Key Takeaways
- Barclays has significantly raised its price target for Microsoft (MSFT) to $550 from $494, signaling strong analyst confidence in the tech giant. Other firms like Deutsche Bank, BMO Capital, Goldman Sachs, and Piper Sandler have also recently increased their price targets for Microsoft, with some reaching as high as $600, driven by optimism around its AI investments and Azure cloud platform.
- Ryanair (RYA) CEO Michael O'Leary reports strong "close-in bookings" and "reasonably strong" pricing, with overall bookings approximately 1% higher than the same period last year, though he cautions that the situation remains fragile.
- Optimism is increasing in Washington that commercial aircraft will be exempt from potential US tariffs, a development that would benefit manufacturers like Boeing (BA) and Airbus (AIR), as well as airlines such as Ryanair (RYA). O'Leary believes any tariffs imposed would likely be temporary.
- AI research firm Anthropic plans to sign the European Union's Artificial Intelligence Guidelines, aligning with the EU's comprehensive AI Act which came into force in June 2024. This move aims to provide legal certainty and reflects efforts to comply with regional regulatory demands.
- Spot Palladium closed up 3% at $1277.47 per ounce, indicating a notable increase in the precious metal's value.
Barclays has boosted its price target for Microsoft (MSFT) to $550 from a previous $494, reflecting continued bullish sentiment on the tech behemoth. This upward revision aligns with other major financial institutions, including Deutsche Bank, BMO Capital, and Goldman Sachs, which have also recently raised their price targets for Microsoft, with some projections reaching as high as $600. Analysts are particularly optimistic about Microsoft's ongoing investments in artificial intelligence and the robust performance of its Azure cloud computing service.
In the aviation sector, Ryanair (RYA) CEO Michael O'Leary provided a mixed but generally positive outlook. He noted that "close-in bookings are strong" and "pricing is reasonably strong," indicating stable pricing power. Bookings are currently running approximately 1% higher than the same period last year. Despite this, O'Leary described the booking situation as fragile, suggesting continued caution in the volatile travel market.
A significant development for the airline industry is the increasing optimism in Washington regarding the exemption of commercial aircraft from potential US tariffs. O'Leary emphasized that such tariffs would be detrimental to complex supply chains and would negatively impact exports for manufacturers like Boeing (BA) and sales for Airbus (AIR). He expressed hope that commercial aircraft, historically exempt from previous tariffs, would continue to be so, and believes any tariffs imposed would likely be temporary. Ryanair itself has indicated it might delay Boeing deliveries if tariffs are imposed, to avoid increased costs.
In the realm of artificial intelligence governance, Anthropic is set to sign the European Union's Artificial Intelligence Guidelines. These voluntary guidelines are part of the broader EU AI Act, which came into force in June 2024, aiming to provide legal certainty and ensure compliance with EU copyright law for AI model developers. This move by Anthropic underscores the growing importance of adhering to regional regulatory frameworks in the rapidly evolving AI landscape.
Lastly, the commodities market saw Spot Palladium close up 3% at $1277.47 per ounce. This increase highlights a notable movement in the price of the precious metal. Meanwhile, a blank-check company is reportedly nearing a cryptocurrency deal, as indicated by the Wall Street Journal. European market updates also provided a general overview of market trading news.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.