El interés en corto de Microsoft da a los inversores una idea del grado en que los inversores apuestan por la caída de las acciones de Microsoft. Los datos de interés en corto se actualizan cada dos semanas.

Microsoft (NASDAQ:MSFT) Bolsa, Informe de interés en corto

Microsoft

Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite. The company is organized into three equally sized broad segments: productivity and business processes (legacy Microsoft Office, cloud-based Office 365, Exchange, SharePoint, Skype, LinkedIn, Dynamics), intelligence cloud (infrastructure- and platform-as-a-service offerings Azure, Windows Server OS, SQL Server), and more personal computing (Windows Client, Xbox, Bing search, display advertising, and Surface laptops, tablets, and desktops).

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Donald Trump anuncia el Proyecto Stargate, una inversión de $500.000M en IA. Oracle, NVIDIA y más tecnológicas registran alzas en la bolsa.

Las acciones de tecnología suben tras anuncio del Proyecto Stargate: inversión récord en IA

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Huawei busca liderar el mercado de chips de IA en China frente a Nvidia, impulsando su procesador Ascend en medio de embargos tecnológicos.

Huawei vs. Nvidia: La batalla por dominar el mercado chino de chips de inteligencia artificial

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Howard Marks analiza señales de advertencia en el mercado, desde el hype de la IA hasta riesgos de sobrevaloración.

Howard Marks advierte sobre señales de burbuja en el mercado: ¿Qué deben vigilar los inversores?

Microsoft Corp

He will remain an employee of the Company to provide transition support and fulfill additional responsibilities until the end of March.
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Management

Christopher Young Informs Microsoft Of His Decision To Resign; He Will Cease To Serve As Executive Vice President, Business Development, Strategy, And Ventures, Effective Immediately - Filing

The S&amp;P 500 briefly hit 6,100 points on Wednesday, reaching a fresh all-time high as Wall Street embraced a powerful mix of strong corporate earnings and President Donald Trump's bold $500 billion artificial intelligence<a href="https://www.benzinga.com/25/01/43139410/softbanks-role-in-500-billion-stargate-ai-venture-seen-as-major-growth-driver-analyst-says"> initiative, dubbed &#8220;AI Stargate.&#8221; </a>
The project, designed to transform America's AI infrastructure, added fuel to a market already cheering on stronger-than-expected fourth-quarter earnings and rising hopes of Federal Reserve interest rate cuts later this year.
Mega-cap technology stocks and semiconductor giants led the charge, pushing the S&amp;P 500 — tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) — higher for the sixth time in the last seven sessions.
By midday Wednesday, the S&amp;P 500 hit 6,100.4 points, narrowly surpassing its previous record of 6,099 set on Dec. 6.
See Also: <a href="https://www.benzinga.com/25/01/43142623/happy-birthday-sp-500-spy-etf-if-you-invested-1000-in-spy-at-launch-heres-how-much-youd-have-today">Happy Birthday S&amp;P 500 SPY ETF! If You Invested $1,000 In SPY At Launch, Here&#8217;s How Much You&#8217;d Have Today</a>
<h3 class="wp-block-heading">AI Stargate: A Game-Changing Investment in AI Infrastructure</h3>
Trump unveiled AI Stargate on Jan. 21. The joint venture unites OpenAI, led by Sam Altman, SoftBank, backed by Masayoshi Son, and Oracle Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>) to build next-generation AI infrastructure.
The project aims to invest up to $500 billion over four years to develop massive AI data centers across the U.S., starting with an initial $100 billion phase.
Trump hailed the initiative as a &#8220;declaration of confidence in America&#8217;s potential,&#8221; emphasizing its importance in keeping the future of AI technology within U.S. borders. 
AI Stargate is expected to create 100,000 jobs almost immediately, further boosting optimism about economic growth.
<h3 class="wp-block-heading">Earnings Strength Fuels Market Optimism</h3>
While AI excitement dominated headlines, a strong corporate earnings season provided the foundation for the market&#8217;s rally. 
As of Jan. 17, 81% of S&amp;P 500 companies reporting fourth-quarter results had exceeded Wall Street's profit forecasts, while 64% had beaten revenue estimates, according to FactSet.
Mega-cap firms reporting earnings this week — including Netflix Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>), Charles Schwab Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHW#NYSE">SCHW</a>), Prologis Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PLD#NYSE">PLD</a>), Procter &amp; Gamble (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PG#NYSE">PG</a>), Abbott Laboratories (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABT#NYSE">ABT</a>), and Johnson &amp; Johnson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JNJ#NYSE">JNJ</a>) — all topped estimates, reinforcing investor confidence in corporate America&#8217;s strength.
&#8220;The S&amp;P 500's forward profit margin was at a record-high 13.6% during the January 18, 2025, week, up 0.9 percentage points from 12.7% a year earlier,&#8221; veteran investor Ed Yardeni said in a note Wednesday. 
&#8220;Corporate profitability should continue to improve even as Trump's administration faces a big fiscal headwind.&#8221;
<h2 class="wp-block-heading">Tech Titans Drive The Market Higher</h2>
The so-called &#8220;Magnificent 7&#8221; stocks were at the center of Wednesday's rally, with the Roundhill Magnificent Seven ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#NASDAQ">MAGS</a>) climbing 1.5%.
Microsoft Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NYSE">MSFT</a>) surged 4%, while Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) jumped 4.6%, reinforcing their dominance in the AI race. Chip stocks saw particularly strong gains as investors bet on increased demand for AI-related infrastructure. 
Arm Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>), the SoftBank-owned semiconductor design firm, soared 15%—its biggest single-day gain since February 2024.
SoftBank's 2024 annual report had described Arm as providing &#8220;the foundational technology for Artificial Super Intelligence,&#8221; a claim that now appears increasingly relevant as AI Stargate takes shape.
<h3 class="wp-block-heading">Six Stocks Powering The S&amp;P 500's Record High</h3>
Just a handful of companies were responsible for a significant portion of the broader market's surge on Wednesday. 
Nvidia and Microsoft alone contributed 53 basis points to the S&amp;P 500&#8217;s advance, while Netflix, Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), and Oracle Corp. collectively added another 18 basis points.
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Security Name</th>
<th>Price</th>
<th>Weight in S&amp;P 500</th>
<th>1-day %chg</th>
<th>Contribution to S&amp;P 500</th>
</tr>
</thead>
<tbody>
<tr>
<td>Nvidia Corp.</td>
<td>$1,472.46</td>
<td>6.51%</td>
<td>4.55%</td>
<td>+29bp</td>
</tr>
<tr>
<td>Microsoft Corp.</td>
<td>$445.37</td>
<td>6.27%</td>
<td>3.94%</td>
<td>+24bp</td>
</tr>
<tr>
<td>Netflix Inc.</td>
<td>$952.64</td>
<td>0.72%</td>
<td>9.54%</td>
<td>+6bp</td>
</tr>
<tr>
<td>Amazon.com Inc.</td>
<td>$233.46</td>
<td>4.10%</td>
<td>1.19%</td>
<td>+5bp</td>
</tr>
<tr>
<td>Meta Platforms Inc.</td>
<td>$626.13</td>
<td>2.65%</td>
<td>1.57%</td>
<td>+4bp</td>
</tr>
<tr>
<td>Oracle Corp.</td>
<td>$184.92</td>
<td>0.51%</td>
<td>7.15%</td>
<td>+3bp</td>
</tr>
</tbody>
</table>
</figure>
Read now: 
<ul>
<li><a href="https://www.benzinga.com/25/01/43059744/exclusive-can-sp-500-repeat-large-gains-from-donald-trumps-first-term-a-second-time-around-readers-say-this-return-range-most-likely" target="_blank" rel="noreferrer noopener">Can S&amp;P 500 Repeat Large Gains From Trump's First Term A Second Time Around? Readers Say This&#8230;</a></li>
</ul>
Image: Shutterstock

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iShares PHLX SOX Semiconductor Sector Index Fund

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S&P 500 Hits Fresh Records At 6,100: Strong Earnings, Trump's AI Wager Fuel Bull Run

<a href="https://breakingdefense.com/2025/01/army-kickstarts-possible-recompete-of-microsofts-22-billion-ivas-production-deal/" title="https://breakingdefense.com/2025/01/army-kickstarts-possible-recompete-of-microsofts-22-billion-ivas-production-deal/">https://breakingdefense.com/2025/01/army-kickstarts-possible-recompete-of-microsofts-22-billion-ivas-production-deal/</a>

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Watching Kopin; Shares See Volume As Traders Circulate Article 'Army Kickstarts Possible Recompete Of Microsoft's $22 Billion IVAS Production Deal', "Kopin Has Also Said It's Interested In Completing, While Companies Like Palantir May Also Be Eyeing A Bid."

