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Jacobs Equity LLC acquired a new stake in Microsoft Corporation (NASDAQ:MSFT – Free Report) during the 2nd quarter, according to the company in its most recent filing with the SEC. The institutional investor acquired 1,805 shares of the software giant’s stock, valued at approximately $673,000. Microsoft accounts for 0.5% of Jacobs Equity LLC’s holdings, making the stock its 29th biggest holding.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the stock. Auto Owners Insurance Co increased its stake in shares of Microsoft by 56,160.8% in the fourth quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant’s stock worth $29,073,486,000 after acquiring an additional 60,009,531 shares during the last quarter. Bank of America Corp DE purchased a new stake in shares of Microsoft during the second quarter worth $27,338,370,000. Legal & General Group Plc acquired a new stake in Microsoft during the second quarter valued at $18,306,443,000. Amundi boosted its position in Microsoft by 30.8% during the first quarter. Amundi now owns 41,675,076 shares of the software giant’s stock valued at $15,426,862,000 after purchasing an additional 9,814,598 shares during the last quarter. Finally, Dimensional Fund Advisors LP boosted its position in Microsoft by 10.5% during the first quarter. Dimensional Fund Advisors LP now owns 29,323,744 shares of the software giant’s stock valued at $10,852,884,000 after purchasing an additional 2,784,809 shares during the last quarter. Hedge funds and other institutional investors own 71.13% of the company’s stock.

Insider Buying and Selling In related news, CEO Judson Althoff sold 10,000 shares of the firm’s stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total value of $4,878,900.00. Following the transaction, the chief executive officer directly owned 100,447 shares of the company’s stock, valued at approximately $49,007,086.83. This trade represents a 9.05% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Amy Hood sold 41,674 shares of the business’s stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $498.27, for a total value of $20,764,903.98. Following the completion of the sale, the executive vice president owned 533,624 shares of the company’s stock, valued at approximately $265,888,830.48. This trade represents a 7.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 150,314 shares of company stock worth $75,404,992. Insiders own 0.03% of the company’s stock.

Microsoft Trading Down 0.3% Shares of NASDAQ:MSFT opened at $531.87 on Wednesday. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07. The stock has a market capitalization of $3.95 trillion, a PE ratio of 29.61, a P/E/G ratio of 1.71 and a beta of 1.10. Microsoft Corporation has a 1 year low of $349.20 and a 1 year high of $553.72. The firm has a fifty day moving average price of $506.64 and a 200 day moving average price of $443.46. Microsoft (NASDAQ:MSFT – Get Free Report) last posted its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, beating the consensus estimate of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%. The company had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. During the same period last year, the company earned $3.65 earnings per share. The business’s revenue was up 17.7% compared to the same quarter last year. Analysts expect that Microsoft Corporation will post 19.65 EPS for the current fiscal year.

Microsoft Increases Dividend The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be paid a dividend of $0.98 per share. This is a boost from Microsoft’s previous quarterly dividend of $0.91. The ex-dividend date is Thursday, November 19th. This represents a $3.92 annualized dividend and a dividend yield of 0.7%. Microsoft’s dividend payout ratio is currently 20.27%.

Key Microsoft News Here are the key news stories impacting Microsoft this week:

Positive Sentiment: Analyst optimism and earnings expectations: BMO Capital raised its Microsoft price target to $600 while maintaining an Outperform rating, citing potential upside for Azure. Bernstein also reiterated Outperform and lifted its target to $662. Analysts expect Microsoft’s Oct. 28 results to benefit from Azure demand and expanding enterprise AI adoption. Boeing and Microsoft AI platform article Positive Sentiment: AI and cloud growth remain the core bull case: Commentary points to robust Azure infrastructure demand, commercial customer commitments and Microsoft’s ability to monetize AI across enterprise markets. Its new Maia AI chips could eventually reduce reliance on outside processors and lower inference costs, although execution remains important. Microsoft Q1 outlook Positive Sentiment: Xbox and industry partnerships: Microsoft plans next-generation Xbox consoles and handheld devices for the 2027–2028 holiday seasons. Separately, its partnership with AMD is intended to improve Xbox performance, while Boeing’s new Dataliner aircraft-data platform uses Microsoft Azure AI Foundry and could support enterprise cloud adoption. Next-generation Xbox article Neutral Sentiment: Tokenized-stock objection: Microsoft joined Alphabet and Goldman Sachs in objecting to having its shares listed on a proposed OKX-ICE tokenized-stock platform. The move may limit potential trading exposure but does not directly affect operating results. Tokenized stocks article Negative Sentiment: U.K. AI data-center withdrawal: Microsoft withdrew as anchor tenant from Nscale’s planned Loughton, Essex, facility because grid-connection delays threatened the power supply. The decision highlights electricity and permitting constraints that could slow Azure capacity expansion and increase infrastructure costs. Microsoft U.K. data-center withdrawal Negative Sentiment: Regulatory and execution pressure: Britain’s competition watchdog is considering strategic-market-status rules for Microsoft’s business software, potentially increasing compliance requirements. Investors are also watching whether very large AI capital expenditures generate sufficient revenue and cash flow to justify the spending. U.K. regulation article Negative Sentiment: Broader AI-stock weakness: A selloff across AI-related equities and concerns about financing, power availability and uncertain returns are weighing on large technology stocks, including Microsoft. The company’s elevated valuation leaves less room for disappointment if Azure growth or earnings guidance falls short. Analysts Set New Price Targets A number of brokerages have commented on MSFT. Tigress Financial boosted their target price on Microsoft from $680.00 to $690.00 and gave the company a “buy” rating in a research note on Wednesday, August 5th. Benchmark reaffirmed a “buy” rating on shares of Microsoft in a research note on Friday, July 24th. Citizens Jmp reiterated a “market outperform” rating and set a $550.00 price target on shares of Microsoft in a report on Tuesday, September 15th. Needham & Company LLC initiated coverage on Microsoft in a research note on Wednesday, September 23rd. They issued a “buy” rating for the company. Finally, JPMorgan Chase & Co. reissued a “buy” rating on shares of Microsoft in a research note on Monday, September 28th. Forty-three analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $592.15.

View Our Latest Analysis on Microsoft

Microsoft Company Profile (Free Report)

Microsoft Corporation (NASDAQ:MSFT) is a global technology company that develops software, cloud services, devices and digital platforms. Its products and services are used by consumers, businesses, governments and educational institutions worldwide.

The company’s principal offerings include the Windows operating system; Microsoft 365 productivity applications such as Word, Excel, Teams and Outlook; Azure cloud computing and infrastructure services; Dynamics business applications; and enterprise security solutions.

Recommended Stories Five stocks we like better than Microsoft Aurora Rejects Curaleaf’s Higher Bid, But the Takeover Fight Isn’t Over Centrus Energy Is Building a Nuclear Fuel Powerhouse—Why Is Its Stock Struggling? Halliburton Gains Traction: Multiyear Upcycle Ahead Meta Platforms’ AI Comeback Faces an Earnings Test—And a $10 Billion Charge Want to see what other hedge funds are holding MSFT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Microsoft Corporation (NASDAQ:MSFT – Free Report).

Receive News & Ratings for Microsoft Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Microsoft and related companies with MarketBeat.com's FREE daily email newsletter.

One68 Global Capital LLC bought a new position in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) during the second quarter, according to its most recent Form 13F filing with the SEC. The fund bought 3,000 shares of the software giant’s stock, valued at approximately $1,119,000. Microsoft comprises about 2.4% of One68 Global Capital LLC’s portfolio, making the stock its 9th biggest holding.

Other large investors have also added to or reduced their stakes in the company. Stonehage Fleming Financial Services Holdings Ltd acquired a new stake in Microsoft during the 2nd quarter valued at $135,400,000. Blue Edge Capital LLC bought a new position in Microsoft during the second quarter worth $8,461,000. Jacobs Equity LLC acquired a new position in shares of Microsoft in the second quarter valued at $673,000. Redwood Investment Management LLC acquired a new position in shares of Microsoft in the second quarter valued at $10,357,000. Finally, Parvin Asset Management LLC bought a new position in shares of Microsoft in the second quarter valued at about $2,106,000. Institutional investors own 71.13% of the company’s stock.

Trending Headlines about Microsoft Here are the key news stories impacting Microsoft this week:

Positive Sentiment: Analyst optimism and earnings expectations: BMO Capital raised its Microsoft price target to $600 while maintaining an Outperform rating, citing potential upside for Azure. Bernstein also reiterated Outperform and lifted its target to $662. Analysts expect Microsoft’s Oct. 28 results to benefit from Azure demand and expanding enterprise AI adoption. Boeing and Microsoft AI platform article Positive Sentiment: AI and cloud growth remain the core bull case: Commentary points to robust Azure infrastructure demand, commercial customer commitments and Microsoft’s ability to monetize AI across enterprise markets. Its new Maia AI chips could eventually reduce reliance on outside processors and lower inference costs, although execution remains important. Microsoft Q1 outlook Positive Sentiment: Xbox and industry partnerships: Microsoft plans next-generation Xbox consoles and handheld devices for the 2027–2028 holiday seasons. Separately, its partnership with AMD is intended to improve Xbox performance, while Boeing’s new Dataliner aircraft-data platform uses Microsoft Azure AI Foundry and could support enterprise cloud adoption. Next-generation Xbox article Neutral Sentiment: Tokenized-stock objection: Microsoft joined Alphabet and Goldman Sachs in objecting to having its shares listed on a proposed OKX-ICE tokenized-stock platform. The move may limit potential trading exposure but does not directly affect operating results. Tokenized stocks article Negative Sentiment: U.K. AI data-center withdrawal: Microsoft withdrew as anchor tenant from Nscale’s planned Loughton, Essex, facility because grid-connection delays threatened the power supply. The decision highlights electricity and permitting constraints that could slow Azure capacity expansion and increase infrastructure costs. Microsoft U.K. data-center withdrawal Negative Sentiment: Regulatory and execution pressure: Britain’s competition watchdog is considering strategic-market-status rules for Microsoft’s business software, potentially increasing compliance requirements. Investors are also watching whether very large AI capital expenditures generate sufficient revenue and cash flow to justify the spending. U.K. regulation article Negative Sentiment: Broader AI-stock weakness: A selloff across AI-related equities and concerns about financing, power availability and uncertain returns are weighing on large technology stocks, including Microsoft. The company’s elevated valuation leaves less room for disappointment if Azure growth or earnings guidance falls short. Insider Buying and Selling at Microsoft In other Microsoft news, CEO Satya Nadella sold 86,525 shares of the stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the transaction, the chief executive officer owned 486,763 shares in the company, valued at $244,092,173.98. This represents a 15.09% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Takeshi Numoto sold 4,810 shares of the firm’s stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the transaction, the executive vice president directly owned 42,677 shares in the company, valued at $21,188,276.96. This represents a 10.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 150,314 shares of company stock worth $75,404,992. 0.03% of the stock is currently owned by company insiders. Microsoft Stock Down 0.3% MSFT opened at $531.87 on Wednesday. Microsoft Corporation has a fifty-two week low of $349.20 and a fifty-two week high of $553.72. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. The company has a market capitalization of $3.95 trillion, a P/E ratio of 29.61, a P/E/G ratio of 1.71 and a beta of 1.10. The stock has a fifty day moving average of $506.64 and a 200-day moving average of $443.46.

