Microsoft Stock Heads for the Clouds After Q4 Earnings. Is It Too Late to Buy MSFT Here?

Microsoft (MSFT), one of the "Magnificent 7,” recently delivered a strong quarter that gave markets plenty to think about. On July 30, shares jumped 9% in extended trading after the company posted fourth-quarter results that beat expectations on both revenue and earnings. Fiscal Q4 revenue guidance had already been set high by CFO Amy Hood, with a range between $74.7 billion and $75.8 billion. 

The actual results outpaced that range, marking Microsoft’s fastest growth rate in over three years. Investors did not take long to react. MSFT stock surged past $550 after hours and continued to climb the next day. On July 31, it hit a session high above $555, pushing its market capitalization to around $4.1 trillion. That made Microsoft the second company after Nvidia (NVDA) to cross the $4 trillion mark.