The first U.S. based exchange-traded fund turns 32 years old today and is one of the most<a href="https://www.benzinga.com/etfs"> popular ETFs today.</a>
Here's a look at the history of the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and how much an investment at launch would be worth today. What Happened: Launched with seed funding of $6.5 million, the SPDR S&amp;P 500 ETF Trust<a href="https://www.benzinga.com/news/23/01/30529288/worlds-first-etf-turns-30-heres-how-much-money-youd-have-if-you-invested-1-000-when-it-launched" target="_blank" rel="noreferrer noopener"> became the first U.S. ETF </a>on Jan. 22, 1993.
The ETF was approved by the U.S. Securities and Exchange Commission several years after&nbsp;State Street Corp.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STT#NYSE">STT</a>)&nbsp;applied for the fund.
Initial interest in the ETF was poor and the fund was almost closed before investors came around to the idea of using ETFs as investment vehicles.
The success of the SPY ETF led to other financial institutions launching similar ETFs that track the S&amp;P 500 Index, one of the largest and most well-known stock market indexes.
The&nbsp;iShares Core S&amp;P 500 ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>)&nbsp;and&nbsp;Vanguard S&amp;P 500 Index Fund ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>)&nbsp;launched in 2000 and 2010, respectively.
Today, the three ETFs that track the S&amp;P 500 are the largest in the world according to&nbsp;<a href="https://etfdb.com/compare/market-cap/" target="_blank" rel="noreferrer noopener">ETFDB&nbsp;</a>with the following assets under management:
<ul>
<li>SPY:&nbsp;$623.5 million</li>
<li>VOO: $603.1 million</li>
<li>IVV: $594.2 million</li>
</ul>
After posting its worst one-year performance in more than a decade for the 2022 year, the S&amp;P 500 Index, which features 500 leading U.S. publicly traded companies, with a primary emphasis on market capitalization, saw outperformance in 2023, ending the year up over 20% and riding a streak of winning weeks. The ETF followed up the rebound with a 24.9% gain in 2024.
In 2024, the S&amp;P 500 <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42678368/sp-500-hits-57-all-time-highs-in-record-breaking-2024-magnificent-7-drive-30-of-nasdaqs-surge">reached new all-time highs </a>on numerous occasions, boosted by soaring valuations for technology stocks.
Here are the current top&nbsp;<a href="https://www.ssga.com/us/en/institutional/etfs/funds/spdr-sp-500-etf-trust-spy" target="_blank" rel="noreferrer noopener">holdings&nbsp;</a>of the SPDR S&amp;P 500 ETF at the time of writing:
<ol>
<li>Nvidia Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>): 6.7%</li>
<li>Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>): 6.6%</li>
<li>Microsoft Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>): 6.2%</li>
<li>Amazon.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>): 4.2%</li>
<li>Meta Platforms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>): 2.6%</li>
<li>Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>): 2.3%</li>
<li>Alphabet Inc Class A (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>): 2.3%</li>
<li>Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>): 2.2%</li>
<li>Alphabet Inc Class C (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>): 1.9%</li>
<li>Berkshire Hathaway Class B (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>): 1.7%</li>
</ol>
Read Also: <a href="https://www.benzinga.com/25/01/43059744/exclusive-can-sp-500-repeat-large-gains-from-donald-trumps-first-term-a-second-time-around-readers-say-this-return-range-most-likely">EXCLUSIVE: Can S&amp;P 500 Repeat Large Gains From Donald Trump&#8217;s First Term A Second Time Around? Readers Say This Return Range Most Likely</a>
Investing $1,000 in SPY Stock:&nbsp;While the idea of ETFs was new at the time, investors who followed State Street into the idea of a new investment vehicle to track the S&amp;P 500 would have been pleasantly rewarded.
The SPDR S&amp;P 500 ETF traded at around $43.61 in its first days of trading. A $1,000 investment could have purchased 22.93 shares at the time.
The $1,000 investment would be worth $13,930.20 today based on a price of $607.51 for the SPY at the time of writing. This represents a hypothetical return of $1,293.0% over the past 32 years.
Investors who bought the SPY on Jan. 22, 1993, based on a price of $25.02 adjusted for dividends would have an even larger return. The SPY has an adjusted price of $25.02 when adjusted for dividends, which means a $1,000 investment could have purchased 39.97 shares.
The $1,000 investment would be worth $24,282.17 today. This represents a hypothetical return of 2,328.2% over the past 32 years.
Read Next: 
<ul>
<li><a href="http://= https://www.benzinga.com/etfs/broad-u-s-equity-etfs/25/01/43041374/exclusive-how-high-will-sp-500-go-under-donald-trump-in-2025-readers-are-optimistic-26-say-this">EXCLUSIVE: How High Will S&amp;P 500 Go Under Donald Trump In 2025? Readers Are Optimistic, 26% Say This…</a></li>
</ul>
This article was previously published by Benzinga and has been updated.
Image: Shutterstock

Education

AVGO

GOOG

GOOGL

TSLA

Happy Birthday S&P 500 SPY ETF! If You Invested $1,000 In SPY At Launch, Here's How Much You'd Have Today

The Trump Administration has announced an <a target="_blank" href="https://www.benzinga.com/25/01/43111153/nvidia-and-ai-stock-rises-as-trump-announces-500-billion-stargate-ai-infrastructure-venture" rel="noreferrer noopener">AI infrastructure joint venture</a> in the U.S. named &#8220;Stargate,&#8221; comprised of OpenAI, SoftBank Group (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBF#OTC">SFTBF</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>), Oracle Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>), and Abu Dhabi&#8217;s MGX. The venture will deploy $100 billion initially and up to $500 billion over the next four years.
Masayoshi Son of SoftBank (rated Outperform), Sam Altman of OpenAI, and Larry Ellison of Oracle participated in the press conference at the White House.
Also Read: <a target="_blank" href="https://www.benzinga.com/25/01/43127416/anthropic-gains-big-with-google-backing-aiming-for-60-billion-valuation-and-surging-ai-revenue" rel="noreferrer noopener">Anthropic Gains Big With Google Backing, Aims for $60 Billion Valuation and Surging AI Revenue</a>
Ellison noted that the JV&#8217;s initial ten data center buildings are in Abilene, Texas, with plans to expand to twenty.
Macquarie analyst Paul Golding recalled that Son and President Donald Trump announced in December plans for SoftBank to invest $100 in the U.S. over the next four years while creating 100,000 jobs focused on &#8220;AI and related infrastructure.&#8221;
The OpenAI release on Stargate outlines SoftBank as having financial responsibility, OpenAI operational responsibility, and Son as Chairman of the JV. Arm Holdings Plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>), Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Oracle, and OpenAI are the key initial tech partners.
Golding had been tracking a potential &#8220;mega-project&#8221; at SoftBank, focused on AI, semis, and data centers, for quite some time. In those early reports, the analyst cited that the investment size targeted was ~$100 billion. The breadth of the project type spanned data centers, colocated data center power generation, vaccines, and artificial general intelligence (AGI).
Prior reports indicated Son&#8217;s plan to use an Arm AI chip division to supply chips for new SoftBank data centers starting in 2026 while exploring fusion tech to power them.
Meanwhile, Arm IP is being leveraged in the partnership between Nvidia and SoftBank to develop multi-access edge computing technology for AI over 5G across Japan for deployment in other countries based on fine-tuning from the Japan pilot.
Golding remarked this could eventually be incorporated into Stargate to unlock IoT capabilities, inference at the edge, and other AI-enhanced processes.
While funding considerations and operational bandwidth for SoftBank will be key areas to watch as Stargate gets up and running, participation in a project of this scale alongside heavyweights in the AI space like OpenAI, in Golding&#8217;s opinion, shows how valuable the quality and combination of SoftBank&#8217;s assets and tech investment management capabilities are seen to be, given the time and place in tech and the world.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/markets/emerging-markets/25/01/43096797/huawei-wants-to-take-nvidias-place-in-ai-in-china-shifts-focus-to-inference-over-training" target="_blank" rel="noreferrer noopener">Huawei Wants To Take Nvidia&#8217;s Place In AI In China, Shifts Focus to Inference Over Training</a></li>
</ul>
Photo via Shutterstock

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Reiteration

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Trading Ideas

SFTBF

SFTBY

SoftBank's Role in $500 Billion Stargate AI Venture Seen as Major Growth Driver, Analyst Says

Salesforce Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NYSE">CRM</a>) co-founder, chairman and CEO Marc Benioff took a shot at Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) while laying out his vision for the future of AI Wednesday in a CNBC interview from the <a href="https://www.benzinga.com/topic/world-economic-forum">World Economic Forum</a>.
What Happened: Benioff told CNBC&#8217;s Andrew Ross Sorkin that Microsoft&#8217;s Copilot chatbot has already failed. He claimed that it has &#8220;no adoption&#8221; and is just a repackaged form of OpenAI&#8217;s ChatGPT. 
&#8220;It&#8217;s not what AI was meant to be,&#8221; Benioff said. 
According to Benioff, <a href="http://benzinga.com/topic/ai">AI</a> is meant to be experienced through agents that work in parallel with humans, but he may just be talking his own book. 
Salesforce aims to be a leader in the AI agent space through its Agentforce offering. Agentforce allows customers to build autonomous AI agents that can work with humans to support customers and teams. 
&#8220;That is what AI was meant to be &#8230; Every company is going to become agent-first,&#8221; the Salesforce chief said. 
See Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43097512/apples-ai-advances-cant-offset-chinese-market-slowdown-says-analyst">Apple&#8217;s AI Advances Can&#8217;t Offset Chinese Market Slowdown, Says Analyst</a>
Salesforce has focused on helping companies manage information in the past, but the company is transitioning into a digital labor provider, Benioff said, adding that Salesforce is now focused on supplying digital workers for customers. 
The company is also transitioning its own workforce to make it more digital. Benioff told Sorkin that 2025 will be the first year in the history of Salesforce that the company will not hire any net new software engineers. Instead, digital agents will be handling more and more work, he said. 
&#8220;This is the moment of transformation in our industry that I&#8217;ve been waiting for &#8230; I&#8217;ve never been this excited about our industry,&#8221; Benioff said.
<a href="http://benzinga.com/quote/crm">Salesforce shares</a> were up 1.6% at $332.07 at the time of publication Wednesday, according to <a href="http://pro.benzinga.com">Benzinga Pro</a>.
Photo: Shutterstock.

Events

Marc Benioff Trashes Microsoft Copilot, Says Salesforce Is Becoming A Digital Labor Provider: 'This Is What AI Was Meant To Be'

Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) is committed to restoring parts of Brazil&#8217;s Amazon and Atlantic forests <a href="https://www.benzinga.com/topic/climate-change" target="_blank" rel="noreferrer noopener">for carbon credits</a>.
The company <a target="_blank" href="https://www.ft.com/content/3ac7e92f-bea5-4460-8791-23a2697d8b80" rel="noreferrer noopener">told</a> the Financial Times it inked a deal to buy 3.5 million credits over two years from Brazil startup Re.green.
The deal could be worth approximately $200 million.
In 2023, Microsoft&#8217;s carbon footprint exceeded 17 million tons of carbon dioxide, a 40% increase from 2020.
Also Read: <a href="https://www.benzinga.com/tech/25/01/43008511/broadcoms-latest-san-switch-offers-scalable-energy-efficient-solution-for-growing-storage-demands" target="_blank" rel="noreferrer noopener">Broadcom&#8217;s Latest SAN Switch Offers Scalable, Energy-Efficient Solution for Growing Storage Demands</a>
Data Center Growth: Big Tech giants, including Microsoft, Alphabet Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Google and Amazon.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), remain invested in their data center endeavors, ramping up energy consumption and putting pressure on emission control promises.
The Trump administration deprioritized curbing climate change and prioritized boosting fossil fuel production in the U.S., citing data center energy challenges.
Goldman Sachs flagged <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/41731110/goldman-sachs-sees-early-stages-of-nuclear-renaissance-in-us-analysts-highlight-top" target="_blank" rel="noreferrer noopener">data center energy</a> needs rising 165% by 2030 from 2023, pushing Big Tech, such as Alphabet, Amazon and Microsoft towards nuclear energy solutions.
Carbon Credits and Big Tech: Re.green CEO Thiago Picolo told the Financial Times that U.S.-based tech companies remain the biggest buyers of carbon credits linked to nature restoration projects.
In 2024, Alphabet, Meta Platforms, Microsoft and Salesforce shared plans to buy 20 million tons of these by the decade&#8217;s end.
Bank of America Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>) invested $205 million&nbsp;in exchange for tax credits from ethanol producer Harvestone Low Carbon Partners&#8217; <a href="https://www.benzinga.com/markets/equities/24/09/40729471/bank-of-america-makes-largest-ever-investments-in-carbon-capture-bets-205m-on-a-cleaner-planet-r" target="_blank" rel="noreferrer noopener">carbon capture project</a> at a North Dakota ethanol plant.
Amazon founder Jeff Bezos has been a <a href="https://www.benzinga.com/markets/equities/24/09/40670507/jeff-bezoss-earth-fund-under-scrutiny-for-potential-influence-on-carbon-credit-market-amid-amazo" target="_blank" rel="noreferrer noopener">significant climate change advocate</a>. In February 2020, he&nbsp;committed $10 billion&nbsp;to the Bezos Earth Fund to support scientists, activists and NGOs in combating climate change.
Additionally,&nbsp;Microsoft co-founder Bill Gates, another major player in climate change initiatives, voiced his desire for Elon Musk&nbsp;to be more vocal about climate change. Gates, along with Bezos and&nbsp;Alibaba Group Holding co-founder Jack Ma have been climate-focused investment advocates through&nbsp;Breakthrough Energy Ventures, which&nbsp;raised $839 million&nbsp;for its third flagship fund.
MSFT Price Action: Microsoft stock is up 3.83% at $444.92 at publication Wednesday.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/media/25/01/43004444/intel-plans-to-spin-off-5-billion-venture-capital-segment-will-remain-anchor-investor" target="_blank" rel="noreferrer noopener">Intel Plans To Spin Off $5 Billion Venture Capital Segment, Will Remain Anchor Investor</a></li>
</ul>
Photo: Shutterstock

Global

Microsoft Invests In Carbon Credits To Restore Amazon Rainforest, Faces Challenges From Data Center Growth, Trump's Fossil Fuel Focus

This whale alert can help traders discover the next big trading opportunities.
Whales are entities with large sums of money and we track their transactions here at Benzinga on our options activity scanner.
Traders often look for circumstances when the market estimation of an option diverges away from its normal worth. Abnormal amounts of trading activity could push option prices to hyperbolic or underperforming levels. 
Here's the list of options activity happening in today's session: 
<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th>Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>NVDA</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>01/24/25</td>
<td>$145.00</td>
<td>$58.2K</td>
<td>57.4K</td>
<td>96.8K</td>
</tr>
<tr>
<td>AAPL</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>01/24/25</td>
<td>$222.50</td>
<td>$41.6K</td>
<td>13.9K</td>
<td>35.3K</td>
</tr>
<tr>
<td>PLTR</td>
<td>CALL</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>01/24/25</td>
<td>$74.00</td>
<td>$51.3K</td>
<td>18.2K</td>
<td>23.2K</td>
</tr>
<tr>
<td>ARM</td>
<td>PUT</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>01/24/25</td>
<td>$170.00</td>
<td>$41.0K</td>
<td>3</td>
<td>7.0K</td>
</tr>
<tr>
<td>MSFT</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>03/21/25</td>
<td>$450.00</td>
<td>$96.4K</td>
<td>18.8K</td>
<td>6.6K</td>
</tr>
<tr>
<td>SMCI</td>
<td>PUT</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>03/21/25</td>
<td>$61.00</td>
<td>$28.3K</td>
<td>3.3K</td>
<td>5.4K</td>
</tr>
<tr>
<td>TSM</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>02/07/25</td>
<td>$230.00</td>
<td>$46.8K</td>
<td>2.7K</td>
<td>2.8K</td>
</tr>
<tr>
<td>INTC</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>02/21/25</td>
<td>$22.50</td>
<td>$88.4K</td>
<td>1.8K</td>
<td>2.7K</td>
</tr>
<tr>
<td>AVGO</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>01/24/25</td>
<td>$240.00</td>
<td>$36.7K</td>
<td>5.7K</td>
<td>2.4K</td>
</tr>
<tr>
<td>CORZ</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>01/31/25</td>
<td>$17.00</td>
<td>$30.0K</td>
<td>2.2K</td>
<td>1.0K</td>
</tr>
</tbody>
</table>

<h2>Explanation</h2>
These itemized elaborations have been created using the accompanying table. 
• Regarding NVDA (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), we observe a call option sweep with bullish sentiment. It expires in 2 day(s) on January 24, 2025. Parties traded 208 contract(s) at a $145.00 strike. This particular call needed to be split into 7 different trades to become filled. The total cost received by the writing party (or parties) was $58.2K, with a price of $280.0 per contract. There were 57438 open contracts at this strike prior to today, and today 96831 contract(s) were bought and sold. 
• Regarding AAPL (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), we observe a call option sweep with bearish sentiment. It expires in 2 day(s) on January 24, 2025. Parties traded 200 contract(s) at a $222.50 strike. This particular call needed to be split into 10 different trades to become filled. The total cost received by the writing party (or parties) was $41.6K, with a price of $208.0 per contract. There were 13931 open contracts at this strike prior to today, and today 35383 contract(s) were bought and sold. 
• Regarding PLTR (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>), we observe a call option trade with bearish sentiment. It expires in 2 day(s) on January 24, 2025. Parties traded 147 contract(s) at a $74.00 strike. The total cost received by the writing party (or parties) was $51.3K, with a price of $349.0 per contract. There were 18203 open contracts at this strike prior to today, and today 23277 contract(s) were bought and sold. 
• Regarding ARM (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>), we observe a put option trade with bullish sentiment. It expires in 2 day(s) on January 24, 2025. Parties traded 250 contract(s) at a $170.00 strike. The total cost received by the writing party (or parties) was $41.0K, with a price of $164.0 per contract. There were 3 open contracts at this strike prior to today, and today 7009 contract(s) were bought and sold. 
• For MSFT (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), we notice a call option sweep that happens to be bullish, expiring in 58 day(s) on March 21, 2025. This event was a transfer of 67 contract(s) at a $450.00 strike. This particular call needed to be split into 5 different trades to become filled. The total cost received by the writing party (or parties) was $96.4K, with a price of $1440.0 per contract. There were 18805 open contracts at this strike prior to today, and today 6654 contract(s) were bought and sold. 
• For SMCI (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>), we notice a put option trade that happens to be bearish, expiring in 58 day(s) on March 21, 2025. This event was a transfer of 10 contract(s) at a $61.00 strike. The total cost received by the writing party (or parties) was $28.3K, with a price of $2835.0 per contract. There were 3344 open contracts at this strike prior to today, and today 5407 contract(s) were bought and sold. 
• For TSM (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>), we notice a call option sweep that happens to be bullish, expiring in 16 day(s) on February 7, 2025. This event was a transfer of 106 contract(s) at a $230.00 strike. This particular call needed to be split into 24 different trades to become filled. The total cost received by the writing party (or parties) was $46.8K, with a price of $445.0 per contract. There were 2767 open contracts at this strike prior to today, and today 2891 contract(s) were bought and sold. 
• For INTC (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>), we notice a put option sweep that happens to be bearish, expiring in 30 day(s) on February 21, 2025. This event was a transfer of 486 contract(s) at a $22.50 strike. This particular put needed to be split into 14 different trades to become filled. The total cost received by the writing party (or parties) was $88.4K, with a price of $182.0 per contract. There were 1885 open contracts at this strike prior to today, and today 2755 contract(s) were bought and sold. 
• For AVGO (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>), we notice a call option sweep that happens to be bearish, expiring in 2 day(s) on January 24, 2025. This event was a transfer of 50 contract(s) at a $240.00 strike. This particular call needed to be split into 10 different trades to become filled. The total cost received by the writing party (or parties) was $36.7K, with a price of $735.0 per contract. There were 5757 open contracts at this strike prior to today, and today 2482 contract(s) were bought and sold. 
• For CORZ (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CORZ#NASDAQ">CORZ</a>), we notice a call option sweep that happens to be bullish, expiring in 9 day(s) on January 31, 2025. This event was a transfer of 1000 contract(s) at a $17.00 strike. This particular call needed to be split into 24 different trades to become filled. The total cost received by the writing party (or parties) was $30.0K, with a price of $30.0 per contract. There were 2216 open contracts at this strike prior to today, and today 1042 contract(s) were bought and sold. 
Options Alert Terminology 
 - Call Contracts: The right to buy shares as indicated in the contract. 
 - Put Contracts: The right to sell shares as indicated in the contract. 
 - Expiration Date: When the contract expires. One must act on the contract by this date if one wants to use it. 
 - Premium/Option Price: The price of the contract. 
For more information, visit our <a href="https://pro.benzinga.com/blog/how-to-understand-option-alerts/">Guide to Understanding Options Alerts</a> or read <a href="https://www.benzinga.com/markets/options">more about unusual options activity</a>. 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Options

Core Scientific, Inc. - Class A Common Stock

CORZ

INTC

SMCI

10 Information Technology Stocks With Whale Alerts In Today's Session

<a href="https://www.bloomberg.com/news/articles/2025-01-22/jpmorgan-lends-2-3-billion-for-blue-owl-tied-oracle-data-center?srnd=homepage-americas">https://www.bloomberg.com/news/articles/2025-01-22/jpmorgan-lends-2-3-billion-for-blue-owl-tied-oracle-data-center?srnd=homepage-americas</a>
&nbsp;
JPMorgan Chase &amp; Co. is lending $2.3 billion for a data center development in Abilene, Texas, that's owned by Blue Owl Capital Inc. and its partners.