Microsoft (NASDAQ:MSFT – Get Free Report) last announced its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.24 by $0.50. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The company had revenue of $90.01 billion during the quarter, compared to analysts’ expectations of $87.62 billion. During the same quarter in the previous year, the business posted $3.65 earnings per share. Microsoft’s quarterly revenue was up 17.7% on a year-over-year basis. On average, equities analysts expect that Microsoft Corporation will post 19.65 EPS for the current year.

Microsoft Increases Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be issued a $0.98 dividend. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $3.92 dividend on an annualized basis and a yield of 0.7%. This is an increase from Microsoft’s previous quarterly dividend of $0.91. Microsoft’s payout ratio is presently 20.27%.

Wall Street Analyst Weigh In MSFT has been the subject of a number of research reports. Citigroup raised their target price on shares of Microsoft from $600.00 to $636.00 and gave the stock a “buy” rating in a research note on Thursday, October 15th. DA Davidson reiterated a “buy” rating and issued a $550.00 price target on shares of Microsoft in a research note on Thursday, July 30th. Truist Financial reissued a “buy” rating and issued a $575.00 price target on shares of Microsoft in a report on Wednesday, July 22nd. BMO Capital Markets increased their price target on shares of Microsoft from $515.00 to $600.00 and gave the company an “outperform” rating in a report on Tuesday. Finally, Guggenheim restated a “buy” rating and set a $586.00 price objective on shares of Microsoft in a research report on Monday, July 27th. Forty-three analysts have rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $592.15.

View Our Latest Research Report on MSFT

About Microsoft (Free Report)

Microsoft Corporation (NASDAQ:MSFT) is a global technology company that develops software, cloud services, devices and digital platforms. Its products and services are used by consumers, businesses, governments and educational institutions worldwide.

The company’s principal offerings include the Windows operating system; Microsoft 365 productivity applications such as Word, Excel, Teams and Outlook; Azure cloud computing and infrastructure services; Dynamics business applications; and enterprise security solutions.

Recommended Stories Five stocks we like better than Microsoft Aurora Rejects Curaleaf’s Higher Bid, But the Takeover Fight Isn’t Over Centrus Energy Is Building a Nuclear Fuel Powerhouse—Why Is Its Stock Struggling? Halliburton Gains Traction: Multiyear Upcycle Ahead Meta Platforms’ AI Comeback Faces an Earnings Test—And a $10 Billion Charge Want to see what other hedge funds are holding MSFT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Microsoft Corporation (NASDAQ:MSFT – Free Report).

Receive News & Ratings for Microsoft Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Microsoft and related companies with MarketBeat.com's FREE daily email newsletter.

Corient Private Wealth LP bought a new stake in Microsoft Corporation (NASDAQ:MSFT – Free Report) in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm bought 5,476,562 shares of the software giant’s stock, valued at approximately $2,042,837,000. Microsoft comprises about 1.5% of Corient Private Wealth LP’s investment portfolio, making the stock its 13th largest position. Corient Private Wealth LP owned about 0.07% of Microsoft at the end of the most recent quarter.

Other institutional investors have also recently added to or reduced their stakes in the company. Punch & Associates Investment Management Inc. purchased a new position in Microsoft in the 2nd quarter valued at approximately $16,082,000. Palestra Capital Management LLC acquired a new position in shares of Microsoft in the second quarter worth $28,969,000. Palogic Value Management L.P. acquired a new position in shares of Microsoft in the second quarter worth $7,867,000. Ausdal Financial Partners Inc. purchased a new stake in shares of Microsoft during the second quarter worth $20,998,000. Finally, Axim Planning & Wealth purchased a new stake in shares of Microsoft during the second quarter worth $902,000. Institutional investors and hedge funds own 71.13% of the company’s stock.

Microsoft Trading Down 0.3% Shares of NASDAQ:MSFT opened at $531.87 on Wednesday. Microsoft Corporation has a 52 week low of $349.20 and a 52 week high of $553.72. The company’s 50 day moving average is $506.64 and its two-hundred day moving average is $443.46. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07. The company has a market cap of $3.95 trillion, a PE ratio of 29.61, a P/E/G ratio of 1.71 and a beta of 1.10.

Microsoft (NASDAQ:MSFT – Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, beating analysts’ consensus estimates of $4.24 by $0.50. The business had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The company’s revenue was up 17.7% on a year-over-year basis. During the same period last year, the business earned $3.65 EPS. Equities analysts predict that Microsoft Corporation will post 19.65 earnings per share for the current fiscal year. Microsoft Increases Dividend The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be issued a $0.98 dividend. This represents a $3.92 annualized dividend and a yield of 0.7%. This is a boost from Microsoft’s previous quarterly dividend of $0.91. The ex-dividend date of this dividend is Thursday, November 19th. Microsoft’s dividend payout ratio is currently 20.27%.

Insiders Place Their Bets In other Microsoft news, CEO Judson Althoff sold 10,000 shares of Microsoft stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the completion of the sale, the chief executive officer directly owned 100,447 shares of the company’s stock, valued at $49,007,086.83. The trade was a 9.05% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Takeshi Numoto sold 4,810 shares of the company’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total value of $2,388,068.80. Following the transaction, the executive vice president directly owned 42,677 shares of the company’s stock, valued at approximately $21,188,276.96. This represents a 10.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 150,314 shares of company stock worth $75,404,992. 0.03% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth MSFT has been the topic of several analyst reports. Stifel Nicolaus upgraded Microsoft from a “hold” rating to a “buy” rating and increased their price objective for the company from $530.00 to $575.00 in a research note on Tuesday, September 22nd. Jefferies Financial Group boosted their target price on Microsoft from $575.00 to $650.00 and gave the stock a “buy” rating in a research note on Wednesday, October 14th. Tigress Financial boosted their target price on Microsoft from $680.00 to $690.00 and gave the stock a “buy” rating in a research note on Wednesday, August 5th. Piper Sandler restated an “overweight” rating on shares of Microsoft in a report on Tuesday. Finally, Morgan Stanley lowered Microsoft from an “overweight” rating to a “negative” rating in a research report on Monday, October 5th. Forty-three analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $592.15.

View Our Latest Analysis on MSFT

More Microsoft News Here are the key news stories impacting Microsoft this week:

Positive Sentiment: Analyst optimism and earnings expectations: BMO Capital raised its Microsoft price target to $600 while maintaining an Outperform rating, citing potential upside for Azure. Bernstein also reiterated Outperform and lifted its target to $662. Analysts expect Microsoft’s Oct. 28 results to benefit from Azure demand and expanding enterprise AI adoption. Boeing and Microsoft AI platform article Positive Sentiment: AI and cloud growth remain the core bull case: Commentary points to robust Azure infrastructure demand, commercial customer commitments and Microsoft’s ability to monetize AI across enterprise markets. Its new Maia AI chips could eventually reduce reliance on outside processors and lower inference costs, although execution remains important. Microsoft Q1 outlook Positive Sentiment: Xbox and industry partnerships: Microsoft plans next-generation Xbox consoles and handheld devices for the 2027–2028 holiday seasons. Separately, its partnership with AMD is intended to improve Xbox performance, while Boeing’s new Dataliner aircraft-data platform uses Microsoft Azure AI Foundry and could support enterprise cloud adoption. Next-generation Xbox article Neutral Sentiment: Tokenized-stock objection: Microsoft joined Alphabet and Goldman Sachs in objecting to having its shares listed on a proposed OKX-ICE tokenized-stock platform. The move may limit potential trading exposure but does not directly affect operating results. Tokenized stocks article Negative Sentiment: U.K. AI data-center withdrawal: Microsoft withdrew as anchor tenant from Nscale’s planned Loughton, Essex, facility because grid-connection delays threatened the power supply. The decision highlights electricity and permitting constraints that could slow Azure capacity expansion and increase infrastructure costs. Microsoft U.K. data-center withdrawal Negative Sentiment: Regulatory and execution pressure: Britain’s competition watchdog is considering strategic-market-status rules for Microsoft’s business software, potentially increasing compliance requirements. Investors are also watching whether very large AI capital expenditures generate sufficient revenue and cash flow to justify the spending. U.K. regulation article Negative Sentiment: Broader AI-stock weakness: A selloff across AI-related equities and concerns about financing, power availability and uncertain returns are weighing on large technology stocks, including Microsoft. The company’s elevated valuation leaves less room for disappointment if Azure growth or earnings guidance falls short. Microsoft Profile (Free Report)

Microsoft Corporation (NASDAQ:MSFT) is a global technology company that develops software, cloud services, devices and digital platforms. Its products and services are used by consumers, businesses, governments and educational institutions worldwide.

