As per the deal, FB would expand the amount of Azure’s supercomputing power it uses to accelerate its own artificial intelligence (AI) research. Jerome Pesenti, VP of AI at Meta, commented in the press statement:
Chart and analysis
Shares of the company ended up flat in the after-hours trading after the news of the deal was announced. More recently, the shares started to trade below all daily Simple Moving Averages, where they remain still. Stable volumes could indicate that the shares are looking to stabilize though a dip below $245, could mean more pain. Nonetheless, analysts give the shares a strong buy rating, agreeing that for the next 12 months, the average price could reach $357.10, representing an increase of 35.99%, from the current trading price of $262.52.
Cloud growth amid worries
On April 26, MSFT released its earnings showing that the cloud growth was above expectations seeing a 46% year-over-year (YoY) increase in Azure’s revenue. The strong cloud showing by the company enables it to have $49.4 billion in sales. Despite record results, analyst Brent Thill, Jefferies analyst, was disappointed and speaking on CNBC’s ‘Closing Bell’, he said: Finally, on May 23, Jeffries came out with wide price-target cuts among other stocks including Microsoft, whose price was cut to $325, a share from $400. Stiffening economic headwinds and the risk of the looming recession were mentioned in particular as the main reasons for the price cuts. Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
