Microsoft stock soars to 4-month high, erasing Q1 losses after strong earnings report
Microsoft stock now trades with a positive year-to-date return
Microsoft Corp stock surged sharply in premarket trading on Thursday, May 1, climbing 9.5% to a 4-month high near $430.
The sharp upside move follows a robust quarterly earnings report released after Wednesday’s market close and marks a decisive turnaround for the tech giant, which has now recovered all the losses sustained during the first quarter of 2025.
The earnings report revealed strong revenue and profit growth across all business segments, with Azure cloud services delivering results that beat Wall Street’s expectations. Moreover, forward guidance for the June quarter also came in ahead of analysts’ projections, further strengthening bullish sentiment.
Microsoft price dynamics (July 2024 - April 2025). Source: TradingView
Notably, this surge arrived after Microsoft ended April with a 5.5% monthly gain, its first positive monthly performance in 2025 following three consecutive declines. On Wednesday, the stock initially dipped to a four-day low at $384.50 before reversing course and rallying over 3% to close at $395.30, just under a key resistance near $396. That resistance had capped gains in previous weeks but was ultimately breached during today’s European session.
Microsoft's upside outlook supported by volume and EMA golden cross
The move higher was accompanied by a surge in trading volume—often a signal of conviction behind the price action and confirmed by a golden cross formation on the 4-hour chart, where the 20 EMA crossed above the 50 EMA. This technical signal aligns with broader bullish momentum and increases the probability of further upside.
Following today’s rally, Microsoft stock now trades with a positive year-to-date return. Near-term price action is expected to consolidate between the new support around $418 and resistance near $448, as traders digest the earnings-driven surge. With strong fundamentals now backed by technical strength, Microsoft enters May with renewed momentum and investor confidence.
Microsoft rose 1.2% to a five-week high as traders positioned ahead of the earnings report. Price climbed 1.2% Tuesday on light volume, extending April’s gain to 5.2%.
