KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
Microsoft is set to release its FY2025 Q4 earnings on July 30, and investors are watching closely to see if its Azure cloud business can sustain the momentum that drove a 7% stock jump last quarter. While analysts are optimistic, expectations are high, and the stock's recent rally has already priced in strong cloud growth.
What Analysts Expect
Revenue: USD 73.81 billion (+14.0% YoY)
EPS: USD 3.38 (+14.5% YoY)
Key Segments to Watch
1. Productivity & Business Processes
Includes Office 365, Dynamics 365, and Microsoft Teams.
Growth expected to remain in the low double-digits.
AI-powered Copilot could help lift average revenue per user (ARPU) for Office 365.
2. Intelligent Cloud (Azure)
Guided revenue: USD 28.75–29.05 billion (+20–22% in constant currency).
The focus is on Azure’s growth rate as AI demand drives cloud spending.
Google’s strong cloud results hint at continued robust demand, though the stock’s rally since May has raised the bar.
3. More Personal Computing
Includes Windows OEM, devices, gaming, Bing, and search ads.
Growth expected to be in the low single digits.
Weak PC demand may weigh, but Bing’s 15% revenue growth last quarter shows some positive traction.
CapEx and AI Build-Out
Q4 CapEx: Expected to hit a record USD 17.7 billion.
FY2026 CapEx: Estimated at USD 100 billion, with 60% of server spending allocated to GPUs as Microsoft ramps up AI infrastructure.
Options Market Signals
Put/Call Ratio: 0.66, suggesting balanced sentiment.
Implied volatility is low compared to other tech giants, but the stock has moved more than 6% after each of the past three earnings reports.
Risks and Opportunities
Upside Catalyst: Strong Azure growth and continued AI demand.
Risk Factor: Potential investor concern over excessive capital expenditure if spending surges beyond expectations.
Valuation Context
Microsoft’s P/E ratio of 39.5x is at the 99th percentile of its five-year range, reflecting high expectations going into earnings.
Key Takeaways
Microsoft’s Q4 earnings will be all about Azure and AI momentum.
The stock’s valuation and recent rally set a high bar for a beat.
CapEx guidance for FY2026 will signal how aggressively Microsoft is betting on AI infrastructure.
Investors should watch for any signs of a slowdown in Azure or overspending concerns.
Bottom line: If Azure growth approaches or exceeds 30% again, Microsoft could reaffirm its leadership in cloud and AI—but with expectations sky-high, the company has little room for error.
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