Thu Apr 03 15:40:00 UTC 2025: ## Tech Sell-Off Slams Microsoft Despite Strong Earnings

**NEW YORK, April 1, 2025** – A broad sell-off in technology stocks on March 31st dragged down even tech giants like Microsoft (MSFT), despite the company reporting strong second-quarter earnings. While the Dow and S&P 500 saw gains, the tech-heavy NASDAQ continued its downward trend, with MSFT shares falling 1.36% and dipping below their 50-day moving average. The stock is now trading at levels unseen since January 2024, down 12.5% year-to-date.

Microsoft reported robust revenue growth of 12% year-over-year, reaching $69.6 billion, fueled by a $13 billion contribution from AI initiatives. Its Intelligent Cloud and Productivity & Business Processes divisions showed particularly strong growth of 19% and 14%, respectively. While Personal Computing revenue remained flat at $14.7 billion, analysts anticipate a boost following the planned October 2025 end of Windows 10 support. Non-GAAP earnings per share rose 10% to $3.23.

Despite the strong performance, Microsoft forecasted slower growth in the next quarter, though still within double-digit revenue gains. The company plans to continue significant investment in AI. Currently trading at a P/E ratio of 30.50, MSFT is above its 15-year average but slightly below its three-year average. Analysts remain bullish, with a consensus price target of $508.86, representing a potential upside of 36% from its March 31st closing price. Some analysts predict even higher price targets, reaching as high as $595. Technical indicators suggest the stock may be oversold, hinting at potential buying opportunities. The recent drop, however, underscores the current volatility in the tech sector.

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