The company’s principal offerings include the Windows operating system; Microsoft 365 productivity applications such as Word, Excel, Teams and Outlook; Azure cloud computing and infrastructure services; Dynamics business applications; and enterprise security solutions.

Featured Stories Five stocks we like better than Microsoft Aurora Rejects Curaleaf’s Higher Bid, But the Takeover Fight Isn’t Over Centrus Energy Is Building a Nuclear Fuel Powerhouse—Why Is Its Stock Struggling? Halliburton Gains Traction: Multiyear Upcycle Ahead Meta Platforms’ AI Comeback Faces an Earnings Test—And a $10 Billion Charge Want to see what other hedge funds are holding MSFT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Microsoft Corporation (NASDAQ:MSFT – Free Report).

Receive News & Ratings for Microsoft Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Microsoft and related companies with MarketBeat.com's FREE daily email newsletter.

Parvin Asset Management LLC acquired a new stake in Microsoft Corporation (NASDAQ:MSFT – Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor acquired 5,645 shares of the software giant’s stock, valued at approximately $2,106,000. Microsoft comprises approximately 1.7% of Parvin Asset Management LLC’s portfolio, making the stock its 8th largest position.

Several other hedge funds have also recently added to or reduced their stakes in MSFT. Bank of America Corp DE purchased a new position in shares of Microsoft during the 2nd quarter worth approximately $27,338,370,000. Auto Owners Insurance Co raised its position in shares of Microsoft by 56,160.8% during the 4th quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant’s stock worth $29,073,486,000 after purchasing an additional 60,009,531 shares during the last quarter. Legal & General Group Plc acquired a new position in shares of Microsoft during the 2nd quarter worth approximately $18,306,443,000. Amundi raised its position in shares of Microsoft by 30.8% during the 1st quarter. Amundi now owns 41,675,076 shares of the software giant’s stock worth $15,426,862,000 after purchasing an additional 9,814,598 shares during the last quarter. Finally, Dimensional Fund Advisors LP raised its position in shares of Microsoft by 10.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 29,323,744 shares of the software giant’s stock worth $10,852,884,000 after purchasing an additional 2,784,809 shares during the last quarter. 71.13% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth A number of research firms recently issued reports on MSFT. Wolfe Research lowered Microsoft from an “outperform” rating to a “hold” rating in a research note on Wednesday, September 23rd. Needham & Company LLC initiated coverage on Microsoft in a research report on Wednesday, September 23rd. They set a “buy” rating for the company. Tigress Financial raised their price target on Microsoft from $680.00 to $690.00 and gave the stock a “buy” rating in a research report on Wednesday, August 5th. UBS Group boosted their price target on Microsoft from $525.00 to $675.00 and gave the stock a “buy” rating in a report on Thursday, October 15th. Finally, Oppenheimer upped their price objective on Microsoft from $515.00 to $570.00 and gave the company an “outperform” rating in a research report on Tuesday, September 22nd. Forty-three investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $592.15.

View Our Latest Research Report on MSFT Key Headlines Impacting Microsoft Here are the key news stories impacting Microsoft this week:

Positive Sentiment: Analyst optimism and earnings expectations: BMO Capital raised its Microsoft price target to $600 while maintaining an Outperform rating, citing potential upside for Azure. Bernstein also reiterated Outperform and lifted its target to $662. Analysts expect Microsoft’s Oct. 28 results to benefit from Azure demand and expanding enterprise AI adoption. Boeing and Microsoft AI platform article Positive Sentiment: AI and cloud growth remain the core bull case: Commentary points to robust Azure infrastructure demand, commercial customer commitments and Microsoft’s ability to monetize AI across enterprise markets. Its new Maia AI chips could eventually reduce reliance on outside processors and lower inference costs, although execution remains important. Microsoft Q1 outlook Positive Sentiment: Xbox and industry partnerships: Microsoft plans next-generation Xbox consoles and handheld devices for the 2027–2028 holiday seasons. Separately, its partnership with AMD is intended to improve Xbox performance, while Boeing’s new Dataliner aircraft-data platform uses Microsoft Azure AI Foundry and could support enterprise cloud adoption. Next-generation Xbox article Neutral Sentiment: Tokenized-stock objection: Microsoft joined Alphabet and Goldman Sachs in objecting to having its shares listed on a proposed OKX-ICE tokenized-stock platform. The move may limit potential trading exposure but does not directly affect operating results. Tokenized stocks article Negative Sentiment: U.K. AI data-center withdrawal: Microsoft withdrew as anchor tenant from Nscale’s planned Loughton, Essex, facility because grid-connection delays threatened the power supply. The decision highlights electricity and permitting constraints that could slow Azure capacity expansion and increase infrastructure costs. Microsoft U.K. data-center withdrawal Negative Sentiment: Regulatory and execution pressure: Britain’s competition watchdog is considering strategic-market-status rules for Microsoft’s business software, potentially increasing compliance requirements. Investors are also watching whether very large AI capital expenditures generate sufficient revenue and cash flow to justify the spending. U.K. regulation article Negative Sentiment: Broader AI-stock weakness: A selloff across AI-related equities and concerns about financing, power availability and uncertain returns are weighing on large technology stocks, including Microsoft. The company’s elevated valuation leaves less room for disappointment if Azure growth or earnings guidance falls short. Insider Activity at Microsoft In other news, CEO Satya Nadella sold 86,525 shares of the stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the transaction, the chief executive officer directly owned 486,763 shares in the company, valued at $244,092,173.98. This represents a 15.09% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Takeshi Numoto sold 4,810 shares of the firm’s stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the completion of the sale, the executive vice president directly owned 42,677 shares in the company, valued at $21,188,276.96. This represents a 10.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 150,314 shares of company stock worth $75,404,992. 0.03% of the stock is owned by insiders.

Microsoft Stock Performance Shares of NASDAQ MSFT opened at $531.87 on Wednesday. The company has a 50-day simple moving average of $506.64 and a 200-day simple moving average of $443.46. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. The company has a market cap of $3.95 trillion, a PE ratio of 29.61, a price-to-earnings-growth ratio of 1.71 and a beta of 1.10. Microsoft Corporation has a 12 month low of $349.20 and a 12 month high of $553.72.

Microsoft (NASDAQ:MSFT – Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.24 by $0.50. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The business had revenue of $90.01 billion for the quarter, compared to the consensus estimate of $87.62 billion. During the same quarter in the prior year, the firm posted $3.65 earnings per share. The company’s quarterly revenue was up 17.7% compared to the same quarter last year. On average, equities analysts anticipate that Microsoft Corporation will post 19.65 earnings per share for the current year.

Microsoft Increases Dividend The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be paid a dividend of $0.98 per share. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.7%. This is an increase from Microsoft’s previous quarterly dividend of $0.91. Microsoft’s dividend payout ratio is currently 20.27%.

Microsoft Company Profile (Free Report)

Microsoft Corporation (NASDAQ:MSFT) is a global technology company that develops software, cloud services, devices and digital platforms. Its products and services are used by consumers, businesses, governments and educational institutions worldwide.

The company’s principal offerings include the Windows operating system; Microsoft 365 productivity applications such as Word, Excel, Teams and Outlook; Azure cloud computing and infrastructure services; Dynamics business applications; and enterprise security solutions.

Further Reading Five stocks we like better than Microsoft Aurora Rejects Curaleaf’s Higher Bid, But the Takeover Fight Isn’t Over Centrus Energy Is Building a Nuclear Fuel Powerhouse—Why Is Its Stock Struggling? Halliburton Gains Traction: Multiyear Upcycle Ahead Meta Platforms’ AI Comeback Faces an Earnings Test—And a $10 Billion Charge

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Bcwm LLC purchased a new stake in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund purchased 26,841 shares of the software giant’s stock, valued at approximately $10,012,000. Microsoft accounts for approximately 2.9% of Bcwm LLC’s investment portfolio, making the stock its 10th largest position.

A number of other large investors have also recently made changes to their positions in the stock. Frankly Finances LLC bought a new stake in Microsoft during the 2nd quarter worth approximately $35,000. Bard Associates Inc. purchased a new position in Microsoft during the second quarter valued at approximately $37,000. PMV Capital Advisers LLC bought a new position in shares of Microsoft in the second quarter worth approximately $38,000. Fiduciary Advisors Inc. boosted its position in shares of Microsoft by 37.4% in the second quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant’s stock worth $47,000 after purchasing an additional 34 shares during the period. Finally, Persistent Asset Partners Ltd bought a new position in shares of Microsoft in the second quarter worth approximately $60,000. 71.13% of the stock is owned by hedge funds and other institutional investors.

