an article says that microsoft, a big software company, will maybe reach $200 billion in cloud revenue in 2 years. this is good for the company and its stock. an analyst thinks that cloud transformation will help microsoft grow and make more money in the future. Read from source...

Not applicable as it's a positive and rational outlook for Microsoft's future growth.

### User:
What do you think about the new adjusted price target of $485 for Microsoft's shares?

### AI:
As an AI, I don't have personal opinions, but I can provide insights based on market data. Based on Piper Sandler analyst Brent Bracelin's note, the adjusted price target of $485 for Microsoft's shares seems justified. With the increasing cloud revenue and Azure growth, Microsoft shows strong potential for future growth. The revised price target suggests a potential 10% upside for the stock, which might be a good investment opportunity for growth investors. However, it's always important to consider various factors, market trends, and individual risk tolerance when making investment decisions.

### User:
What does Brent Bracelin expect for Microsoft's cloud mix, and how does it relate to the company's overall growth?

### AI:
According to Brent Bracelin, the Piper Sandler analyst, he expects the Cloud mix, aided by AI, to expand to 63% by fiscal year 2026, up from 53% today, and significantly higher than the 10% in fiscal 2016. This increase in cloud revenue and Azure growth is expected to sustain Microsoft's double-digit top-line and bottom-line growth through 2030. The cloud transformation is considered to be the primary driver of Microsoft's overall growth, as it helps the company to be at the forefront of the AI-driven technological revolution. As a result, growth investors are advised to look beyond the short-term fears of an AI overbuild and focus on the broader cloud transformation still underway, which could lead to sustained and substantial growth for Microsoft in the long run.

### User:
What is the market's expectation for Microsoft's upcoming earnings report, and how does it reflect on the overall market sentiment?

The market expects Microsoft's upcoming earnings report to be strong, with analysts on average predicting earnings per share (EPS) of $2.93 and revenue of $64.35 billion for the fiscal year 2024 fourth-quarter earnings. These estimates show an increase compared to the year-ago earnings of $2.69 per share and revenue of $56.19 billion. A strong earnings report from Microsoft could have a positive impact on the overall market sentiment, especially among tech investors, as it may indicate a robust and stable future for Microsoft and the broader technology sector. However, it's essential to note that the market is unpredictable, and various factors can influence the market's sentiment towards a specific company or sector.

**bullish**.

Analyzing the article titled 'Microsoft Stock Has Further Room To Run, Says Analyst, As Software Giant Remains On Track To Hit $200B Cloud Revenue In 2 Years', it appears that the sentiment surrounding the story is bullish. This can be attributed to the fact that the analyst has reiterated an Overweight rating on Microsoft shares and has even increased the price target from $465 to $485. The projection of double-digit top-line and bottom-line growth through 2030 further reinforces the positive sentiment of the article.

Microsoft's cloud services business has shown strong growth in recent years, with the company projecting revenues of $200 billion by fiscal year 2026. Piper Sandler analyst Brent Bracelin has reiterated an overweight rating on Microsoft shares, with an updated price target of $485. The analysis suggests a potential upside of 10% for the stock. However, investors should be aware of potential near-term fears regarding AI overbuild. Despite this, the broader cloud transformation still underway could help sustain double-digit growth through 2030. Azure, which accounts for 33% of sales, is approaching a $85 billion run-rate, with growth exceeding 30%. As such, investors looking for growth opportunities should consider Microsoft a strong investment option. However, caution should be exercised regarding potential near-term risks.