Microsoft is set to release its fiscal Q3 2024 earnings after market close on Thursday. Analysts predict earnings per share of $2.83 and revenue of $60.769 billion, indicating year-over-year growth of 15.1% and 15.98%, respectively. Goldman Sachs analysts are optimistic about Microsoft’s ability to scale Gen-AI revenue, drive Azure growth, and continue its earnings outperformance. The company’s 12-month average price target is $478, suggesting a potential 18% stock upside.
Analysts at Goldman Sachs expect total cash spending by S&P 500 companies to grow by 9% to $3.7T this year, driven by cash M&A and buybacks. Despite higher interest rates, S&P 500 companies have increased their cash balances by 7% year-over-year. Analysts forecast S&P 500 EPS to grow by 8% in 2024 and 6% in the following year, providing companies with more cash to spend.
Goldman Sachs is continuing its exit from consumer finance by transferring its robo-investing accounts to Betterment. Last year, Goldman scaled back its consumer finance operations after significant losses. The Marcus Invest accounts and assets under management will be acquired by Betterment, but no additional accounts, technology, employees, or operations will be part of the transaction. Goldman Sachs will focus on growing its Marcus Deposits platform, which has over 3 million customers and $100 billion in consumer deposits.