More Microsoft News Here are the key news stories impacting Microsoft this week:

Positive Sentiment: Analyst optimism and earnings expectations: BMO Capital raised its Microsoft price target to $600 while maintaining an Outperform rating, citing potential upside for Azure. Bernstein also reiterated Outperform and lifted its target to $662. Analysts expect Microsoft’s Oct. 28 results to benefit from Azure demand and expanding enterprise AI adoption. Boeing and Microsoft AI platform article Positive Sentiment: AI and cloud growth remain the core bull case: Commentary points to robust Azure infrastructure demand, commercial customer commitments and Microsoft’s ability to monetize AI across enterprise markets. Its new Maia AI chips could eventually reduce reliance on outside processors and lower inference costs, although execution remains important. Microsoft Q1 outlook Positive Sentiment: Xbox and industry partnerships: Microsoft plans next-generation Xbox consoles and handheld devices for the 2027–2028 holiday seasons. Separately, its partnership with AMD is intended to improve Xbox performance, while Boeing’s new Dataliner aircraft-data platform uses Microsoft Azure AI Foundry and could support enterprise cloud adoption. Next-generation Xbox article Neutral Sentiment: Tokenized-stock objection: Microsoft joined Alphabet and Goldman Sachs in objecting to having its shares listed on a proposed OKX-ICE tokenized-stock platform. The move may limit potential trading exposure but does not directly affect operating results. Tokenized stocks article Negative Sentiment: U.K. AI data-center withdrawal: Microsoft withdrew as anchor tenant from Nscale’s planned Loughton, Essex, facility because grid-connection delays threatened the power supply. The decision highlights electricity and permitting constraints that could slow Azure capacity expansion and increase infrastructure costs. Microsoft U.K. data-center withdrawal Negative Sentiment: Regulatory and execution pressure: Britain’s competition watchdog is considering strategic-market-status rules for Microsoft’s business software, potentially increasing compliance requirements. Investors are also watching whether very large AI capital expenditures generate sufficient revenue and cash flow to justify the spending. U.K. regulation article Negative Sentiment: Broader AI-stock weakness: A selloff across AI-related equities and concerns about financing, power availability and uncertain returns are weighing on large technology stocks, including Microsoft. The company’s elevated valuation leaves less room for disappointment if Azure growth or earnings guidance falls short. Insider Activity at Microsoft In other news, CEO Judson Althoff sold 10,000 shares of the firm’s stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the completion of the transaction, the chief executive officer owned 100,447 shares in the company, valued at $49,007,086.83. This trade represents a 9.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Satya Nadella sold 86,525 shares of the firm’s stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total value of $43,388,826.50. Following the transaction, the chief executive officer owned 486,763 shares of the company’s stock, valued at approximately $244,092,173.98. The trade was a 15.09% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 150,314 shares of company stock worth $75,404,992 over the last 90 days. Company insiders own 0.03% of the company’s stock. Analyst Upgrades and Downgrades A number of analysts have recently issued reports on MSFT shares. Weiss Ratings raised shares of Microsoft from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, October 8th. Jefferies Financial Group lifted their target price on shares of Microsoft from $575.00 to $650.00 and gave the company a “buy” rating in a research note on Wednesday, October 14th. Yorkville Ives assumed coverage on shares of Microsoft in a research note on Monday, October 5th. They set an “outperform” rating and a $615.00 target price on the stock. Needham & Company LLC began coverage on shares of Microsoft in a report on Wednesday, September 23rd. They issued a “buy” rating for the company. Finally, Benchmark reiterated a “buy” rating on shares of Microsoft in a research note on Friday, July 24th. Forty-three analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $592.15.

Check Out Our Latest Stock Analysis on MSFT

Microsoft Price Performance MSFT stock opened at $531.87 on Wednesday. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. The company’s fifty day moving average price is $506.64 and its 200-day moving average price is $443.46. Microsoft Corporation has a one year low of $349.20 and a one year high of $553.72. The company has a market capitalization of $3.95 trillion, a PE ratio of 29.61, a price-to-earnings-growth ratio of 1.71 and a beta of 1.10.

Microsoft (NASDAQ:MSFT – Get Free Report) last posted its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, beating the consensus estimate of $4.24 by $0.50. The company had revenue of $90.01 billion during the quarter, compared to analysts’ expectations of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. Microsoft’s quarterly revenue was up 17.7% on a year-over-year basis. During the same period last year, the company posted $3.65 earnings per share. On average, equities analysts anticipate that Microsoft Corporation will post 19.65 EPS for the current fiscal year.

Microsoft Increases Dividend The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be issued a dividend of $0.98 per share. This is a boost from Microsoft’s previous quarterly dividend of $0.91. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $3.92 annualized dividend and a dividend yield of 0.7%. Microsoft’s payout ratio is currently 20.27%.

Microsoft Company Profile (Free Report)

Microsoft Corporation (NASDAQ:MSFT) is a global technology company that develops software, cloud services, devices and digital platforms. Its products and services are used by consumers, businesses, governments and educational institutions worldwide.

The company’s principal offerings include the Windows operating system; Microsoft 365 productivity applications such as Word, Excel, Teams and Outlook; Azure cloud computing and infrastructure services; Dynamics business applications; and enterprise security solutions.

See Also Five stocks we like better than Microsoft Aurora Rejects Curaleaf’s Higher Bid, But the Takeover Fight Isn’t Over Centrus Energy Is Building a Nuclear Fuel Powerhouse—Why Is Its Stock Struggling? Halliburton Gains Traction: Multiyear Upcycle Ahead Meta Platforms’ AI Comeback Faces an Earnings Test—And a $10 Billion Charge Want to see what other hedge funds are holding MSFT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Microsoft Corporation (NASDAQ:MSFT – Free Report).

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Blue Edge Capital LLC bought a new stake in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor bought 22,682 shares of the software giant’s stock, valued at approximately $8,461,000. Microsoft comprises 1.0% of Blue Edge Capital LLC’s investment portfolio, making the stock its 28th largest holding.

Other hedge funds have also modified their holdings of the company. Strategic Wealth Advisors LLC lifted its stake in Microsoft by 1.7% during the second quarter. Strategic Wealth Advisors LLC now owns 1,473 shares of the software giant’s stock valued at $549,000 after buying an additional 24 shares in the last quarter. Friedenthal Financial boosted its holdings in shares of Microsoft by 6.2% in the first quarter. Friedenthal Financial now owns 431 shares of the software giant’s stock worth $160,000 after buying an additional 25 shares during the period. Sequent Planning LLC boosted its holdings in shares of Microsoft by 0.7% in the first quarter. Sequent Planning LLC now owns 3,733 shares of the software giant’s stock worth $1,382,000 after buying an additional 25 shares during the period. Lee Johnson Capital Management LLC increased its position in shares of Microsoft by 3.8% in the second quarter. Lee Johnson Capital Management LLC now owns 687 shares of the software giant’s stock worth $256,000 after acquiring an additional 25 shares in the last quarter. Finally, Riverpoint Wealth Management Holdings LLC increased its position in shares of Microsoft by 0.5% in the first quarter. Riverpoint Wealth Management Holdings LLC now owns 5,543 shares of the software giant’s stock worth $2,052,000 after acquiring an additional 26 shares in the last quarter. 71.13% of the stock is owned by hedge funds and other institutional investors.

Microsoft Price Performance Shares of MSFT opened at $531.87 on Wednesday. The company has a market capitalization of $3.95 trillion, a price-to-earnings ratio of 29.61, a P/E/G ratio of 1.71 and a beta of 1.10. Microsoft Corporation has a fifty-two week low of $349.20 and a fifty-two week high of $553.72. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. The business’s 50-day moving average is $506.64 and its 200-day moving average is $443.46.

Microsoft (NASDAQ:MSFT – Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.24 by $0.50. The business had revenue of $90.01 billion during the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The firm’s revenue was up 17.7% compared to the same quarter last year. During the same period in the prior year, the firm earned $3.65 earnings per share. Equities research analysts expect that Microsoft Corporation will post 19.65 EPS for the current fiscal year. Microsoft Increases Dividend The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be paid a $0.98 dividend. The ex-dividend date is Thursday, November 19th. This represents a $3.92 annualized dividend and a yield of 0.7%. This is a boost from Microsoft’s previous quarterly dividend of $0.91. Microsoft’s dividend payout ratio (DPR) is currently 20.27%.

Insider Activity at Microsoft In other Microsoft news, EVP Takeshi Numoto sold 4,810 shares of the stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total value of $2,388,068.80. Following the completion of the sale, the executive vice president owned 42,677 shares in the company, valued at $21,188,276.96. This represents a 10.13% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Amy Hood sold 41,674 shares of the stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $498.27, for a total transaction of $20,764,903.98. Following the completion of the sale, the executive vice president owned 533,624 shares of the company’s stock, valued at approximately $265,888,830.48. The trade was a 7.24% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 150,314 shares of company stock worth $75,404,992 in the last 90 days. 0.03% of the stock is owned by corporate insiders.

Trending Headlines about Microsoft Here are the key news stories impacting Microsoft this week:

Positive Sentiment: Analyst optimism and earnings expectations: BMO Capital raised its Microsoft price target to $600 while maintaining an Outperform rating, citing potential upside for Azure. Bernstein also reiterated Outperform and lifted its target to $662. Analysts expect Microsoft’s Oct. 28 results to benefit from Azure demand and expanding enterprise AI adoption. Boeing and Microsoft AI platform article Positive Sentiment: AI and cloud growth remain the core bull case: Commentary points to robust Azure infrastructure demand, commercial customer commitments and Microsoft’s ability to monetize AI across enterprise markets. Its new Maia AI chips could eventually reduce reliance on outside processors and lower inference costs, although execution remains important. Microsoft Q1 outlook Positive Sentiment: Xbox and industry partnerships: Microsoft plans next-generation Xbox consoles and handheld devices for the 2027–2028 holiday seasons. Separately, its partnership with AMD is intended to improve Xbox performance, while Boeing’s new Dataliner aircraft-data platform uses Microsoft Azure AI Foundry and could support enterprise cloud adoption. Next-generation Xbox article Neutral Sentiment: Tokenized-stock objection: Microsoft joined Alphabet and Goldman Sachs in objecting to having its shares listed on a proposed OKX-ICE tokenized-stock platform. The move may limit potential trading exposure but does not directly affect operating results. Tokenized stocks article Negative Sentiment: U.K. AI data-center withdrawal: Microsoft withdrew as anchor tenant from Nscale’s planned Loughton, Essex, facility because grid-connection delays threatened the power supply. The decision highlights electricity and permitting constraints that could slow Azure capacity expansion and increase infrastructure costs. Microsoft U.K. data-center withdrawal Negative Sentiment: Regulatory and execution pressure: Britain’s competition watchdog is considering strategic-market-status rules for Microsoft’s business software, potentially increasing compliance requirements. Investors are also watching whether very large AI capital expenditures generate sufficient revenue and cash flow to justify the spending. U.K. regulation article Negative Sentiment: Broader AI-stock weakness: A selloff across AI-related equities and concerns about financing, power availability and uncertain returns are weighing on large technology stocks, including Microsoft. The company’s elevated valuation leaves less room for disappointment if Azure growth or earnings guidance falls short. Wall Street Analyst Weigh In A number of equities research analysts have recently issued reports on MSFT shares. Bank of America boosted their price target on shares of Microsoft from $500.00 to $600.00 and gave the company a “buy” rating in a report on Tuesday, September 1st. Argus reduced their price target on shares of Microsoft from $620.00 to $510.00 and set a “buy” rating for the company in a research report on Friday, July 10th. Wells Fargo & Company raised their price objective on shares of Microsoft from $700.00 to $725.00 and gave the stock an “overweight” rating in a research note on Thursday, October 1st. UBS Group lifted their price objective on shares of Microsoft from $525.00 to $675.00 and gave the stock a “buy” rating in a research report on Thursday, October 15th. Finally, Citigroup lifted their price objective on shares of Microsoft from $600.00 to $636.00 and gave the stock a “buy” rating in a research report on Thursday, October 15th. Forty-three equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, Microsoft presently has an average rating of “Moderate Buy” and a consensus price target of $592.15.

