Microsoft earns Deutsche Bank's 'trust' after 'solid' Q2 results, guidance
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Microsoft's (NASDAQ:MSFT)
second-quarter results and third-quarter guidance are indications that the digital transformation is still intact and customers are making "strategic, long-term commitments" to the tech giant, Deutsche Bank wrote in a note to investors.
Analyst Brad Zelnick, who reiterated his buy rating and $390 price target, noted that Azure's revenue growth of 46% was below buy-side expectations, but a revenue reacceleration starting next quarter helped assuage fears.
"Bottom line, our thesis remains firmly intact, and F2Q/3Q along with management's tone should be viewed as a positive indicator for digital transformation spend into 2022," Zelnick wrote in a note to investors.
Microsoft shares rocketed higher in early Wednesday trading, gaining more than 4% to $302.40, reversing a near 5% decline in after-hours after it reported its results.
Microsoft (MSFT) received a slew of positive reactions on Wednesday, including one from Citi, which said the Redmond, Washington-based tech giant is "living up to the legend."