Microsoft Msft: Microsoft and Amazon Inc

microsoft msft: Shares closed at a record high 138.40 on Thursday, and are up 36% year to date, compared with the 31% gain in the iShares Expanded Tech-Software Sector ETF IGV, 0.21% In comparison, the S&P 500 index SPX, 0.46% is up nearly 20% for the year, according to Market Watch. With Azure revenue rising 73% in the last quarter from year ago levels, and shaping up as the company's fastest-growing segment, investors are concerned whether that pace can be sustained and whether Microsoft can continue to chip away at Amazon Inc.'s AMZN, 0.50% dominance in the public cloud market. Microsoft MSFT, 0.36% is scheduled to report fiscal fourth-quarter earnings after the bell on July 18. Evercore ISI analyst Kirk Materne, who considers Microsoft a best-in-class stock with a price target of 165, said investors may need to be patient in the near-term with the stock given its run-up, but sees a good long-term risk/reward for it, especially given the good first half for software companies. In fact, when looking at the performance of software companies on a 1H vs. 2H basis over the last 10 years, strong 1H performance is usually followed by a slower 2H not exactly a shock . What to expect Earnings Of the 30 analysts surveyed by Fact Set, Microsoft on average is expected to post adjusted earnings of 1.21 a share, up from the 1.19 a share expected at the beginning of the quarter. As we head into 2H, our general view is that while the long-term demand drivers for the group remain intact, investors will need some patience as stocks digest 1H gains, Materne said. (news.financializer.com). As reported in the news.