Microsoft Earnings Preview: Traders Anticipate 5% Stock Swing Amid AI Spending Concerns
Microsoft Corp. faces heightened volatility expectations as options markets price in a potential 5% MOVE in either direction following its fiscal Q2 earnings report. The tech giant's shares have retreated 11% since its October earnings, when record AI infrastructure spending plans overshadowed earnings beats.
Investors will scrutinize capital expenditure guidance and Azure growth metrics, with the stock's AI premium now in question. A 5% swing from Tuesday's $481 close implies a trading range between $459 and $502 by week's end—a critical test for one of 2023's market leaders.