Check Out Our Latest Analysis on MSFT

Microsoft Profile (Free Report)

Microsoft Corporation (NASDAQ:MSFT) is a global technology company that develops software, cloud services, devices and digital platforms. Its products and services are used by consumers, businesses, governments and educational institutions worldwide.

The company’s principal offerings include the Windows operating system; Microsoft 365 productivity applications such as Word, Excel, Teams and Outlook; Azure cloud computing and infrastructure services; Dynamics business applications; and enterprise security solutions.

See Also Five stocks we like better than Microsoft Aurora Rejects Curaleaf’s Higher Bid, But the Takeover Fight Isn’t Over Centrus Energy Is Building a Nuclear Fuel Powerhouse—Why Is Its Stock Struggling? Halliburton Gains Traction: Multiyear Upcycle Ahead Meta Platforms’ AI Comeback Faces an Earnings Test—And a $10 Billion Charge Want to see what other hedge funds are holding MSFT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Microsoft Corporation (NASDAQ:MSFT – Free Report).

Receive News & Ratings for Microsoft Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Microsoft and related companies with MarketBeat.com's FREE daily email newsletter.

With more than 80% of S&P 500 stocks down at least 10% from their highs, Ted Thatcher, founder and president of Bright Lake Wealth Management, reveals why he's bullish on Nvidia (NVDA), Microsoft (MSFT) and Alphabet (GOOGL), whether CoreWeave (CRWV) is a buying opportunity after the AI selloff, and where investors should put their money now. 00:00 Introduction 00:15 S&P 500: Bargains or warning sign?

by Todd Bishop on

Employees work on a soldering project during a workshop in a Microsoft Garage space. Microsoft is winding down The Garage as a companywide program, and some spaces could be restricted as early as this week. (Microsoft Photo)
Microsoft is winding down The Garage as a companywide program, ending a 17-year run for the effort that gave employees space and tools for side projects and ran the company’s Global Hackathon, according to an internal FAQ viewed by GeekWire.

The program, with a flagship location on Microsoft’s Redmond campus and more than a dozen other sites from Vancouver, B.C., to Beijing, became part of the company’s push for a more experimental culture under Satya Nadella, who took over as CEO in 2014.

In the FAQ, Microsoft says the experimentation that started in dedicated programs and spaces like The Garage now happens “every day within each of our teams,” as employees build new skills and adopt new tools in their regular work. The FAQ says the company is “reinventing how we foster innovation, learning, and experimentation” across Microsoft.

The move comes as Microsoft spends heavily on AI, much of it for data centers and other infrastructure, while cutting costs and jobs in other parts of the business.

“We regularly evaluate how we use our physical spaces to best support our employees, customers and partners,” a Microsoft spokesperson said in a statement. “As part of that ongoing work, we’re making changes to some Garage spaces. Innovation and a builder mindset remain central to how we work every day.”

The company declined to comment further, including on the effect on Garage employees.

The Garage will no longer operate “as a centralized function,” according to the FAQ, and the impact on each physical space “will vary by location.” Some Garage spaces could be restricted as early as Friday, Oct. 23. Neither the FAQ nor Microsoft’s statement says which spaces are affected, including the flagship location in Redmond. Employees can’t take equipment, tools or materials with them.

The future of the Global Hackathon is also unsettled. The FAQ says the hackathon team is “reimagining the program” and that Microsoft will have more to share later.

Microsoft’s public Garage website, which showcased hackathon projects and experimental apps, was redirecting to the Microsoft homepage as of Tuesday morning.

A Microsoft map shows The Garage’s 15 locations as of 2026. Microsoft hasn’t said which of them will be affected as it winds down the program. (Microsoft Graphic)
From Office Labs to companywide: The Garage started in 2009 inside Microsoft’s Office Labs group in Redmond, with the slogan “Doers. Not Talkers.” The idea was to support employees who were already building their own projects, rather than collecting ideas and funding the most popular ones.

The program took on a bigger role under Nadella. In July 2014, The Garage ran Microsoft’s first companywide hackathon, which drew more than 11,000 registrants from 80 countries. The event became an annual fixture of Microsoft’s culture.

The Garage also released experimental apps to the public, including Mouse without Borders, a tool for controlling multiple PCs with one keyboard and mouse, and Arrow Launcher, which became Microsoft Launcher for Android.

As of this year, Microsoft listed Garage locations in 15 regions, including Redmond, Vancouver, B.C., the Bay Area, New York City, Dublin, Israel, India and Beijing.

Employee reaction: On Blind, the anonymous workplace app that verifies users’ employers, a post titled “Amy kills the Garage” drew more than 70 comments. The poster attributed the move to cost-cutting by Microsoft CFO Amy Hood.

Another employee wrote that The Garage was where they met their friends on campus and made connections that advanced their career.

“The Garage offices were one of the last few cool things about Microsoft,” one commenter wrote.

The Federal Reserve is struggling to contain inflation while a trillion-dollar technology spending wave floods the economy with demand. The catch is that the companies igniting this fire may be the last ones burned by whatever it takes to put…

Artificial intelligence has become one of the American economy’s most powerful growth engines ever. Technology companies are pouring hundreds of billions of dollars into data centers, semiconductors, and electrical infrastructure, creating jobs and fueling demand across industries. Wall Street has rewarded that enthusiasm, pushing AI-related stocks higher even as other corners of the economy struggle with rising borrowing costs.

But the AI boom is creating an unexpected problem for the Federal Reserve. The same spending that’s helping keep the economy growing may also be keeping inflation elevated. And if the Fed needs to raise interest rates to cool things down, the companies driving the boom might be the least affected.

A $1 Trillion Inflation Problem According to an Oct. 19 Reuters report, AI-related investment could approach $1 trillion in 2027, equivalent to roughly 3% of U.S. gross domestic product. That’s an enormous amount of money chasing construction workers, electrical equipment, power supplies, and computing infrastructure. When demand grows faster than supply, prices rise.

The Fed, meanwhile, is already struggling to contain inflation. Following September’s quarter-point rate increase, its benchmark interest rate stands at 3.75% to 4.00%.

Cleveland Fed President Beth Hammack recently acknowledged that higher rates could slow economic activity outside the AI sector, reducing inflationary pressure without necessarily interrupting technology investment.

The Fed meets again Oct. 27–28, with another increase widely expected later this year. Ironically, the escalating AI spending commitments of technology giants could force the central bank to tighten financial conditions for everyone else.

A $1 trillion spending spree is sabotaging the Fed's battle against inflation—leaving tech giants untouched while regular Americans foot the bill. Why Higher Rates Might Miss Their Target When the Fed raises interest rates, borrowing becomes more expensive. Businesses postpone expansion, consumers delay purchases, and homebuyers retreat from the market. Slower spending eventually reduces inflation. But AI investment doesn’t follow the usual rules.

Microsoft (NASDAQ:MSFT | MSFT Price Prediction), Alphabet (NASDAQ:GOOGL), and Amazon (NASDAQ:AMZN) generate billions in operating cash flow, giving them financing flexibility unavailable to smaller competitors.

Alphabet, for example, generates more than $100 billion annually in operating cash flow, according to its financial reporting. Although the company has increasingly turned to debt to finance its AI expansion, it can absorb higher financing costs more easily than a business dependent on bank loans.

ADP Chief Economist Nela Richardson told Reuters that small businesses, indebted consumers, and housing could bear the burden of additional tightening.

Consider a $400,000 mortgage. Raising its rate from 6% to 7% increases monthly principal and interest payments by approximately $260. For a hyperscaler committing $200 billion to AI infrastructure, another quarter-point rate hike might barely register. For a family buying its first home, that extra cost could end the conversation.

The AI Winners and Losers Could Change Higher interest rates would also expose growing divisions within the AI industry itself. Cash-generating hyperscalers have one advantage. Debt-dependent infrastructure providers have another problem entirely.

CoreWeave (NASDAQ:CRWV), for example, reported approximately $35 billion in debt and $640 million in quarterly interest expenses earlier this year. Its dependence on external financing makes its expanding debt burden a risk that investors cannot ignore.

Conversely, homebuilders such as D.R. Horton (NYSE:DHI) face pressure when mortgage rates discourage buyers, while smaller retailers and manufacturers face rising financing costs without benefiting directly from AI investment.

Key Takeaway The AI boom isn’t necessarily bad for the economy. Its productivity benefits could eventually help reduce inflation. But those gains may arrive years after the bills come due.

Investors should favor companies capable of financing growth through operating cash flow while approaching leveraged AI infrastructure stocks and interest-rate-sensitive businesses more cautiously.

The biggest risk isn’t that the AI boom ends. It’s that keeping it going makes everything else more expensive.

Contact [email protected] for any questions or corrections.

