Microsoft will be reporting Q3 2020 Earnings on April 29

Analysts are expecting close to $36.9 bn in revenues for Q3 2020. This represents a revenue growth estimate of around 20% YOY. Microsoft is in strong position to continue its business uninterrupted even during COVID-19 outbreak. However, 20% growth rate was baked into valuations at the end of January, before economic disruptions took place. Microsoft’s own guidance for Q3 2020 is - estimated revenue of $34.1 to $34.9 billion, which is lower than analysts’ estimates of $36.9 billion. Given a backdrop of economic slowdown, it will be hard for the company to exceed, and possibly even meet these expectations. The price action on the chart shows a lower top at $180 per share vs. $187 in March and RSI crossed pointing downward. In conclusion, Microsoft will remain one of the strongest drivers on the market. However, all the expectations may have been already priced in.