Microsoft Shares Soar 0.89% in Two Days, Reach 2024 High

Microsoft (MSFT) shares rose 0.04% today, marking the second consecutive day of gains, with a total increase of 0.89% over the past two days. The share price reached its highest level since July 2024, with an intraday gain of 0.72%.

Over the past five years, the strategy of buying MSFT shares after they reached a recent high and holding for one week yielded strong results. The strategy achieved a 67.42% return, surpassing the benchmark return of 44.90% by 22.52%. Although the maximum drawdown was -17.75%, the strategy showed resilience with a Sharpe ratio of 1.06, indicating a reasonable risk-adjusted return. The volatility of the strategy was 23.03%, which may be considered moderate. The compound annual growth rate (CAGR) was 24.48%, reflecting the strategy's ability to generate consistent returns over the period.

Microsoft's AI and Azure sectors are crucial components of its long-term growth strategy. Analysts are optimistic about the significant price targets and have given the company an "Outperform" rating, indicating strong confidence in its future performance.

On May 13, 2025, Microsoft announced plans to reduce its global workforce by 3%, which is estimated to save the company $2.5 billion. This cost-cutting measure is seen as a positive development, as it allows Microsoft to streamline operations and focus on high-growth areas.

Analysts maintain a bullish outlook for Microsoft, suggesting that its stock has the potential to rise by 20% due to its attractive risk/reward profile for long-term investors. This optimism is driven by the company's strong performance in the March quarter, which showed earnings growth of 18% and revenue growth of 13%, primarily driven by gains in cloud and AI sectors.