Jupiter Topco LLC purchased a new position in Microsoft Corporation (NASDAQ: MSFT) in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 18,575,933 shares of the software giant's stock, valued at approximately $6,928,664,000. Microsoft makes up 2.8% of

First Bancorp Inc ME bought a new stake in Microsoft Corporation (NASDAQ: MSFT) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund bought 9,251 shares of the software giant's stock, valued at approximately $3,451,000. Microsoft accounts for approximately 1.4%

Stanley Capital Management LLC purchased a new position in Microsoft Corporation (NASDAQ: MSFT) in the undefined quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund purchased 14,695 shares of the software giant's stock, valued at approximately $5,482,000. Several other hedge funds have

Primecap Management Co. CA bought a new position in shares of Microsoft Corporation (NASDAQ: MSFT) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm bought 7,140,870 shares of the software giant's stock, valued at approximately $2,663,687,000. Microsoft accounts for 1.6%

Sonoma Private Wealth LLC acquired a new stake in Microsoft Corporation (NASDAQ: MSFT) in the undefined quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor acquired 22,313 shares of the software giant's stock, valued at approximately $8,323,000. Microsoft accounts for about 8.9% of

Headlands Technologies LLC lowered its position in Microsoft Corporation (NASDAQ: MSFT) by 76.0% in the undefined quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 17,028 shares of the software giant's stock after selling 53,850 shares during the quarter.

Freestone Grove Partners LP acquired a new stake in shares of Microsoft Corporation (NASDAQ: MSFT) during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund acquired 320,109 shares of the software giant's stock, valued at approximately $119,407,000. Microsoft makes up about 0.8% of Freestone Grove

EFG International AG purchased a new position in Microsoft Corporation (NASDAQ: MSFT) in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund purchased 555,410 shares of the software giant's stock, valued at approximately $207,258,000. Microsoft comprises about 3.8% of EFG International AG's

Gallagher Fiduciary Advisors LLC acquired a new position in shares of Microsoft Corporation (NASDAQ: MSFT) during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor acquired 5,170 shares of the software giant's stock, valued at approximately $1,928,000. Several other hedge funds

Councilmark Asset Management LLC acquired a new stake in Microsoft Corporation (NASDAQ:MSFT – Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 26,442 shares of the software giant’s stock, valued at approximately $9,863,000. Microsoft makes up about 5.2% of Councilmark Asset Management LLC’s portfolio, making the stock its 4th largest position.

Several other large investors also recently bought and sold shares of the stock. Auto Owners Insurance Co grew its stake in Microsoft by 56,160.8% during the 4th quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant’s stock worth $29,073,486,000 after buying an additional 60,009,531 shares during the last quarter. Legal & General Group Plc acquired a new position in Microsoft during the second quarter worth approximately $18,306,443,000. Jupiter Topco LLC purchased a new stake in Microsoft in the second quarter valued at approximately $6,928,664,000. Canada Pension Plan Investment Board purchased a new stake in Microsoft in the second quarter valued at approximately $5,653,812,000. Finally, The Manufacturers Life Insurance Company purchased a new stake in Microsoft in the second quarter valued at approximately $4,000,706,000. Institutional investors and hedge funds own 71.13% of the company’s stock.

Insider Activity In other Microsoft news, EVP Amy Hood sold 41,674 shares of the firm’s stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $498.27, for a total transaction of $20,764,903.98. Following the sale, the executive vice president directly owned 533,624 shares of the company’s stock, valued at $265,888,830.48. This trade represents a 7.24% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Takeshi Numoto sold 4,810 shares of Microsoft stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the sale, the executive vice president owned 42,677 shares of the company’s stock, valued at approximately $21,188,276.96. This trade represents a 10.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 150,314 shares of company stock valued at $75,404,992 in the last 90 days. Company insiders own 0.03% of the company’s stock.

Trending Headlines about Microsoft Here are the key news stories impacting Microsoft this week: Positive Sentiment: Microsoft received a bullish signal ahead of its Oct. 28 earnings report after Bernstein raised its price target to $662 and maintained an “Outperform” rating. Investors are watching Azure growth, commercial remaining performance obligations, and whether Microsoft’s more than $115 billion in recent capital spending is translating into AI revenue. Microsoft Given New Price Target at Sanford C. Bernstein Positive Sentiment: The company unveiled its Maia 300 AI accelerator and plans multi-gigawatt deployments beginning next year. The chip could reduce Microsoft’s reliance on Nvidia and lower inference costs, supporting the long-term economics of its AI infrastructure strategy. Microsoft’s New AI Chip Could Change the Economics of AI Positive Sentiment: Microsoft introduced security controls for enterprise AI agents and emphasized that frontier models can pose insider-threat-like risks. The initiative could strengthen demand for Microsoft’s security products as businesses adopt agentic AI. Microsoft Introduces Security Features for AI Agents Positive Sentiment: Analysts continue to view Microsoft as a broad way to monetize AI through Azure, Copilot, software subscriptions, and security. Expectations call for Azure growth of roughly 45%, though capacity constraints could limit near-term upside. Microsoft Earnings Preview Neutral Sentiment: Microsoft withdrew as anchor customer from Nscale’s planned U.K. AI data center, reportedly because of electricity-grid and power-supply delays. The decision highlights infrastructure constraints but may also reflect disciplined capital allocation; third-party operators could benefit if hyperscalers build less capacity themselves. Microsoft Pulls Out of U.K. Data Center Deal Negative Sentiment: Investors remain concerned that Microsoft’s aggressive AI capital expenditures could pressure free cash flow and margins if Azure monetization does not accelerate. One analyst also said Maia remains well behind Nvidia and Google’s custom chips, limiting its near-term competitive impact. Microsoft AI Bull Case and Valuation Risks Microsoft Trading Up 0.8% Shares of MSFT opened at $533.52 on Tuesday. Microsoft Corporation has a twelve month low of $349.20 and a twelve month high of $553.72. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07. The firm has a market capitalization of $3.96 trillion, a P/E ratio of 29.71, a PEG ratio of 1.70 and a beta of 1.10. The firm’s 50-day moving average is $506.08 and its two-hundred day moving average is $442.31.

Microsoft (NASDAQ:MSFT – Get Free Report) last announced its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.24 by $0.50. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The company had revenue of $90.01 billion during the quarter, compared to analysts’ expectations of $87.62 billion. During the same quarter in the previous year, the business posted $3.65 earnings per share. The firm’s quarterly revenue was up 17.7% compared to the same quarter last year. On average, research analysts predict that Microsoft Corporation will post 19.65 earnings per share for the current fiscal year.

Microsoft Increases Dividend The company also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be issued a $0.98 dividend. This is a positive change from Microsoft’s previous quarterly dividend of $0.91. The ex-dividend date is Thursday, November 19th. This represents a $3.92 dividend on an annualized basis and a yield of 0.7%. Microsoft’s payout ratio is currently 20.27%.

Analyst Upgrades and Downgrades Several research firms recently commented on MSFT. KeyCorp reiterated an “overweight” rating on shares of Microsoft in a research report on Thursday, September 3rd. Morgan Stanley downgraded shares of Microsoft from an “overweight” rating to a “negative” rating in a research report on Monday, October 5th. UBS Group lifted their price objective on shares of Microsoft from $525.00 to $675.00 and gave the company a “buy” rating in a research note on Thursday. BNP Paribas Exane lowered shares of Microsoft from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 5th. Finally, Piper Sandler upped their target price on shares of Microsoft from $550.00 to $610.00 and gave the company an “overweight” rating in a report on Wednesday, September 30th. Forty-three analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $590.30.

Get Our Latest Report on Microsoft

Microsoft Profile (Free Report)

Microsoft Corporation (NASDAQ:MSFT) is a global technology company that develops software, cloud services, devices and digital platforms. Its products and services are used by consumers, businesses, governments and educational institutions worldwide.

The company’s principal offerings include the Windows operating system; Microsoft 365 productivity applications such as Word, Excel, Teams and Outlook; Azure cloud computing and infrastructure services; Dynamics business applications; and enterprise security solutions.

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Microsoft on Monday introduced new security features designed to protect enterprises from the growing threat of AI agents. The launch comes at Microsoft continues to warn enterprises about the dangers of AI and agents.

Perhaps the most notable addition is Guardian Agents, a new feature intended to monitor the AI agents a company uses. Guardian Agents is part of Project Perception, a product introduced in June.

Project Perception was Microsoft’s answer to powerful hacking models like Anthropic’s Mythos and Fable and OpenAI’s security vulnerability scanning system Daybreak. Project Perception originally launched three classes of agents: a “red team” that acted like hackers and attacked, a “blue team” that detected the red team and assessed the vulnerabilities they found, and a “green team” tasked with fixing them.

The product was designed around the assumption that AI hackers would come from outside the company. But lately, Microsoft CEO Satya Nadella has been warning that the AI enemy may be the very agents enterprises have deployed and are paying for, much like a rogue human employee, otherwise known as an “insider threat.”

Earlier this month, in his private blog, Nadella warned that it’s time to stop trusting AI model providers, even if they offer assurances of safety and security with their agentic products. He wants enterprises to implement separate systems, not controlled by the AI labs, to watch and control the agents that those AI labs’ products launch.

“We are deploying these complex agentic systems and models, with access to our most sensitive data and giving them the ability to take mission-critical actions on our behalf!” he wrote. “We simply can’t outsource responsibility for what intelligence does on our behalf. A model provider’s assurances do not relieve us of that responsibility. … In other words, we need to separate the supply of intelligence from the authority over it.”

When announcing Guardian Agents, Microsoft’s security business chief Hayete Gallot was even more straightforward.

“Unfortunately, frontier models, regardless of their origin, cannot be trusted,” she wrote, adding that this isn’t because they are malicious or easily hacked, but because they are unpredictable. They have been trained to achieve tasks, not follow “organizational norms or judgment.”

On top of that, they are often given the keys to the kingdom, with access to data and tools that could do serious harm.

Microsoft’s solution is both surprising and self-serving. The surprising side is that Microsoft is famously close to OpenAI and Anthropic, having invested in both. OpenAI is also one of its biggest cloud customers, and Microsoft has its own AI lab developing models. So, Microsoft is sowing distrust against some of its own business interests.

The self-serving side is that Microsoft wants enterprises to buy agent security products from it, the cloud provider, rather than from Anthropic and OpenAI. But conflicting interests aside, its logic is sound. The software that monitors agent behavior should be separate from the suppliers of agents, just as auditors should be independent of the organizations they audit.

