YF+ investment idea of the day: Microsoft

Yahoo Finance's Jared Blikre breaks down the Yahoo Finance Plus investment idea of the day.

Video transcript

ALEXIS CHRISTOFOROUS: Want to get to our Yahoo Finance Plus Investment Idea of the Day, a bullish call on, perhaps no surprise, Microsoft, after its big earnings beat this week. What are the details there?

JARED BLIKRE: That's right. This is a fundamental analysis brought to you by Argus Research. And this is something that pops up on your YFI Plus desktop every day. And this is not surprise, as you said, Alexis, after their very, very strong earnings. So they're maintaining their guidance, also maintaining the buy and their long-term price target of $371. That's about $70 above the current price.

Here are some of the reasoning. They're saying Microsoft's revenue gains were broad based in fiscal-- excuse me, second quarter '22, as the company reported 22% adjusted EPS growth on 20% revenue growth. The Azure and cloud services business again led the way in the second quarter, though all divisions contributed to the better than expected results, raising their full year '22 non-GAAP EPS estimate. I'm not going to go through the numbers there.

And just skip to the end, where it says CEO Satya Nadella has pivoted Microsoft toward high value commercial and cloud application businesses, just the right product set as enterprises accelerate their digital transformation. So that's what we got on Mr. Softee, guys.

ALEXIS CHRISTOFOROUS: All right. Thanks a lot, Jared Blikre. We'll see you a little later on for the recap in oil.