'JPMorgan Lends $2.3B for Blue Owl-Tied Oracle Data Center' - Bloomberg News

INDA

OpenAI Tells Indian Court Any Order To Remove ChatGPT Training Data Inconsistent With Certain U.S. Obligations; Indian Courts Have No Jurisdiction To Hear Any Copyright Case Against OpenAI, Company Says

<figure class="wp-block-image size-large"><img decoding="async" src="https://thearorareport.com/wp-content/uploads/2025/01/2025-01-22_07h51_16.png" alt="" /></figure>
To gain an edge, this is what you need to know today.
<h4 class="wp-block-heading">Fueling AI Frenzy</h4>
An enlarged chart of artificial intelligence ETF Global X Artificial Intelligence &amp; Technology ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIQ#NASDAQ">AIQ</a>).
Note the following:
<ul>
<li>The chart shows there is a breakout in artificial intelligence ETF in the early trade this morning.&nbsp; As a caution, all breakouts do not sustain. Prudent investors should carefully watch if the breakout sustains or if it fails.</li>
<li>RSI on the chart shows AIQ is barely overbought.&nbsp; RSI shows the ETF has room to run higher.</li>
<li>Volume on the chart has been staying high, indicating sustained interest.</li>
<li>The Trump administration has announced an artificial intelligence project called Stargate.&nbsp; Stargate is a $500B venture to build AI data centers.&nbsp; The initial equity funders of the joint venture are OpenAI, SoftBank Group Corp &#8211; ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>), Oracle Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>), and Abu Dhabi's MGX.&nbsp; NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), and Arm Holdings PLC &#8211; ADR (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) are technology partners.</li>
<li>The announcement of Stargate is adding fuel to the AI frenzy.</li>
<li>In The Arora Report analysis, the headline of $500B for Stargate may turn out to be a mirage.&nbsp; The initial number is $100B and includes previously announced projects.&nbsp; The new funding may be significantly less than $100B.&nbsp; For the time being, the analysis does not matter because the momo crowd is buying extremely aggressively on the headline.</li>
<li>Trump commented that 10% tariffs on China are under consideration.&nbsp; This is better news for Chinese stocks than the previously mentioned 60% tariffs.&nbsp; However, Chinese stocks sank on Trump's comment, and the yuan declined.</li>
<li>The U.S. stock market ran up yesterday, in part, on the assumption that China may escape tariffs.&nbsp; This morning in the early, the market is ignoring Trump's China comments and continues to run up.</li>
<li>Extreme positive sentiment is evidence as the market runs up on positive rumors, but when the rumors turn out to be false and the facts are negative, the market ignores it.&nbsp; In The Arora Report analysis, history is clear.&nbsp; Long term investments should be initiated when sentiment is extremely negative and profits should be taken when sentiment is extremely positive.&nbsp; The best way to take advantage of extremely positive sentiment is through tactical positions.&nbsp;&nbsp;</li>
<li>The market is also being helped by strong earnings from: Netflix Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>), United Airlines Holdings Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UAL#NASDAQ">UAL</a>), Interactive Brokers Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IBKR#NASDAQ">IBKR</a>), Procter &amp; Gamble Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PG#NYSE">PG</a>).</li>
<li>Leading Indicators will be released at 10am ET and may be market moving.</li>
</ul>
<h4 class="wp-block-heading">Magnificent Seven Money Flows</h4>
In the early trade, money flows are positive in Amazon.com, Inc., Meta Platforms Inc, NVDA, and MSFT.
In the early trade, money flows are neutral in Alphabet Inc Class C.
In the early trade, money flows are negative in Apple Inc and Tesla Inc.
In the early trade, money flows are positive in SPDR S&amp;P 500 ETF Trust and Invesco QQQ Trust Series 1.
<h4 class="wp-block-heading">Momo Crowd And Smart Money In Stocks</h4>
Investors can gain an edge by knowing money flows in SPY and QQQ.  Investors can get a bigger edge by knowing when smart money is buying stocks, gold, and oil.  The most popular ETF for gold is SPDR Gold Trust.  The most popular ETF for silver is iShares Silver Trust.  The most popular ETF for oil is United States Oil ETF.
<h4 class="wp-block-heading">Bitcoin</h4>
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) is seeing selling on continued disappointment that Trump has not announced a bitcoin reserve.
<h4 class="wp-block-heading">Protection Band And What To Do Now</h4>
It is important for investors to look ahead and not in the rearview mirror.&nbsp; The proprietary protection band from The Arora Report is very popular.&nbsp; The protection band puts all of the data, all of the indicators, all of the news, all of the crosscurrents, all of the models, and all of the analysis in an analytical framework that is easily actionable by investors.
Consider continuing to hold good, very long term, existing positions. Based on individual risk preference, consider a protection band consisting of cash or Treasury bills or short-term tactical trades as well as short to medium term hedges and short term hedges. This is a good way to protect yourself and participate in the upside at the same time.
You can determine your protection bands by adding cash to hedges.&nbsp; The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive.&nbsp; If you do not hedge, the total cash level should be more than stated above but significantly less than cash plus hedges.
A protection band of 0% would be very bullish and would indicate full investment with 0% in cash.&nbsp; A protection band of 100% would be very bearish and would indicate a need for aggressive protection with cash and hedges or aggressive short selling.
It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.&nbsp; When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks.&nbsp; High beta stocks are the ones that move more than the market.
<h4 class="wp-block-heading">Traditional 60/40 Portfolio</h4>
Probability based risk reward adjusted for inflation does not favor long duration strategic bond allocation at this time.
Those who want to stick to traditional 60% allocation to stocks and 40% to bonds may consider focusing on only high quality bonds and bonds of five year duration or less.&nbsp; Those willing to bring sophistication to their investing may consider using bond ETFs as tactical positions and not strategic positions at this time.
The Arora Report is known for its accurate calls. The Arora Report correctly called the big artificial intelligence rally before anyone else, the new bull market of 2023, the bear market of 2022, new stock market highs right after the virus low in 2020, the virus drop in 2020, the DJIA rally to 30,000 when it was trading at 16,000, the start of a mega bull market in 2009, and the financial crash of 2008. Please click here to sign up for a free forever <a href="https://thearorareport.com/generate-wealth-newsletter-benzinga">Generate Wealth Newsletter</a>.

$BTC

IBKR

Stargate Adds Fuel To AI Frenzy, Chinese Stocks Sink On Trump Tariff Talk

<a href="https://www.theinformation.com/briefings/openai-preps-operator-release-for-this-week" title="https://www.theinformation.com/briefings/openai-preps-operator-release-for-this-week">https://www.theinformation.com/briefings/openai-preps-operator-release-for-this-week</a>

'OpenAI Is Preparing To Release A New ChatGPT Feature This Week That Will Automate Complex Tasks Typically Done Through The Web Browser, Such As Making Restaurant Reservations Or Planning Trips, According To A Person With Direct Knowledge Of The Plans' - The Information

In today's rapidly changing and fiercely competitive business landscape, it is essential for investors and industry enthusiasts to thoroughly analyze companies. In this article, we will conduct a comprehensive industry comparison, evaluating Microsoft (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) against its key competitors in the Software industry. By examining key financial metrics, market position, and growth prospects, we aim to provide valuable insights for investors and shed light on company's performance within the industry.
<h3>Microsoft Background</h3>
Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite. The company is organized into three equally sized broad segments: productivity and business processes (legacy Microsoft Office, cloud-based Office 365, Exchange, SharePoint, Skype, LinkedIn, Dynamics), intelligence cloud (infrastructure- and platform-as-a-service offerings Azure, Windows Server OS, SQL Server), and more personal computing (Windows Client, Xbox, Bing search, display advertising, and Surface laptops, tablets, and desktops).
<table>
<thead>
<tr>
<th>Company</th>
<th>P/E</th>
<th>P/B</th>
<th>P/S</th>
<th>ROE</th>
<th>EBITDA (in billions)</th>
<th>Gross Profit (in billions)</th>
<th>Revenue Growth</th>
</tr>
</thead>
<tbody>
<tr>
<td>Microsoft Corp</td>
<td>35.38</td>
<td>11.07</td>
<td>12.59</td>
<td>8.87%</td>
<td>$38.23</td>
<td>$45.49</td>
<td>16.04%</td>
</tr>
<tr>
<td>Oracle Corp</td>
<td>42.19</td>
<td>35.11</td>
<td>8.93</td>
<td>25.66%</td>
<td>$5.75</td>
<td>$9.97</td>
<td>8.64%</td>
</tr>
<tr>
<td>ServiceNow Inc</td>
<td>170.85</td>
<td>24.36</td>
<td>21.77</td>
<td>4.81%</td>
<td>$0.67</td>
<td>$2.21</td>
<td>22.25%</td>
</tr>
<tr>
<td>Palo Alto Networks Inc</td>
<td>47.60</td>
<td>20.37</td>
<td>15.73</td>
<td>6.33%</td>
<td>$0.45</td>
<td>$1.58</td>
<td>13.88%</td>
</tr>
<tr>
<td>CrowdStrike Holdings Inc</td>
<td>718.45</td>
<td>29.51</td>
<td>24.49</td>
<td>-0.57%</td>
<td>$0.05</td>
<td>$0.76</td>
<td>28.52%</td>
</tr>
<tr>
<td>Fortinet Inc</td>
<td>48.84</td>
<td>82.04</td>
<td>13.13</td>
<td>90.26%</td>
<td>$0.66</td>
<td>$1.24</td>
<td>13.0%</td>
</tr>
<tr>
<td>Gen Digital Inc</td>
<td>27.60</td>
<td>8.03</td>
<td>4.47</td>
<td>7.92%</td>
<td>$0.51</td>
<td>$0.78</td>
<td>3.07%</td>
</tr>
<tr>
<td>Monday.Com Ltd</td>
<td>575.49</td>
<td>12.71</td>
<td>14.03</td>
<td>-1.28%</td>
<td>$-0.02</td>
<td>$0.23</td>
<td>32.67%</td>
</tr>
<tr>
<td>Dolby Laboratories Inc</td>
<td>30.29</td>
<td>3.14</td>
<td>6.23</td>
<td>2.39%</td>
<td>$0.07</td>
<td>$0.27</td>
<td>4.9%</td>
</tr>
<tr>
<td>CommVault Systems Inc</td>
<td>41.63</td>
<td>25.82</td>
<td>8.24</td>
<td>5.56%</td>
<td>$0.02</td>
<td>$0.19</td>
<td>16.06%</td>
</tr>
<tr>
<td>QXO Inc</td>
<td>24</td>
<td>1.23</td>
<td>21.87</td>
<td>-0.21%</td>
<td>$-0.03</td>
<td>$0.01</td>
<td>-2.0%</td>
</tr>
<tr>
<td>Qualys Inc</td>
<td>30.85</td>
<td>11.37</td>
<td>8.85</td>
<td>10.53%</td>
<td>$0.05</td>
<td>$0.13</td>
<td>8.36%</td>
</tr>
<tr>
<td>Teradata Corp</td>
<td>37.20</td>
<td>24.21</td>
<td>1.74</td>
<td>32.0%</td>
<td>$0.08</td>
<td>$0.27</td>
<td>0.46%</td>
</tr>
<tr>
<td>Progress Software Corp</td>
<td>34.15</td>
<td>6.47</td>
<td>3.94</td>
<td>6.88%</td>
<td>$0.06</td>
<td>$0.15</td>
<td>2.11%</td>
</tr>
<tr>
<td>SolarWinds Corp</td>
<td>65.23</td>
<td>1.79</td>
<td>3.13</td>
<td>0.94%</td>
<td>$0.07</td>
<td>$0.18</td>
<td>5.5%</td>
</tr>
<tr>
<td>Average</td>
<td>135.31</td>
<td>20.44</td>
<td>11.18</td>
<td>13.66%</td>
<td>$0.6</td>
<td>$1.28</td>
<td>11.24%</td>
</tr>
</tbody>
</table>
<style>
 table {
 width: 100%;
 border-collapse: collapse;
 font-family: Arial, sans-serif;
 font-size: 14px;
 }

 th, td {
 padding: 8px;
 text-align: left;
 }

 th {
 background-color: #293a5a;
 color: #fff;
 text-align: left;
 }

 tr:nth-child(even) {
 background-color: #f2f4f8;
 }

 tr:hover {
 background-color: #e1e4ea;
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 td:nth-child(3), td:nth-child(5) {
 text-align: left;
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 font-weight: bold;
 color: #0d6efd;
 }