Or as Nadella puts it: “We need to separate the supply of intelligence from the authority over it.”

Microsoft is now seizing that business opportunity in a variety of ways. In addition to Guardian Agents, it has added an agent detection feature to its Microsoft Defender product that can find up to 60 types of agents that employees bring into the workplace, including Claude Code, Codex, and OpenClaw. It has also added features that limit agents’ access to data and systems, and dynamically adjust their agent permissions based on the task. That includes requiring human approval if an agent appears to be making risky decisions.

This idea of agents as untrustworthy insiders is taking hold across the broader industry, too.

Microsoft was an inaugural member of Nvidia’s new Open Agent Safety Platform, which garnered the support of more than 100 other tech companies. The platform isolates agents in secure environments and can monitor and stop behavior through hardware, functioning something like a kill switch. This follows Microsoft’s announcement of the new Surface Laptop Ultra PCs built for agents, which run on Nvidia chips and have agent security and controls baked in.

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Julie Bort is the Startups/Venture Desk editor for TechCrunch.

You can contact or verify outreach from Julie by emailing [email protected] or via @Julie188 on X.

Azure and AWS both accelerated last quarter, and Wall Street is now betting on which cloud giant can prove its record AI spending is turning into real revenue before the other one blinks.

Microsoft (NASDAQ:MSFT | MSFT Price Prediction) and Amazon (NASDAQ:AMZN) run the two biggest public clouds, and both clouds grew faster last quarter. Azure grew 43% in Microsoft’s fiscal fourth quarter. AWS grew 37%, its fastest pace in 18 quarters. Both report their September quarters soon, and Wall Street wants proof that record AI spending is still turning into revenue.

Copilot Drives Azure While Custom Chips Drive AWS
Microsoft’s growth came from software built on top of its own infrastructure. Microsoft 365 Copilot has passed 30 million paid seats. GitHub Copilot revenue grew over 60% quarter-over-quarter after Microsoft switched it to usage-based billing. That switch matters because customers now pay for how much they use, on top of a flat seat fee. Chief financial officer Amy Hood said efficiency gains get “quickly monetized in quarter” because demand still exceeds supply.

Amazon’s story was about chips. Its AI and chips businesses each passed $25 billion annualized run rates. 98% of its top 1,000 EC2 customers use its Graviton processors. Chief executive Andy Jassy sees “a real chance” that Amazon will sell its Trainium AI chips to data centers outside its own cloud. Retail helps too: advertising revenue rose 26%, giving Amazon a high-margin stream that offsets some of its heavy spending.

Q3 Scorecard
Microsoft
Amazon

Consensus EPS
$4.7234
$1.9560

Consensus revenue
$90.69 billion
$202.11 billion

Company revenue guidance
$89.85 billion to $90.95 billion
$197 billion to $202 billion

Cloud backlog
$678 billion commercial RPO
$496 billion AWS backlog

Huge Backlogs, Very Different Cash Stories
Microsoft’s commercial remaining performance obligations, or contracted future revenue, rose 84%. Without OpenAI, growth was 25%, a reminder of how much depends on one customer. Free cash flow fell 23.2% to $19.64 billion. Even so, management expects free cash flow to stay positive in fiscal 2027.

Amazon’s cash position is tighter. Free cash flow over the trailing 12 months was negative $7.6 billion after $54.21 billion of capital spending in a single quarter. Jassy cited timing and warned of “free cash flow headwinds until these data centers come online”. Amazon’s headline EPS of $5.75 also included a $53.4 billion one-time gain linked mostly to its Anthropic stake, so I discount that number.

Azure’s 45% Target Is Wall Street’s First Checkpoint
Analysts have been raising their estimates. Microsoft’s EPS consensus for the September quarter rose from $4.6232 three months ago to $4.7234, with 17 higher revisions in 30 days. Management guided Azure to roughly 45% growth in constant currency. Amazon is expected to report on October 29. The consensus revenue estimate sits above the top of Amazon’s own guidance, which sets a high bar. Prime Day moving into Q2 also makes the comparison harder. I will be watching whether AWS growth speeds up for a sixth straight quarter.

Microsoft’s Margin Edge Versus Amazon’s Upside Potential
Microsoft’s operating margin of 46.8% is far above Amazon’s 11.2%. Microsoft also trades at 29 times earnings, compared with 35 for Amazon. That gives Microsoft more room for error if AI pricing moderates. So far this year, Microsoft shares are up 10.09% and Amazon’s are up 8.31%. Amazon has bigger swings alongside more potential upside. Jassy believes AWS could eventually become “a trillion dollar annual revenue business”. My view would change if AWS keeps its 39% operating margin and Amazon’s free cash flow turns positive.

Contact [email protected] for any questions or corrections.

Skončí současný investiční boom zaměřený na umělou inteligenci podobně, jako investiční boom železnic? Podobné otázky si kladou některá média i investoři. Na konkrétnější úrovni přitom hovoříme o tom, jaká je a hlavně bude návratnost investovaného kapitálu. Dnes se z této perspektivy podíváme na hyperscalery, ale i železniční společnosti. Ona je totiž tak trochu otázka i to, jak vlastně „skončil“ onen železniční boom.

U železnic se obvykle pracuje s tím, že docházelo k mohutným investicím, které notně překročily v té době využitelné kapacity. Výsledkem bylo, že řada firem nepokryla svůj náklad kapitálu, nebo přímo zkrachovaly. Ale to samozřejmě není konec příběhu, jen jedné jeho kapitoly. Protože železniční společnosti fungují stále. Jak si vedou?

Union Pacific Corp dosahuje návratnost investovaného kapitálu ROIC mezi 15 – 17 %, což je evidentně vysoko nad návratností požadovanou. Jinak řečeno: To, co na jeden dolar investovaného kapitálu firmy vydělává, je mnohem víc, než co u něj investoři požadují. Norfolk Southern Corp je se svým ROIC u 10 %, což nemusí být výrazně nad požadovanou návratností. Ale nejde o žádný propadák. Canadian Pacific Kansas City Limited je u 6 – 7 %. Takže podle tohoto měřítka vydělává jen něco málo nad bezrizikové sazby. Tedy asi příliš málo.

V USA bylo vrcholu v železničním investičním boomu dosaženo někdy mezi lety 1870 – 1890, ale trval řadu desetiletí a vrcholy a euforii někdy rychle střídaly krachy a panika. Nyní po mnoha desetiletích vidíme, že obrázek je na straně návratnosti kapitálu vlastně stále dost pestrý. Jsou tu společnosti, které si na této (klíčové) rovině vedou hodně dobře. Ale i opaky. Není přitom třeba velké představivosti na vymyšlení scénáře a možností, kdy to s hypercalery, respektive řadou firem v AI byznysu, skončí podobně.

V následujícím grafu pak vidíme návratnost investovaného kapitálu hyperscalerů. Konkrétně to, co vydělají na provozním zisku mínus daně, děleno celkovým investovaným kapitálem – akciovým a dluhovým. Do roku 2022 se tento ROIC pohyboval mezi 30 – 40 %. Což je extrémně vysoké číslo. Jak jsem naznačil výše, pokud bychom mu měli dát tu správnou dimenzi, srovnali bychom jej s návratností požadovanou:

Jako orientační měřítko můžeme vzít požadovanou návratnost u celého trhu. Tedy více než 5 % bezrizikových sazeb a necelá 3 % rizikové prémie (podle odhadů Goldman Sachs). ROIC hyperscalerů je nyní něco nad 20 %. I kdyby jejich rizikovost byla něco nad trhem, stále je ROIC výrazně nad návratností požadovanou. Rizikovost hypercalerů a kvůli jejich podílu na celkové kapitalizaci tedy i rizikovost celého trhu je ale nyní kapitola sama o sobě.

Konec křivky míří dolů a pokud tomu tak bude i nadále, záleží na tom, kde se tento trend zastaví. Pokud nad požadovanou návratností, kapitál se stále „zaplatí“. Každopádně graf spíše podporuje teze o komoditizaci byznysu. A úplné změně podnikatelských modelů řady společností. Které byly ještě nedávno orientovány na vysoce zisková „měkká“ aktiva, ale rychle se z nich stávají méně ziskové (ROIC) firmy stojící na tvrdých/hmotných aktivech. A není překvapivé, že ROIC se u hypersclarů také dost liší: Třeba Microsoft jej má u 30 %, Oracle je u 12 %, Google je za poslední rok na 46 %.

Lakewood Capital Management LP bought a new stake in Microsoft Corporation (NASDAQ:MSFT – Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor bought 101,534 shares of the software giant’s stock, valued at approximately $37,874,000. Microsoft accounts for about 2.0% of Lakewood Capital Management LP’s portfolio, making the stock its 19th biggest position.

A number of other large investors have also recently made changes to their positions in the company. Legal & General Group Plc purchased a new position in Microsoft in the 2nd quarter worth about $18,306,443,000. The Manufacturers Life Insurance Company purchased a new stake in Microsoft in the 2nd quarter valued at about $4,000,706,000. Kelly Lawrence W & Associates Inc. CA purchased a new stake in Microsoft in the 2nd quarter valued at about $2,374,000. Sone Capital Management LLC bought a new position in Microsoft in the 2nd quarter worth about $30,533,000. Finally, Trajan Wealth LLC bought a new position in Microsoft in the 2nd quarter worth about $103,382,000. 71.13% of the stock is owned by hedge funds and other institutional investors.

