Microsoft Results Could Trigger Tech Rally

Will Microsoft trigger a broad tech rally on Friday?

"Yes I think it will," says top trader Jon Najarian. Bulls have every reason to be hopeful.

Microsoft earnings came in better than expected with money pros interpreting results as a sign that PC sales are holding up better than expected.

For example, the company’sWindows division reported a 4% pop in revenue while Microsoft’s Business division said revenue increased by 9%.

"Perhaps the demise of the PC is not as great as everyone is anticipating,” says Edward Jones analyst Josh Olson in a Reuters interview. “It looks like the PC is showing a little resiliency.”

“I agree that all this talk about the PC market dying is way overblown, adds BGC Colin Gillis on CNBC’sFast Money. "This is the 7th consecutive quarter in a row that Microsoft has put up north of $5 billion in net income.”

As more investors subscribe to this line of thinking, we could see a spate of buying. "I love computers, here," Najarian tells us.

If you’re a trader looking for a specific name to play, Gillis says even after the pop Microsoft remains a buy. “It’s a name for value players and those seeking dividends and people who want a little less volatility.”

“I’m already in. Valuations are cheap. I like the story still,” adds trader Karen Finerman.

Gillis has a $34 price target on the stock.

By the numbers, Microsoft reported quarterly profit of $5.11 billion, or 60 cents per share, compared with $5.23 billion, or 61 cents per share, in the year-ago quarter when it posted a one-time tax gain.

Profit beat analysts' average forecast of 57 cents per share, according to Thomson Reuters.

Sales rose 6 percent to $17.41 billion, driven by strong demand for its server software products and Office application. Analysts had expected sales of $17.18 billion.

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