 .dividend-frequency {
 font-size: 12px;
 color: #6c757d;
 }
 </style>Through a detailed examination of Microsoft, we can deduce the following trends: 
<ul>
<li>
With a Price to Earnings ratio of 35.38, which is 0.26x less than the industry average, the stock shows potential for growth at a reasonable price, making it an interesting consideration for market participants.
</li>
<li>
With a Price to Book ratio of 11.07, significantly falling below the industry average by 0.54x, it suggests undervaluation and the possibility of untapped growth prospects.
</li>
<li>
The stock's relatively high Price to Sales ratio of 12.59, surpassing the industry average by 1.13x, may indicate an aspect of overvaluation in terms of sales performance.
</li>
<li>
With a Return on Equity (ROE) of 8.87% that is 4.79% below the industry average, it appears that the company exhibits potential inefficiency in utilizing equity to generate profits.
</li>
<li>
The company exhibits higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $38.23 Billion, which is 63.72x above the industry average, implying stronger profitability and robust cash flow generation.
</li>
<li>
The company has higher gross profit of $45.49 Billion, which indicates 35.54x above the industry average, indicating stronger profitability and higher earnings from its core operations.
</li>
<li>
The company's revenue growth of 16.04% is notably higher compared to the industry average of 11.24%, showcasing exceptional sales performance and strong demand for its products or services.
</li>
</ul>
<h3>Debt To Equity Ratio</h3>
<img src="https://www.benzinga.com/files/images/story/2025/1737558053_0.png" alt="debt to equity" />
The debt-to-equity (D/E) ratio provides insights into the proportion of debt a company has in relation to its equity and asset value.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
By evaluating Microsoft against its top 4 peers in terms of the Debt-to-Equity ratio, the following observations arise:
<ul>
<li>
In terms of the debt-to-equity ratio, Microsoft has a lower level of debt compared to its top 4 peers, indicating a stronger financial position.
</li>
<li>
This implies that the company relies less on debt financing and has a more favorable balance between debt and equity with a lower debt-to-equity ratio of 0.21.
</li>
</ul>
<h3>Key Takeaways</h3>
For Microsoft in the Software industry, the PE and PB ratios suggest that the company is undervalued compared to its peers. However, the high PS ratio indicates that the market values Microsoft's sales more highly. In terms of ROE, EBITDA, gross profit, and revenue growth, Microsoft demonstrates strong performance relative to its industry competitors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Industry Comparison: Evaluating Microsoft Against Competitors In Software Industry

Shares of AI-related tech companies are trading higher Wednesday after U.S. President Donald Trump announced a $500 billion AI infrastructure investment <a href="https://www.benzinga.com/markets/equities/25/01/43121798/elon-musk-says-project-stargate-doesnt-actually-have-the-money-after-trump-announces-500-billion-ai-investment-led-by-softbank-oracle-and-openai">called Project Stargate</a>.
What To Know: Trump on Tuesday announced that OpenAI, SoftBank and Oracle Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>) are planning a joint venture that will result in more data centers being built, creating more than 100,000 jobs in the United States, per Reuters. 
Project Stargate and its backers have committed $100 billion for immediate investment, with up to $400 billion in additional investments expected to take place over the next four years. 
OpenAI&#8217;s Sam Altman, SoftBank&#8217;s Masayoshi Son and Oracle&#8217;s Larry Ellison stood alongside Trump at the White House for the launch announcement on Tuesday. 
Ellison noted that twenty data centers are expected to be built under Stargate, the first of which is already under construction in Texas. 
Several AI-related names got a lift on the news. Oracle shares were up 10%, while shares of Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), which maintains an investment in OpenAI, were up about 1.7% at last check. 
Other big movers on Wednesday include NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Arm Holdings Plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) and Dell Technologies Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DELL#NYSE">DELL</a>). Nvidia shares were up about 3% at the time of writing, while Arm Holdings shares were up about 6.5% and Dell shares were up approximately 5%. 
Check This Out: <a href="https://www.benzinga.com/markets/equities/25/01/43121798/elon-musk-says-project-stargate-doesnt-actually-have-the-money-after-trump-announces-500-billion-ai-investment-led-by-softbank-oracle-and-openai">Elon Musk Says Project Stargate Doesn&#8217;t &#8216;Actually Have The Money&#8217; After Trump Announces $500 Billion AI Investment Led By SoftBank, Oracle And OpenAI</a>
Photo: courtesy of U.S. Department of Energy.

Tech Stocks Rise After Trump Announces AI Infrastructure Investment

Alphabet Inc&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Google earmarked over $1 billion investment <a target="_blank" href="https://www.benzinga.com/topic/anthropic" rel="noreferrer noopener">into OpenAI rival</a> Anthropic, intensifying its rivalry with Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) and Amazon.Com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>).
In 2023, Google <a target="_blank" href="https://www.benzinga.com/government/24/10/41528255/googles-2b-investment-in-anthropic-under-scrutiny-uk-opens-competition-inquiry" rel="noreferrer noopener">committed up to $2 billion</a> to the Microsoft-backed OpenAI rival, Financial Times <a target="_blank" href="https://www.ft.com/content/ed631513-dd37-44a3-a536-b2002f5727cc" rel="noreferrer noopener">reports</a>, citing unnamed sources familiar with the matter. The new tranche of money from Google into Anthropic adds to Amazon&#8217;s total investment of $8 billion.
Also Read: <a target="_blank" href="https://www.benzinga.com/analyst-ratings/price-target/25/01/43110913/apples-iphone-dependence-remains-but-services-wearables-offer-growth-potential-analyst" rel="noreferrer noopener">Apple&#8217;s iPhone Dependence Remains, But Services, Wearables Offer Growth Potential: Analyst</a>
Google invented the technology on which Anthropic&#8217;s Claude and OpenAI&#8217;s GPT4 models are built.
Anthropic was also on the verge of securing a further $2 billion from Silicon Valley venture capital investors in a deal likely to triple the start-up&#8217;s valuation to about $60 billion, Financial Times cites unnamed sources familiar with the deal.
Like Meta and Microsoft, OpenAI and Elon Musk&#8217;s xAI raised over $10 billion in 2024.
According to Financial Times, Anthropic&#8217;s revenue hit an annualized $1 billion in December, up roughly 10 times on a year earlier.
<a target="_blank" href="https://www.benzinga.com/media/24/12/42709007/sam-altmans-openai-plans-major-revamp-corporate-structure" rel="noreferrer noopener">Prior reports indicated</a> that OpenAI, worth $157 billion, will be restructuring its non-profit structure into a public benefit corporation in 2025 as developing large-scale language models requires substantial investments.
In related news, on Tuesday, OpenAI, SoftBank (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBF#OTC">SFTBF</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>), and Oracle Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>) introduced a <a target="_blank" href="https://www.benzinga.com/25/01/43111153/nvidia-and-ai-stock-rises-as-trump-announces-500-billion-stargate-ai-infrastructure-venture" rel="noreferrer noopener">$500 billion joint venture</a>, Stargate, to build AI infrastructure in the U.S. Stargate&#8217;s debut project will focus on creating a large-scale data center in Texas, with plans to expand to other states.&nbsp;
Also, in January, Microsoft launched its CoreAI division to streamline AI tools and <a target="_blank" href="https://www.benzinga.com/25/01/42980720/microsoft-taps-meta-veteran-to-lead-new-coreai-division-plans-shift-from-openai-dependence" rel="noreferrer noopener">build AI apps</a>. The company committed $80 billion for AI-driven data centers.
Price Action: GOOGL stock is up 0.38% at $200.39 premarket at the last check on Wednesday.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/price-target/25/01/43110753/aws-robotics-prime-video-ads-fuel-amazon-growth-potential-analysts" target="_blank" rel="noreferrer noopener">AWS, Robotics, Prime Video Ads Fuel Amazon Growth Potential: Analysts</a></li>
</ul>
Photo courtesy: Shutterstock

Anthropic Gains Big With Google Backing, Aims for $60 Billion Valuation and Surging AI Revenue