More Microsoft News Here are the key news stories impacting Microsoft this week:

Positive Sentiment: Analysts expect Microsoft to remain the only major hyperscaler with positive free cash flow over the next year despite heavy AI investment. This reinforces confidence that the company can fund data-center expansion without substantial external financing. Microsoft Free Cash Flow Expected to Remain Positive Positive Sentiment: Microsoft signed a 20-year agreement with NiSource for approximately 1,100 megawatts of power for an Indiana data-center campus beginning in 2028. Securing electricity supports future Azure capacity as grid constraints become a bottleneck for AI expansion. Microsoft Signs Power Deal With NiSource Positive Sentiment: Microsoft’s custom Maia AI chips and reports that a new model achieved comparable or better performance than OpenAI’s system using a fraction of the computing power could eventually reduce reliance on expensive third-party GPUs and improve AI economics. Microsoft Wants to Make AI Cheaper Neutral Sentiment: Investors are focused on Azure growth, Copilot adoption, AI monetization and capital expenditures ahead of earnings. Strong demand could support the shares, but the market wants evidence that revenue growth is translating into sustainable margins. Negative Sentiment: The U.K. Competition and Markets Authority is investigating Microsoft’s grip on business software and says Microsoft and Amazon Web Services may need to do more to address cloud-service barriers. Potential remedies could increase compliance costs or weaken customer-lock-in advantages. UK Regulator Targets Microsoft’s Business Software Grip Negative Sentiment: Questions remain over whether custom chips will deliver meaningful savings: AI infrastructure, power and data-center commitments are rising rapidly, while Microsoft is reportedly seeking substantial cost reductions in Azure. That creates concern about near-term free-cash-flow and margin pressure. Wall Street Analyst Weigh In Several analysts have recently weighed in on MSFT shares. Citizens Jmp reaffirmed a “market outperform” rating and set a $550.00 price target on shares of Microsoft in a research note on Tuesday, September 15th. Guggenheim reissued a “buy” rating and issued a $586.00 price objective on shares of Microsoft in a research note on Monday, July 27th. Wolfe Research cut Microsoft from an “outperform” rating to a “hold” rating in a research note on Wednesday, September 23rd. KeyCorp restated an “overweight” rating on shares of Microsoft in a report on Thursday, September 3rd. Finally, Melius Research set a $665.00 target price on Microsoft and gave the company a “buy” rating in a research report on Monday, October 5th. Forty-two research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, Microsoft currently has a consensus rating of “Moderate Buy” and an average target price of $589.71. Check Out Our Latest Analysis on Microsoft

Microsoft Stock Performance MSFT stock opened at $529.05 on Monday. The firm has a market cap of $3.93 trillion, a price-to-earnings ratio of 29.46, a PEG ratio of 1.70 and a beta of 1.10. The firm has a 50-day simple moving average of $505.53 and a two-hundred day simple moving average of $441.16. Microsoft Corporation has a one year low of $349.20 and a one year high of $553.72. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23.

Microsoft (NASDAQ:MSFT – Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, beating analysts’ consensus estimates of $4.24 by $0.50. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The business had revenue of $90.01 billion for the quarter, compared to analysts’ expectations of $87.62 billion. During the same period last year, the business earned $3.65 EPS. The company’s revenue was up 17.7% compared to the same quarter last year. On average, equities analysts forecast that Microsoft Corporation will post 19.65 EPS for the current fiscal year.

Microsoft Increases Dividend The company also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be issued a $0.98 dividend. This is an increase from Microsoft’s previous quarterly dividend of $0.91. This represents a $3.92 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend is Thursday, November 19th. Microsoft’s dividend payout ratio is presently 20.27%.

Insider Activity In other Microsoft news, EVP Amy Hood sold 41,674 shares of the firm’s stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $498.27, for a total value of $20,764,903.98. Following the completion of the sale, the executive vice president owned 533,624 shares of the company’s stock, valued at approximately $265,888,830.48. This trade represents a 7.24% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Judson Althoff sold 10,000 shares of the firm’s stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total value of $4,878,900.00. Following the completion of the sale, the chief executive officer directly owned 100,447 shares of the company’s stock, valued at approximately $49,007,086.83. This represents a 9.05% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 150,314 shares of company stock valued at $75,404,992 over the last three months. Company insiders own 0.03% of the company’s stock.

Microsoft Company Profile (Free Report)

Microsoft Corporation (NASDAQ:MSFT) is a global technology company that develops software, cloud services, devices and digital platforms. Its products and services are used by consumers, businesses, governments and educational institutions worldwide.

The company’s principal offerings include the Windows operating system; Microsoft 365 productivity applications such as Word, Excel, Teams and Outlook; Azure cloud computing and infrastructure services; Dynamics business applications; and enterprise security solutions.

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HMI Capital Management L.P. bought a new stake in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm bought 165,300 shares of the software giant’s stock, valued at approximately $61,660,000. Microsoft comprises about 8.7% of HMI Capital Management L.P.’s investment portfolio, making the stock its 5th biggest holding.

A number of other hedge funds also recently made changes to their positions in the business. Empirical Financial Services LLC d.b.a. Empirical Wealth Management lifted its stake in Microsoft by 4.0% in the second quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 229,490 shares of the software giant’s stock valued at $85,604,000 after purchasing an additional 8,773 shares during the last quarter. D.B. Root & Company LLC purchased a new stake in Microsoft in the second quarter worth $3,652,000. Markel Group Inc. increased its position in Microsoft by 0.4% in the first quarter. Markel Group Inc. now owns 537,630 shares of the software giant’s stock worth $199,014,000 after buying an additional 1,950 shares during the last quarter. Bessemer Group Inc. increased its position in Microsoft by 8.4% in the first quarter. Bessemer Group Inc. now owns 6,921,677 shares of the software giant’s stock worth $2,562,197,000 after buying an additional 537,634 shares during the last quarter. Finally, Taylor Securities Services Inc. bought a new stake in shares of Microsoft in the fourth quarter valued at $2,616,000. 71.13% of the stock is currently owned by institutional investors.

Insider Buying and Selling In other news, CEO Satya Nadella sold 86,525 shares of the firm’s stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total value of $43,388,826.50. Following the completion of the transaction, the chief executive officer directly owned 486,763 shares in the company, valued at approximately $244,092,173.98. This trade represents a 15.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Amy Hood sold 41,674 shares of the firm’s stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $498.27, for a total transaction of $20,764,903.98. Following the completion of the transaction, the executive vice president owned 533,624 shares of the company’s stock, valued at $265,888,830.48. This trade represents a 7.24% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 150,314 shares of company stock worth $75,404,992 over the last quarter. 0.03% of the stock is owned by corporate insiders.

Microsoft Price Performance Shares of NASDAQ MSFT opened at $529.05 on Monday. The stock has a market cap of $3.93 trillion, a PE ratio of 29.46, a price-to-earnings-growth ratio of 1.70 and a beta of 1.10. Microsoft Corporation has a fifty-two week low of $349.20 and a fifty-two week high of $553.72. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. The stock has a fifty day moving average of $505.53 and a 200-day moving average of $441.16. Microsoft (NASDAQ:MSFT – Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.24 by $0.50. The company had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%. The firm’s revenue for the quarter was up 17.7% compared to the same quarter last year. During the same period in the previous year, the company posted $3.65 EPS. Equities research analysts anticipate that Microsoft Corporation will post 19.65 earnings per share for the current year.

Microsoft Increases Dividend The business also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be issued a dividend of $0.98 per share. This represents a $3.92 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend is Thursday, November 19th. This is a boost from Microsoft’s previous quarterly dividend of $0.91. Microsoft’s payout ratio is presently 20.27%.

Analyst Ratings Changes A number of brokerages have recently commented on MSFT. Scotiabank upped their price target on Microsoft from $510.00 to $615.00 and gave the company an “outperform” rating in a research report on Monday, October 5th. CLSA reiterated an “outperform” rating on shares of Microsoft in a research note on Thursday, July 30th. Jefferies Financial Group boosted their price objective on Microsoft from $575.00 to $650.00 and gave the company a “buy” rating in a research note on Wednesday. Barclays upped their price objective on shares of Microsoft from $512.00 to $600.00 and gave the company an “overweight” rating in a report on Tuesday, October 13th. Finally, KeyCorp reiterated an “overweight” rating on shares of Microsoft in a research report on Thursday, September 3rd. Forty-two equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $589.71.

Check Out Our Latest Stock Analysis on MSFT

Microsoft News Summary Here are the key news stories impacting Microsoft this week:

Positive Sentiment: Analysts expect Microsoft to remain the only major hyperscaler with positive free cash flow over the next year despite heavy AI investment. This reinforces confidence that the company can fund data-center expansion without substantial external financing. Microsoft Free Cash Flow Expected to Remain Positive Positive Sentiment: Microsoft signed a 20-year agreement with NiSource for approximately 1,100 megawatts of power for an Indiana data-center campus beginning in 2028. Securing electricity supports future Azure capacity as grid constraints become a bottleneck for AI expansion. Microsoft Signs Power Deal With NiSource Positive Sentiment: Microsoft’s custom Maia AI chips and reports that a new model achieved comparable or better performance than OpenAI’s system using a fraction of the computing power could eventually reduce reliance on expensive third-party GPUs and improve AI economics. Microsoft Wants to Make AI Cheaper Neutral Sentiment: Investors are focused on Azure growth, Copilot adoption, AI monetization and capital expenditures ahead of earnings. Strong demand could support the shares, but the market wants evidence that revenue growth is translating into sustainable margins. Negative Sentiment: The U.K. Competition and Markets Authority is investigating Microsoft’s grip on business software and says Microsoft and Amazon Web Services may need to do more to address cloud-service barriers. Potential remedies could increase compliance costs or weaken customer-lock-in advantages. UK Regulator Targets Microsoft’s Business Software Grip Negative Sentiment: Questions remain over whether custom chips will deliver meaningful savings: AI infrastructure, power and data-center commitments are rising rapidly, while Microsoft is reportedly seeking substantial cost reductions in Azure. That creates concern about near-term free-cash-flow and margin pressure. About Microsoft (Free Report)

Microsoft Corporation (NASDAQ:MSFT) is a global technology company that develops software, cloud services, devices and digital platforms. Its products and services are used by consumers, businesses, governments and educational institutions worldwide.

The company’s principal offerings include the Windows operating system; Microsoft 365 productivity applications such as Word, Excel, Teams and Outlook; Azure cloud computing and infrastructure services; Dynamics business applications; and enterprise security solutions.

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Microsoft just spent over $115 billion on capital expenditures, and now everything hinges on whether that bet pays off fast enough to justify the price tag.