Microsoft hits a record high after crushing earnings

    Microsoft beat on both the top and bottom lines in its first quarter. Shares are trading at a record high on Friday.

Shares of Microsoft hit a record high Friday morning after the company’s quarterly report beat on both the top and bottom lines.

The Washington-based company on Thursday reported adjusted earnings per shares of $0.84 versus the $0.72 expected by Wall Street. Revenue was $24.5 billion compared to an expected $23.56 billion.

Shares spiked more than 8% Friday morning, trading as high at $85.72 after the opening bell. The previous record was $79.34, hit earlier this week.

Investors appear to be pleased with the progress Microsoft showed in its all-important cloud computing business. In the just-completed quarter, that business met and exceeded the company’s goal of $20 billion in annualized revenue.

The results led to RBC Capital Market’s Ross MacMillan has raised his target to $88 from $85, citing Microsoft’s cloud successes.

Wall Street now has a consensus target of $89.72 for the stock, according to Bloomberg – 7.14% above where shares were trading Friday morning.

Microsoft is up 34.25% this year.

Microsoft stock price

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