15 analysts have expressed a variety of opinions on Microsoft (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) over the past quarter, offering a diverse set of opinions from bullish to bearish.
The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">6</td>
<td align="right">9</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">1</td>
<td align="right">2</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">2</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">3</td>
<td align="right">5</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
Insights from analysts' 12-month price targets are revealed, presenting an average target of $515.13, a high estimate of $600.00, and a low estimate of $465.00. This current average has increased by 2.66% from the previous average price target of $501.79. 
<img src="https://www.benzinga.com/files/images/story/2025/1737554434_0.png" alt="price target chart" />
<h2>Breaking Down Analyst Ratings: A Detailed Examination</h2>
The analysis of recent analyst actions sheds light on the perception of Microsoft by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Keith Weiss</td>
<td>Morgan Stanley</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$540.00</td>
<td>$548.00</td>
</tr>
<tr>
<td>Thomas Blakey</td>
<td>Cantor Fitzgerald</td>
<td>Announces</td>
<td>Overweight</td>
<td>$509.00</td>
<td>-</td>
</tr>
<tr>
<td>Brent Bracelin</td>
<td>Piper Sandler</td>
<td>Raises</td>
<td>Overweight</td>
<td>$520.00</td>
<td>$470.00</td>
</tr>
<tr>
<td>Eric Beder</td>
<td>Loop Capital</td>
<td>Raises</td>
<td>Buy</td>
<td>$550.00</td>
<td>$500.00</td>
</tr>
<tr>
<td>Brad Reback</td>
<td>Stifel</td>
<td>Raises</td>
<td>Buy</td>
<td>$515.00</td>
<td>$475.00</td>
</tr>
<tr>
<td>Karl Keirstead</td>
<td>UBS</td>
<td>Raises</td>
<td>Buy</td>
<td>$525.00</td>
<td>$500.00</td>
</tr>
<tr>
<td>Gregg Moskowitz</td>
<td>Mizuho</td>
<td>Raises</td>
<td>Outperform</td>
<td>$510.00</td>
<td>$480.00</td>
</tr>
<tr>
<td>Rishi Jaluria</td>
<td>RBC Capital</td>
<td>Maintains</td>
<td>Outperform</td>
<td>$500.00</td>
<td>$500.00</td>
</tr>
<tr>
<td>Karl Keirstead</td>
<td>UBS</td>
<td>Lowers</td>
<td>Buy</td>
<td>$500.00</td>
<td>$510.00</td>
</tr>
<tr>
<td>Mark Murphy</td>
<td>JP Morgan</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$465.00</td>
<td>$470.00</td>
</tr>
<tr>
<td>Derrick Wood</td>
<td>TD Cowen</td>
<td>Lowers</td>
<td>Buy</td>
<td>$475.00</td>
<td>$495.00</td>
</tr>
<tr>
<td>Brent Bracelin</td>
<td>Piper Sandler</td>
<td>Maintains</td>
<td>Overweight</td>
<td>$470.00</td>
<td>$470.00</td>
</tr>
<tr>
<td>Keith Weiss</td>
<td>Morgan Stanley</td>
<td>Raises</td>
<td>Overweight</td>
<td>$548.00</td>
<td>$506.00</td>
</tr>
<tr>
<td>Joel Fishbein</td>
<td>Truist Securities</td>
<td>Maintains</td>
<td>Buy</td>
<td>$600.00</td>
<td>$600.00</td>
</tr>
<tr>
<td>Mark Moerdler</td>
<td>Bernstein</td>
<td>Lowers</td>
<td>Outperform</td>
<td>$500.00</td>
<td>$501.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Microsoft. This offers insight into analysts' perspectives on the current state of the company.</li>
<li>Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Microsoft compared to the broader market.</li>
<li>Price Targets: Delving into movements, analysts provide estimates for the future value of Microsoft's stock. This analysis reveals shifts in analysts' expectations over time.</li>
</ul>
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Microsoft's market standing. Stay informed and make well-considered decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/MSFT/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Microsoft analyst ratings.</a>
<h2>Unveiling the Story Behind Microsoft</h2>
Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite. The company is organized into three equally sized broad segments: productivity and business processes (legacy Microsoft Office, cloud-based Office 365, Exchange, SharePoint, Skype, LinkedIn, Dynamics), intelligence cloud (infrastructure- and platform-as-a-service offerings Azure, Windows Server OS, SQL Server), and more personal computing (Windows Client, Xbox, Bing search, display advertising, and Surface laptops, tablets, and desktops).
<h3>Key Indicators: Microsoft's Financial Health</h3>
Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.
Revenue Growth: Microsoft displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 16.04%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.
Net Margin: Microsoft's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 37.61%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Microsoft's ROE excels beyond industry benchmarks, reaching 8.87%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): Microsoft's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 4.77%, the company showcases efficient use of assets and strong financial health.
Debt Management: With a below-average debt-to-equity ratio of 0.21, Microsoft adopts a prudent financial strategy, indicating a balanced approach to debt management.
<h2>How Are Analyst Ratings Determined?</h2>
Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter. 
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.

Forecasting The Future: 15 Analyst Projections For Microsoft

Morgan Stanley analyst Keith Weiss maintains Microsoft (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) with a Overweight and lowers the price target from $548 to $540.

Price Target

Morgan Stanley Maintains Overweight on Microsoft, Lowers Price Target to $540

WIIM

Shares of AI tech companies are trading higher after President Trump announced a $500 billion AI infrastructure investment called Project Stargate.

U.S. stocks could open on a positive note on Wednesday, continuing to rally after <a href="https://www.benzinga.com/government/regulations/25/01/43085323/trump-sworn-in-as-47th-president-declares-golden-age-of-america-begins-right-now">Donald Trump's inauguration</a> as the 47th President of the U.S. on Monday. Futures point to a second consecutive day of positive start to the Trump presidency.
As the new administration settles in, President Trump announced an ambitious $500 billion artificial intelligence project dubbed Stargate. This venture includes Oracle Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>), Microsoft Corp.-backed (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) OpenAI, and SoftBank Group (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>).
<figure class="wp-block-table"> 
<table>
<tbody>
<tr>
<td>Futures</td>
<td>Change (+/-)</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>0.84%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>0.40%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>0.17%</td>
</tr>
<tr>
<td>R2K</td>
<td>0.17%</td>
</tr>
</tbody>
</table>
</figure>
In premarket trading on Wednesday, the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) gained 0.37% to $605.24 and the Invesco QQQ ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rose 0.77% to $528.86, according to <a href="https://benzinga.grsm.io/lxquj26b2sag">Benzinga Pro data</a>.
Cues From Last Session:
U.S. stocks ended Tuesday on a positive note, with Dow Jones and S&amp;P 500 ending the day with major gains, while the Nasdaq closed 0.64% in the green.
Crude oil prices edged lower as traders await clarity about the new Trump administration's agenda.
Vistra Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VST#NYSE">VST</a>) and Oracle Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>) were among the top gainers on Tuesday, surging 8.48% and 7.17% during the session respectively.
On the economic data front, U.S. industrial production rose by 0.9% in December, ahead of estimates of a 0.3% increase. Housing starts rose by 15.8% from the previous month to an annualized rate of 1.499 million units in December.
Most sectors on the S&amp;P 500 closed on a positive note, with industrials, real estate, and healthcare stocks recording gains on Tuesday.
However, energy stocks bucked the overall market trend, closing the session lower.
<figure class="wp-block-table"> 
<table>
<tbody>
<tr>
<td>Index</td>
<td>Performance (+/-)</td>
<td>Value</td>
</tr>
<tr>
<td>Nasdaq Composite</td>
<td>0.64%</td>
<td>19,756.78</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>0.88%</td>
<td>6,049.24</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>1.24%</td>
<td>44,025.81</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>1.85%</td>
<td>2,317.97</td>
</tr>
</tbody>
</table>
</figure>
Insights From Analysts:
Ryan Detrick, chief market strategist at Carson Global, underscored that there is a high possibility that 2025 could be a good year as far as equity markets are concerned.
"The year after an election year has been quite strong lately, with stocks higher 9 of the past 10 times going back to Reagan&#8217;s second term," he said.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">The year after an election year has been quite strong lately, with stocks higher 9 of the past 10 times going back to Reagan&#39;s second term. <a href="https://t.co/Nkx8DDehQ8">pic.twitter.com/Nkx8DDehQ8</a>
&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1881724906460868653?ref_src=twsrc%5Etfw">January 21, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
In 2017, the first year of Trump's previous term, the Dow and S&amp;P 500 delivered a return of 19.4%. Likewise, in Biden's first year in office, the return stood at 26.9%.
Jeremy Siegel, Wharton professor and senior economist at WisdomTree, underscored the resilient U.S. economy and positive indicators going into 2025.
"The outlook for Q4 GDP growth is strong, with estimates ranging between 2.5% and 3%, a testament to the underlying strength of the economy as we transition into 2025," he said.
He also has a word of caution about the impact of Trump's tariff plans, but noted that they are "likely months away."
"The S&amp;P 500 thus far remains resilient, but I maintain my call for a correction this year as bond yields rise further, which could pressure valuations. This presents opportunities for less richly priced stocks, sectors, and strategies."
See Also: <a href="https://www.benzinga.com/money/how-to-trade-futures" target="_blank" rel="noreferrer noopener">How To Trade Futures</a>
Upcoming Economic Data
Here's what investors will keep an eye on for Wednesday and the rest of the week:
<ul>
<li>On Wednesday, leading economic indicator data will be released at 10:00 a.m., ET.</li>
<li>On Thursday, initial jobless claims data will be released at 8:30 a.m. ET.</li>
<li>On Friday, S&amp;P flash services PMI and manufacturing PMI will be released at 9:45 a.m. ET.</li>
<li>Existing home sales and consumer sentiment data will be released at 10 a.m., ET.</li>
</ul>
Stocks In Focus:
<ul>
<li>Oracle Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>) stock gained over 8% in premarket trade on Wednesday after President Trump announced the Stargate AI joint venture, comprising Oracle, OpenAI, and SoftBank.</li>
<li>Netflix Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) surged over 14% after stunning the Street with 20 million new subscribers and a price hike amid its best quarterly performance ever.</li>
<li>Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Arm Holdings Plc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) and other chip stocks gained in pre-market after Trump's AI announcement.</li>
<li>Investors are awaiting earnings results from Abbott Laboratories (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABT#NYSE">ABT</a>), The Procter &amp; Gamble Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PG#NYSE">PG</a>), and Johnson &amp; Johnson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JNJ#NYSE">JNJ</a>) today.</li>
</ul>
Commodities, Bonds And Global Equity Markets:
Crude oil futures fell in the early New York session, declining by 0.42% to hover around $75.51 per barrel.
The 10-year Treasury note yield edged higher to 4.585%.
Most of the major Asian markets were mixed on Wednesday, while European markets were in the green in early trading.
Read Next:
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<li><a href="https://www.benzinga.com/25/01/43118541/bitcoin-ethereum-dogecoin-rally-amid-secs-plans-to-establish-crypto-regulations-top-trader-issues-bold-3000-target-for-btc-this-cycle">Bitcoin, Ethereum Rally Amid SEC&#8217;s Plans To Establish Crypto Regulations: Top Trader Issues $300,000 Target For BTC This Cycle</a></li>
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Photo courtesy: Shutterstock

Futures

Economics

Federal Reserve

Pre-Market Outlook

US Stocks Likely To Open Higher As Trump Announces $500 Billion AI Project: Oracle, Netflix, Nvidia Among Top Stocks To Watch

