So Microsoft Stock is reporting earnings tomorrow and I Want to talk about the details of everything you need to know prior to Microsoft Stock reporting Earnings What's going on? Team: It's Ricky here with Technical Solutions Hope Videos are all having an amazing hope. Hopefully you guys all had an amazing day and you're getting ready for this tomorrow. So for those that are unaware, we are entering earning season. so what that means is there's you know a bunch of these companies that are publicly traded.

They're going to start reporting earnings. You might have heard of these companies such as: Microsoft such as: Tesla Those two companies alone report earnings this week Microsoft reports earnings tomorrow and you guys can actually look a little bit more into this. The actual earnings itself should be after the market closes tomorrow on the 24th of January One thing that's really cool about the Weeble trading application is under the markets tab. What you can click on is this little earnings calendar and the great thing about this is you can select the date and it actually provides for you a list of stocks that actually report earnings that day.

And if I scroll down far enough I should be able to see that Microsoft Microsoft Corp 124 2023 reports AMC Which means after the market closes. so again, this is all available on Weeble If you guys haven't downloaded the Weeble trading application, that is the fifth Link in the description down below. make sure that you use my link because if you do and when you deposit 100, you will earn up to 12 free shares just by using my fifth Link in the description down below. But the great thing about this is that well, let's talk about Microsoft earnings expectation, right? It's not just about what is being reported, but it's also as well as the guidance.

So there's two parts to these actual reports. First part is when they report their earnings, there's an expectation for their EPs and there's an expectation for their revenue. So this is their earnings per share. Microsoft has an expected earnings per share of 2.3 2.31 The great thing about that is that it comes in above 2.31 The market will most likely around.

The stock itself will most likely react in a positive way, but also it has its Revenue expectation of 53.17 billion. Now if Microsoft comes in with a higher Revenue than expected, so let's say it comes in at 54 billion for Q4 of 2022.. the great thing about that is that it comes in higher than the market will most likely react in a positive way. Now of course, if one comes in lower and one comes in higher, that will determine and pretty much cap the overall Market's reaction.

Now if they both come in lower, then the market could potentially react in a negative way. One thing that I also want to talk to you guys about is its guidance. It also has an earnings call which means that a couple hours after it reports its quarterly earnings and then has a guidance call pretty much setting expectation for up and coming quarters. This is the second wave that's very, very important.

Sometimes even more important than the actual earnings report themselves because they might have reported a great Q4 but maybe they don't have a great q1 and or a great Q2 that they're gonna. you know, pretty much set that expectation for. So this is pretty much where they're going to be setting the expectation during that guidance call for up and Coming Quarters. Now not just that, but again, just like the CPI data reports, one of the things that I want to remind you is remember the higher the price is based off of recent patterns for that specific stock, That means that something is already being factored in leading up to the actual earnings report.

So if this stock Microsoft were to be trading at 262, which it's not right, shooting at 242. But if it were to be trading at 262, I would be very concerned if I was holding Microsoft stock because, well, it's about to report quarterly earnings, right? They don't have the best expectation. Their expected growth is set to be around 30 percent year over year, and if they don't meet everything with their earnings per share, their expectation of growth, their expectation of Revenue. It's not going to take much.

Remember, just like the inflation reports, when the actual price itself is super overextended, when it's very overbought, when It's very overpriced already prior to the report, it's not going to take much for it to cause the stock to retrace back right? Because the way that I'm looking at this is: these are oversold levels and overbought levels. And just like if Microsoft stock were to be down here right right around 214, it probably if it was trading at 214, it wouldn't take much for it to react in a positive way because of how oversold it is I just want you to take that price range into consideration leading up to its actual reporting because something has already been factored in at the current price point of 242.50 am. and if you look at it, it barely gained nearly one percent on the day. But if you look at the overall NASDAQ Market The NASDAQ Market had a great performing day, so you can see that there's some uncertainty with Microsoft.

But as right now I'd say that it's kind of in the middle, right? We're not very overbought, we're not very oversold. so as long as tomorrow's reporting for its actual earnings report is as expected, it should hopefully maintain that price level. Now the last thing that I want to share with you is I like to keep my videos super short and sweet and very simple to understand. The last thing that I want to share with you is if the stock does react in a positive or negative way.

just understand that because of this market cap, Microsoft has a market cap of 1.81 trillion dollars. That's one of the larger market caps for a lot of the companies that are publicly traded. There's not a lot of companies that are in the trillion dollar market Gap in comparison to the billion dollar market cap. And the reason I'm sharing that with you is because of the weight, the influence that it has to other markets.

Microsoft trades under the NASDAQ trades under the S P 500. So therefore, if Microsoft reacts in an excessive, either positive or negative way based off of what it reports, it will influence other markets. And if it influences other markets such as NASDAQ or S P 500, you might be invested in Spotify. But depending on how Microsoft reports because of how much influence it has to those indexes, it can move whatever stock you're invested in because that might be a part of the NASDAQ as well.

I'm just giving you an example of that. Now, it doesn't mean that you have to make an impulsive decision of like oh my, God Microsoft is reporting earnings. The reason I'm saying this is because I just want you to be aware. Yes, it can influence other markets, but it's most likely a short-lived influence again, as it's just the one stock that doesn't make up the entire index for the S P 500 and or for the NASDAQ.

If you ever want to look into this, you can actually see the companies that make up the S P 500 and the NASDAQ and actually see how much weight how much influence they have to the overall Index right? And the great thing about that is well, by understanding that let's say when Apple stock reports earnings I know that Apple stock has a huge influence on both the S P 500 and the NASDAQ. So then you can better prepare for mentally that when Apple stock reports earnings that it can begin to shift whatever other stocks you might be invested that are part of either NASDAQ or S P 500. So I wanted to talk to you guys about overall earnings expectation I Wanted to talk to you guys about the overall oversold and overbought range and then as well as I wanted to talk to you guys about the influence that larger stocks can have on overall markets. With that being said again, the stock is going to be reporting earnings after the market closes tomorrow January 24th I'm thinking of live streaming it, but I'll leave it up to you guys if by tomorrow, one hour before it reports earnings.

If you get this video to over 1500 likes, I'd be more than happy to host that free live stream here on YouTube. But I'll leave it up to you guys right? Last time we didn't host it because you guys took too long to get it to 1500 likes. So if it's not too much to ask I Just want to make sure enough people show up. Smash that like button subscribe to the channel you need to turn on your post notifications.

so YouTube alerts you when it is that. I Go live and I'd be more than happy to host that live stream for Microsoft earnings which is again going to be tomorrow after the market closes. I Really do appreciate you guys time. Hope that we earned your thumbs up! Please consider subscribing and friendly reminder: I Do Trade Live Every single day! So if you're tired of guessing and you're ready to start learning again I Trade Live! Which means that you get to see my entries, my exits, and most importantly, hear my thought process behind both my green trades and my red trades.

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