Microsoft, which belongs to the Zacks Computer – Software industry, posted revenues of $35.02 billion for the quarter ended March 2020, surpassing the Zacks Consensus Estimate by 3.44%. This compares to year-ago revenues of $30.57 billion. The company has topped consensus revenue estimates four times over the last four quarters. The nasdaq msft at https://www.webull.com/quote/nasdaq-msft announced the acquisition of robotic process automation (RPA) software provider Softomotive, during the Build 2020 conference. Softomotive’s WinAutomation will become a part of Microsoft’s automation platform Power Automate. WinAutomation platform enables customers to create their bot that aids them in automating manual business processes.
The growing use of business process automation backed by AI and software robots is likely to boost demand for RPA solutions, as it enables enterprises to boost productivity and performs repetitive tasks without human intervention. The Softo motive buyout is a part of Microsoft’s focus on developing robust RPA capabilities and expanding its footprint in the RPA space. The company launched UI Flows in April which added RPA capabilities to the Power Automate platform. This allowed enterprises to automate their legacy apps and manual processes through UI-based automation for both attended and unattended scenarios. The sustainability of the stock’s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management’s commentary on the earnings call.
What’s next for the stock?
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Microsoft was mixed. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report. The shares are expected to perform in line with the market shortly. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well.
Conclusion
Further, RPA startup UiPath acquired Process Gold and Step Shot in October 2019. The acquisitions were aimed at bolstering UiPath’s existing RPA strength with added capabilities. UiPath Explorer Expert will leverage Step shot to identify and improve well-defined business processes, while UiPath Explorer Enterprise will use Process Gold tech to identify variations in less well-defined processes and recommend optimal courses of action.
Nevertheless, Microsoft’s deep focus toward strengthening RPA offerings is likely to strengthen its market position in the space and enable it to offer advanced services to enterprises that boost business productivity. If you want to know more stock information like tqqq, you can visit at https://www.webull.com/quote/nasdaq-tqqq .
