Software and cloud computing company Microsoft (MSFT, Financials) rose 15.5% Thursday after fiscal fourth-quarter results topped Wall Street estimates and Azure growth beat forecast.
The rise took the stock over its 200-day moving average of $433.83, a level that is widely viewed as a barometer of long-term momentum. Microsoft closed at $451.10, after hitting a high of $458.69 on the day.
Volume was more than 110 million shares, more than twice the prior session. The stock also finished significantly above its 50-day and 100-day moving averages, both around $398.
Microsoft announced earnings of $4.74 a share for the quarter ended June 30 on revenue of $90 billion, up 18% from a year earlier.
Revenue from its Intelligent Cloud business jumped to $39.31 billion, above the $38.17 billion average expectation. Azure revenue climbed 43% year over year or 39.6% in constant currency
The earnings beat and big jump in volume suggest investors are responding positively to the company's cloud performance. The next technical test, however, will be if the shares can hold up above the 200-day moving average after the immediate post-earnings pop.
Investors will now wait to see if Microsoft can maintain those gains and continue the pace of Azure's expansion in the quarters ahead.