Tesla Inc. CEO Elon Musk cast doubt Wednesday on the ambitious $500 billion Project Stargate, hours after its announcement, claiming lead investor SoftBank Group (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBF#OTC">SFTBF</a>) has &#8220;well under $10B secured.&#8221;
What Happened: The project, unveiled Tuesday at a White House briefing in the presence of President Donald Trump, represents a joint venture between OpenAI, SoftBank, and Oracle Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>) to establish massive <a href="https://www.benzinga.com/25/01/43111153/nvidia-and-ai-stock-rises-as-trump-announces-500-billion-stargate-ai-infrastructure-venture">artificial intelligence infrastructure across the United States</a>. 
&#8220;They don't actually have the money,&#8221; Musk said.
&#8220;SoftBank has well under $10B secured. I have that on good authority.&#8221;
During the briefing, Oracle co-founder Larry Ellison highlighted the project&#8217;s healthcare applications, including an AI-driven system capable of delivering personalized cancer vaccines within 48 hours. 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">SoftBank has well under $10B secured. I have that on good authority.
&mdash; Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/1881944244480565497?ref_src=twsrc%5Etfw">January 22, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
See Also: <a href="https://www.benzinga.com/general/biotech/25/01/43119814/google-parent-owned-startup-to-launch-ai-designed-drug-trials-by-year-end-partnering-with-eli-lilly-and-novartis-to-tackle-major-diseases">Google Parent-Owned Startup To Launch AI-Designed Drug Trials By Year-End, Partnering With Eli Lilly And Novartis To Tackle Major Diseases</a>
Why It Matters: The initiative plans to deploy an initial $100 billion immediately, starting with a 500,000-square-foot data center in Abilene, Texas. Nine additional facilities are planned, with potential expansion to 20 locations.
Technology partners Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), and Arm Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) saw their stocks climb on the news. NVIDIA rose 3.95% to $143.15, while Arm jumped 8.94% to $162.60.
OpenAI, maintaining operational responsibility while SoftBank leads financial aspects, stated the project &#8220;will secure American leadership in AI&#8221; and &#8220;create hundreds of thousands of American jobs.&#8221; SoftBank&#8217;s Masayoshi Son will serve as chairman.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/markets/equities/25/01/43119464/netflix-raises-prices-16-peter-schiff-warns-of-escalating-inflation-risks-ahead-of-trump-policies">Netflix Raises Prices 16%, Peter Schiff Warns Of Escalating Inflation Risks Ahead Of Trump Policies</a></li>
</ul>
Image via Wikimedia Commons
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Elon Musk Says Project Stargate Doesn't 'Actually Have The Money' After Trump Announces $500 Billion AI Investment Led By SoftBank, Oracle And OpenAI

The software industry is undergoing rapid transformation, driven by advancements in cloud computing, SaaS models, and mobile-first development. As a result, high-performing, fundamentally solid software stocks CyberArk (CYBR), AvePoint (AVPT), and Okta (OKTA) are setting new benchmarks in this dynamic market. Read further... The global software sector is thriving, fueled by rapid digital transformation, the rise of cloud computing, and breakthroughs in AI and automation. As businesses increasingly turn to software solutions for efficiency and innovation, the sector's growth trajectory remains robust, bolstered by subscription-based models and cutting-edge technologies.
Within this dynamic landscape, some software companies are defying traditional valuation norms with high price-to-earnings (P/E) ratios. Leading software stocks CyberArk Software Ltd. (<a href="https://stocknews.com/stock/CYBR/">CYBR</a>), AvePoint, Inc. (<a href="https://stocknews.com/stock/AVPT/">AVPT</a>), and Okta, Inc. (<a href="https://stocknews.com/stock/OKTA/">OKTA</a>) are thriving by delivering cutting-edge solutions that address critical challenges in identity security, data management, and cloud computing.
The global software sector has experienced remarkable growth, driven by rapid digital transformation, the proliferation of cloud computing, and the adoption of AI and automation across industries. Emerging trends such as mobile-first software development and the transition to SaaS models are reshaping how software is consumed and delivered.
Further, the widespread adoption of smartphones and tablets has made mobile applications an integral part of everyday life, while SaaS platforms provide businesses with scalable and cost-efficient solutions. According to Precedence Research reports, the global software is projected to reach approximately $2.25 trillion by 2034, growing at a <a href="https://www.precedenceresearch.com/software-market">CAGR of 11.8%</a>.
Considering these conducive trends, let's examine the software stocks in detail:
CyberArk Software Ltd. (<a href="https://stocknews.com/stock/CYBR/">CYBR</a>)
CYBR specializes in identity security solutions, offering products such as Privileged Access Manager, Endpoint Privilege Manager, Secure Desktop, and workforce identity services. These solutions cater to industries like financial services, healthcare, retail, and government agencies, ensuring secure access and robust identity management.
In terms of forward non-GAAP <a href="https://www.investopedia.com/terms/p/price-earningsratio.asp">P/E</a>, CYBR is trading at 116.62x, 358.4% higher than the industry average of 25.44x.
On December 5, CYBR announced the launch of an underwritten secondary public offering. The offering includes 1,142,538 ordinary shares of CyberArk, with a par value of NIS 0.01 per share.
During the fiscal third quarter that ended September 30, 2024, CYBR's total revenue increased 25.6% year-over-year to $240.10 million. Its gross profit grew 29% from the year-ago value to $192.92 million. In addition, the company's non-GAAP net income reached $45.14 million, up 130.2% from the same quarter last year, and non-GAAP net income per share was $0.94, indicating an increase of 123.8% from the prior-year quarter.
Analysts expect CYBR's EPS and revenue for the fiscal year ending December 31, 2024, to increase 163.3% and 31.3% year-over-year to $2.95 and $987.52 million, respectively. It surpassed the street EPS and revenue estimates in each of the trailing four quarters, which is promising.
Over the past year, the stock has gained 58.1% to close the last trading session at $344.55. It has surged 26% over the past six months.
CYBR's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect its robust outlook. The stock has an overall rating of B, equating to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.
CYBR has an A grade in Growth and Sentiment and a B in Momentum and Quality. It is ranked #9 out of 20 stocks in the A-rated <a href="https://stocknews.com/category/software-security/">Software - Security</a> industry.
Beyond what we have stated above, we also have given CYBR grades for Value and Stability. Get all the CYBR's ratings <a href="https://stocknews.com/stock/CYBR/">here</a>.
Okta, Inc. (<a href="https://stocknews.com/stock/OKTA/">OKTA</a>)
OKTA provides identity and access management solutions to secure identities for organizations globally. Its product suite includes Single Sign-On, Adaptive Multi-Factor Authentication, API Access Management, and other tools that enable secure, streamlined access across cloud, mobile, and on-premises environments.
In terms of forward non-GAAP P/E, OKTA is trading at 30.50x, 19.9% higher than the industry average of 25.44x.
OKTA's total revenue increased 13.9% year-over-year to $665 million in the fiscal 2025 third quarter that ended on October 31, 2024. Its non-GAAP operating income came in at $138 million, up 62.4% year-over-year. Moreover, its non-GAAP net income and net income per share stood at $121 million and $0.67, respectively, representing increases of 53.2% and 52.3% over the prior-year quarter.
Analysts expect OKTA's revenue for the fiscal fourth quarter (ending January 31, 2025) to increase 10.6% year-over-year to $669.10 million. Its EPS for the same quarter is expected to grow 16.9% from the prior year to $0.74. In addition, it surpassed the consensus EPS and revenue estimates in each of the trailing four quarters.
The stock climbed 62.2% over the past six months and 107.8% over the past year to close the last trading session at $76.93.
OKTA's bright prospects are apparent in its POWR Ratings. The stock has an overall rating of B, equating to a Buy in our proprietary rating system.
It has an A grade for Growth and a B for Momentum. It is ranked #10 out of 20 stocks in the A-rated Software - Security industry.
Click <a href="https://stocknews.com/stock/OKTA/ratings">here</a> to see OKTA's ratings for Value, Stability, Sentiment, and Quality.
AvePoint, Inc. (AVPT)
AVPT offers cloud-native data management and SaaS solutions, addressing data challenges for organizations using platforms like Microsoft, Google, and AWS, alongside productivity tools, licensing, and support services globally.
In terms of forward non-GAAP P/E, AVPT is trading at 97.85x, 284.7% higher than the industry average of 25.44x.
On November 19, AVPT announced at Microsoft Corporation (<a href="https://stocknews.com/stock/MSFT/">MSFT</a>) Ignite the launch of industry-first Microsoft 365 Copilot benchmarking capabilities within its AVPT tyGraph solution. This innovation provides organizations with critical insights into AI adoption and usage patterns, enhancing their ability to assess and optimize the effectiveness and sustainability of Microsoft 365 Copilot.
AVPT's total revenue increased 22.1% year-over-year to $ 88.80 million in the fiscal third quarter that ended on September 30, 2024. Its non-GAAP operating income came in at $ 17.83 million, up 91.2% year-over-year. In addition, the company's non-GAAP net income reached $116.60 million, compared to a loss of $4.21 million in the prior year quarter, and non-GAAP net income per share was $0.01, compared to a loss of $0.02 in the prior year quarter.
Street expects AVPT's revenue for the fiscal year (ending December 31, 2024) to increase 21.2% year-over-year to $ 329.38 million. Its EPS for the same year is expected to grow 113.5% from the prior year to $0.17. In addition, it surpassed the consensus revenue estimates in each of the trailing four quarters.
The stock climbed 62.2% over the past six months and has returned 107.8% over the past year to close the last trading session at $16.62.
AVPT's bright prospects are apparent in its POWR Ratings. The stock has an overall rating of B, equating to a Buy in our proprietary rating system.
It has a B for Growth, Momentum, and Quality. The company operates within the <a href="https://stocknews.com/category/technology-services/">Technology – Services</a> industry, and is ranked #24 out of 79 stocks.
Click <a href="https://stocknews.com/stock/AVPT/">here</a> to see AVPT's ratings for Value, Stability, and Sentiment.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today's volatile markets:
<a href="https://report.stocknews.com/free-report/3stocks/?formplacement=artbotad_3s">3 Stocks to DOUBLE This Year &gt;</a>
&nbsp;

<hr />
CYBR shares were unchanged in premarket trading Thursday. Year-to-date, CYBR has gained 3.42%, versus a 0.58% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Kritika Sarmah</h2> <img src='https:/wp-content/uploads/2022/08/Kritika-Sarmah_Image-3.jpg' style="float:left; padding:5px;width:125px;">Her interest in risky instruments and passion for writing made Kritika an analyst and financial journalist. She earned her bachelor's degree in commerce and is currently pursuing the CFA program. With her fundamental approach, she aims to help investors identify untapped investment opportunities.<a href="https://stocknews.com/authors/?author=kritika-sarmah">More...</a>The post <a href=https://stocknews.com/news/cybr-avpt-okta-msft-3-high-pe-software-stocks-defying-valuation-norms/>3 High-PE Software Stocks Defying Valuation Norms</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 High-PE Software Stocks Defying Valuation Norms

