Microsoft stock premarket steady at $394.6 as volume thins ahead of earnings report
The stock opened at $391.3 on Tuesday
Microsoft stock price edged higher on Tuesday, extending its April gains as investors positioned ahead of the tech giant’s highly anticipated quarterly earnings.
The stock opened at $391.3 on Tuesday, dipped briefly to a low of $390.5, and then rallied 1.2% to print a five-week high at $395.1 before closing the session at $394.0. This advance pushed Microsoft’s April gain to 5.2%, bringing it just 2% shy of last month’s peak at $402.2.
Tuesday’s rally was technically backed by the price trading well above both the 20-day and 50-day exponential moving averages, suggesting medium-term bullish control. However, the upside movement has occurred on declining volume, indicating limited follow-through ahead of the company’s earnings release later today.
Microsoft price dynamics (Feb 2025 - April 2025). Source: TradingView
As of the European session on Wednesday, premarket trading hovers near $394.6, showing little movement from Tuesday’s close. This subdued tone reflects investor hesitance to initiate fresh positions ahead of the results. Microsoft now faces a near-term resistance level at $396.5, which will likely be tested depending on how the earnings land.
MSFT stock to reclaim $400 level if earnings beat expectations on AI and cloud revenue
Fundamentally, the earnings call will be pivotal to the next direction of Microsoft's stock price movement. Analysts expect adjusted earnings of $3.22 per share on $68.4 billion in revenue, an increase from $2.94 and $61.9 billion respectively in the same quarter last year.
Investors are closely watching three key metrics: the pace of AI-related spending, the strength of its cloud division, and customer demand in enterprise software. Any upside surprise in these segments could trigger a breakout above $396.5, opening the door toward $400 and beyond. Conversely, disappointing figures especially regarding cloud growth could prompt a pullback toward the 20-day EMA, potentially reversing the recent uptrend.
Microsoft rebounded 1.6% from its 50-day moving average after a 1.4% dip, showing strong technical support. RSI and volume confirmed short-term bullish momentum near $392.70.
