quarter of 2020, the consensus return per share rose to $15.88 per share, up more than 60% from last year’s return. The company’s revenue is expected at $51.68 billion ($41.15 billion last year), an increase of more than 25% over last year. Revenue expectations increased due to the company’s resumption of revenue in post-Covid-19 digital advertising as well as the development of Google Cloud’s key business products. The #Alphabet share price is now also at an all -time high, closing at $2,326.59 at the end of the New York session.
Alphabet’s stock price has risen more than 80% over the past year, much higher than the S&P500 (USA500) gains which recorded gains of over 49% over the same time interval.
Most market analysts put Alphabet shares in the ‘Buy’ rating category with none at all placing it in the ‘Sell’ rating category, while the market projection for Alphabet’s price in the near term is at $2,509 per share.
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Tunku Ishak Al-Irsyad
Market Analyst
HF Educational Office – Malaysia
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