Tech stocks soared in 2024, fueled by AI and cutting-edge innovations, but what's next? As global IT spending surges and data-driven technologies reshape industries, its long-term prospects remain bright. Hence, fundamentally strong tech stocks Microsoft Corp. (MSFT), Alphabet Inc. (GOOGL), and Cisco Systems (CSCO) could be ideal buy-and-hold options for investors. Read more… Technology has undoubtedly been the star of Wall Street in 2024, driven by explosive growth in areas like artificial intelligence (AI). As we turn the page to 2025, the sector's momentum shows no signs of slowing down.
In this article, I have highlighted three quality tech stocks: Microsoft Corporation (<a href="https://stocknews.com/stock/MSFT/">MSFT</a>), Alphabet Inc. (<a href="https://stocknews.com/stock/GOOGL/">GOOGL</a>), and Cisco Systems, Inc. (<a href="https://stocknews.com/stock/CSCO/">CSCO</a>) that one might consider buying in 2025 and hold forever. These companies are already well-known for delivering substantial investment returns and remain poised to capitalize on industry growth trends.
While the Federal Reserve's smaller-than-expected December rate cut and hawkish outlook for 2025 dampened some hopes for a year-end rally, the technology sector remains a long-term winner. The rising demand for data-driven technologies is fueling investments in AI, cloud computing, and connectivity.
By 2030, the U.S. IT services market is anticipated to hit $695.6 billion, growing at a <a href="https://www.grandviewresearch.com/industry-analysis/us-it-services-market-report">CAGR of 7.9%</a>. Additionally, global IT spending is projected to grow by <a href="https://canalys.com/insights/it-spending-forecasts-2025">8.3% this year</a>, reaching $5.44 trillion, driven by increasing adoption of cloud solutions, cybersecurity measures, automation, and advanced data management tools.
With that in mind, let's examine the fundamentals of the above-mentioned stocks in detail:
Microsoft Corporation (<a href="https://stocknews.com/stock/MSFT/">MSFT</a>)
MSFT is a technology company that develops and supports software, services, devices, and solutions worldwide. The company operates through three segments: Productivity and Business Processes; Intelligent Cloud; and More Personal Computing.
On November 19, MSFT announced an expanded partnership with C3.ai, Inc. (<a href="https://stocknews.com/stock/AI/">AI</a>) to accelerate the adoption of Enterprise AI on Microsoft Azure. This collaboration enhances their relationship by integrating C3 AI's advanced application software, including C3 Generative AI, with Azure's powerful cloud ecosystem.
Under this, MSFT became the preferred cloud provider for C3 AI solutions, while AI is now a top AI application provider on Azure. The alliance focuses on innovation, integration, and joint efforts in marketing, sales, and support to drive Enterprise AI adoption across industries, benefiting customers and stakeholders.
MSFT's trailing-12-month levered FCF margin of 24.11% is 112.5% higher than the industry average of 11.35%. Likewise, its trailing 12-month <a href="https://www.investopedia.com/terms/n/netincome.asp">net income</a> margin and ROCE of 35.61% and 35.60% are considerably above their respective industry averages of 3.84% and 4.44%.
For the first quarter of 2025, which ended on September 30, 2024, MSFT's total revenue increased 16% year-over-year to $65.59 billion. The company reported an operating income of $30.55 billion, indicating a 13.6% growth from the prior year quarter. In addition, its net income amounted to $24.67 billion and $3.30 per share, reflecting increases of 10.7% and 10.4% year-over-year, respectively.
The consensus revenue estimate of $68.86 billion for the fiscal second quarter (ended December 2024) represents an 11% increase year-over-year. The consensus EPS estimate of $3.13 for the same quarter indicates a 6.9% improvement year-over-year. The company has an excellent surprise history; it surpassed the consensus revenue and EPS estimates in each of the trailing four quarters.
The stock has gained 15.5% over the past year and 3.7% over the past three months to close the last trading session at $424.56.
MSFT's bright prospects are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of B, which equates to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
MSFT has a B grade for Momentum, Stability, and Quality. It is ranked #16 out of 40 stocks in the B-rated <a href="https://stocknews.com/category/software-business/">Software – Business</a> industry. <a href="https://stocknews.com/stock/MSFT/">Click here</a> to see the additional ratings for MSFT (Growth, Value, and Sentiment).
Alphabet Inc. (<a href="https://stocknews.com/stock/GOOGL/">GOOGL</a>)
GOOGL is the powerhouse behind a spectrum of tech innovations and various products and platforms worldwide. It operates through Google Services; Google Cloud; and Other Bets segments. The company is also the renowned owner of YouTube.
The stock's trailing-12-month EBITDA margin of 36.33% is 95.1% higher than the industry average of 18.62%. Similarly, its 12.09% trailing-12-month levered FCF margin is 36.6% above the industry average of 8.86%. Also, its trailing-12-month ROCE of 32.10% compares favorably to the industry average of 4.64%.
In the fiscal third quarter, which ended on September 30, 2024, GOOGL's revenues increased 15.1% year-over-year to $88.27 billion. Its income from operations rose 33.6% from the year-ago value to $28.52 billion. The company's net income amounted to $26.30 billion and $2.12 per share, indicating an increase of 33.6% and 36.8% from the prior-year quarter, respectively.
Street expects GOOGL's revenue for the fiscal fourth quarter (ended December 2024) to increase 12% year-over-year to $96.68 billion. Its EPS for the same period is expected to register a 29.3% growth from the prior year, settling at $2.12. In addition, it surpassed the consensus revenue and EPS estimates in each of the trailing four quarters, which is impressive.
Over the past year, the stock has surged 42.9%, closing the last trading session at $193.95.
It's no surprise that GOOGL has an overall rating of B, equating to a Buy in our POWR Ratings system. It also has a B grade for Sentiment and Quality. Out of 50 stocks in the A-rated <a href="https://stocknews.com/category/internet/">Internet</a> industry, GOOGL is ranked #15.
Beyond what is stated above, we've also rated GOOGL for Growth, Value, Momentum, and Stability. Get all GOOGL ratings <a href="https://stocknews.com/stock/GOOGL/">here</a>.
Cisco Systems, Inc. (<a href="https://stocknews.com/stock/CSCO/">CSCO</a>)
CSCO designs manufactures, and sells Internet Protocol-based networking and other products related to the communications and information technology industry internationally. It integrates product portfolios across networking, security, collaboration, applications, and cloud.
On November 18, 2024, CSCO announced it signed a Whole Portfolio Agreement (WPA) with MGM Resorts International, a global gaming and entertainment company, to empower MGM Resorts next-generation guest experiences. In this agreement, MGM Resorts will have access to CSCO's software portfolio and Customer Experience (CX) services for 5.5 years.
In the same month, demonstrating its commitment to returning value to shareholders, the company declared its 52nd consecutive quarterly dividend of $0.40 per common share, which will be paid on January 22, 2025.
CSCO pays an annual dividend of $1.60, which translates to a yield of 2.72% at the current share price. Its four-year average dividend yield is 3.02%. Moreover, its dividend payouts have increased at a CAGR of 2.7% over the past five years.
In terms of the trailing-12-month net income margin, CSCO's 17.73% is 361.8% higher than the 3.84% industry average. Similarly, its 24.68% trailing-12-month levered FCF margin is 117.5% higher than the industry average of 11.35%. Also, its trailing-12-month ROCE of 20.76% compares to the industry average of 4.44%.
During the first quarter of 2025, which ended on October 26, CSCO's total revenues were $13.84 billion, while its services' revenue amounted to $3.73 billion, representing an increase of 5.6% from the last year. Moreover, the company's net income for the quarter came in at $2.71 billion and $0.68 per share.
Analysts expect CSCO's revenue for the second quarter (ending January 2025) to increase 8.4% year-over-year to $13.87 billion, while its EPS for the same period is expected to grow 4.3% from the prior year to $0.91. Moreover, it topped Street revenue and EPS estimates in each of the trailing four quarters, which is excellent.
Shares of CSCO have gained 26.9% over the past six months and 18.2% over the past year to close the last trading session at $59.20.
CSCO's POWR Ratings reflect this robust outlook. The stock has an overall rating of B, which equates to Buy in our proprietary rating system.
CSCO has a B grade for Momentum, Stability, and Quality. It is ranked #16 out of 45 stocks in the B-rated <a href="https://stocknews.com/category/technology-communication-networking/">Technology – Communication/Networking</a> industry. <a href="https://stocknews.com/stock/CSCO/">Click here</a> to see the other ratings of CSCO for Growth, Value, and Sentiment.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today's volatile markets:
<a href="https://report.stocknews.com/free-report/3stocks/?formplacement=artbotad_3s">3 Stocks to DOUBLE This Year &gt;</a>

<hr />
MSFT shares . Year-to-date, MSFT has gained 0.73%, versus a 0.58% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Shweta Kumari</h2> <img src='https:/wp-content/uploads/2022/03/Shweta-Kumari_Image-2.jpg' style="float:left; padding:5px;width:125px;">Shweta's profound interest in financial research and quantitative analysis led her to pursue a career as an investment analyst. She uses her knowledge to help retail investors make educated investment decisions.<a href="https://stocknews.com/authors/?author=shweta-kumari">More...</a>The post <a href=https://stocknews.com/news/msft-googl-csco-ai-3-tech-stocks-to-buy-in-2025-and-hold-forever/>3 Tech Stocks to Buy in 2025 and Hold Forever</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Tech Stocks to Buy in 2025 and Hold Forever

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Rezolve Ai's Recent Deals With Microsoft, Google Could Jumpstart Its Revenues In $7.6 Billion Market

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Microsoft announces quarterly earnings release date

Pearson and Microsoft Announce Multi-Year Partnership to Transform the Future of Learning and Work with AI

Uranium Prices Hit Record High, Fueled By A.I. Data Centres

Newly Launched Permuto Capital Announces Filing of Registration Statement for New Type of Equity Product

Microsoft launches $5 million AI for Good Open Call grant program to drive positive change in Washington state

President Trump Unveils $500 Billion AI Infrastructure: Watch AI, PRSO, BBAI Among The Giants

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