Track market-moving stories before they get noisy

Jed Ellerbroek discusses the market's digestion of strong second-quarter gains, the impact of U.S.-Iran tensions on oil prices, and what's ahead for cyclical stocks. He highlights upcoming earnings from Alphabet (GOOGL), Amazon (AMZN), Meta Platforms (META) and Microsoft (MSFT).

Microsoft Today

$385.10 +0.74 (+0.19%)

As of 07/10/2026 04:00 PM Eastern

52-Week Range$349.20▼

$555.45Dividend Yield0.95%

P/E Ratio22.92

Price Target$559.84

Microsoft Corp. NASDAQ: MSFT has taken steps to lessen its reliance on frontier AI models, though it's not an outright declaration of protest. In June, the tech giant launched its own proprietary AI models (Microsoft AI or MAI) across select applications in its Office suite.

What this means for the user experience is an open question, but this is a clear margin play for Microsoft. The company competes in multiple areas of the AI infrastructure buildout. In a way that makes this move about controlling the controllables.

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Instead of experiencing death by a thousand cuts from OpenAI and Anthropic (i.e., the frontier models), Microsoft is trying to widen its existing moat and deliver strong returns on investment (ROI) from its AI spend. But will this be sufficient to alter the sentiment towards MSFT, which has declined approximately 20% year-to-date?

Microsoft Expands MAI to Reduce Reliance on OpenAIHere's the news behind the news. Bloomberg reported that Microsoft is quietly routing some Excel and Outlook prompts to MAI, its in-house model family, rather than to OpenAI or Anthropic. Tens of thousands of prompts a week are already running on Microsoft's own tech.

That's still a small slice of total Copilot traffic. OpenAI and Anthropic handle most of it today. But the direction of that travel matters more than the current split, and Microsoft has made its intentions clear.

At Build 2026 in June, Microsoft unveiled seven MAI models, including its first reasoning model, MAI-Thinking-1. The company says it matches Anthropic's Claude Opus 4.6 on coding tasks. AI chief Mustafa Suleyman put it bluntly: "We pay a lot of money to Anthropic, so our goal is to reduce and ultimately eliminate that cost."

How Microsoft's In-House AI Could Boost Profit MarginsFor investors, an easy way to think about this is as follows. Copilot is a $30-per-seat subscription that, prior to the MAI launch, was running on top of someone else's expensive AI model by default. Every prompt costs Microsoft money to process, and multiplied across hundreds of millions of Office users, that bill adds up fast.

Owning the model instead of renting it changes the equation entirely. Microsoft doesn't need MAI to win over every customer. It just needs MAI to be good enough for everyday spreadsheet formulas and email drafts, at a fraction of the cost.

That's the ROI story. Microsoft won’t win an AI arms race on raw intelligence. But it can compete more efficiently by converting a rented cost center into owned infrastructure.

Microsoft Uses MAI to Strengthen Its AI Competitive MoatMicrosoft chief executive officer (CEO) Satya Nadella has reportedly said he feared Microsoft becoming "the next IBM.” By that, he meant a company that let someone else own the most important layer of technology. MAI is Microsoft's answer to that fear.

Instead of a single point of AI dependency, Microsoft now runs a three-way hedge. It holds a stake in OpenAI, embeds Anthropic's Claude in Copilot, and increasingly leans on its own models where the economics make sense. That flexibility is arguably a bigger moat than any one model's benchmark score.

It also insulates Microsoft from a ticking clock. Microsoft's current discounted OpenAI pricing won't last forever, and that deal isn't set to expire until 2032. Building a credible in-house alternative now gives Microsoft leverage in any future renegotiation, rather than leaving it stuck paying whatever OpenAI or Anthropic decides to charge.

The Bear Case: Risks to Microsoft's AI StrategyBefore getting too bullish, a few caveats are worth weighing. This shift is still incremental, and Microsoft hasn't published any timeline for expanding it further. Most Copilot workloads still run on outside models today.

There's also a quality question. Microsoft's own materials frame MAI as matching prior-generation Anthropic models, not necessarily the current large language models (LLMs). If MAI-powered features feel noticeably worse, customer goodwill could take a hit that outweighs the cost savings.

What It Means for OpenAI and AnthropicThis is a warning shot worth watching. Anthropic filed confidentially for an IPO in June, and OpenAI is reportedly preparing a similar filing. Their biggest enterprise distribution partner is now also a competitor, building cheaper in-house alternatives.

That doesn't mean OpenAI or Anthropic are in immediate trouble. Both still handle the bulk of Copilot's AI traffic, and Microsoft has made it clear that it isn't ending either partnership. But the "picks and shovels" trade just got a little more complicated for anyone betting purely on third-party AI labs staying indispensable.

Microsoft Stock Rebounds After Hitting a 52-Week LowMicrosoft hit a 52-week low in late June. The 10% bounce off that level isn’t a sign that everything is perfect, but it does suggest that investors are leaning into the stock’s value proposition.

At around 22x forward earnings, Microsoft is trading at a discount to the S&P 500 and to its own history. An argument could be made that MSFT wasn’t overvalued when the sell-off began in November, and there’s ample reason to believe it’s undervalued now. The relative strength indicator reached oversold territory when MSFT bottomed in June.

But a larger story comes from analysts and institutions. The MSFT consensus price target of $559.84 is approximately 45% below its recent trading range. Plus, out of 48 analysts tracked by MarketBeat, 41 give MSFT a Buy rating, and seven rate it as a Hold. Analysts notoriously don’t like to be wrong, which may explain why some analysts have trimmed their price targets, but the overall sentiment remains bullish.

The same cautious optimism can be found in its institutional ownership. There's no question that buying has slowed in the first two quarters of the year. But buying still outpaces selling, and with MSFT at 22x earnings, this could be an attractive target for money that hasn’t left the market and is looking for growth in the second half.

Should You Invest $1,000 in Microsoft Right Now?Before you consider Microsoft, you'll want to hear this.

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Robotics and automation are rapidly becoming essential infrastructure across healthcare, manufacturing, logistics, and many other industries.

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Microsoft (NASDAQ: MSFT) is the best Magnificent Seven dividend stock to buy in 2026, according to an analysis generated by ChatGPT.

by Todd Bishop on Jul 11, 2026 at 9:19 amJuly 11, 2026 at 11:11 am

Scenes from this week’s founder open house on the deck at GeekWire HQ in Seattle, where we also recorded this week’s podcast. Thanks to Delta Air Lines, Prime Team Partners, WTIA and ALLtech for sponsoring the event. (Photos by Kurt Schlosser and John Cook) On this week’s show, we’re on the GeekWire deck for our annual founder open house, where we dig into Microsoft’s latest round of layoffs — including a major Xbox shakeup — and the surprising rise of hardware companies on the GeekWire 200.

Then we sit down with four guests to talk about how AI is reshaping how they build: 

Jana Schuster of StackIQ, whose AI-native platform helps companies find redundancy in their software spending — like Rocket Money, but for business — with a small team. Blake Resnick and David Benowitz of Brinc Drones, whose mechanical engineers are now vibe coding their own prototypes; Boaz Ashkenazy of Shift AI, who’s setting up always-on agents and rethinking how we interact with AI tools. Finally, this week’s GeekWire Trivia Challenge: how a longtime T-Mobile executive got his start in the wireless business, and the star-studded history of T-Mobile celebrity endorsers.

Stories mentioned:

Microsoft cuts 4,800 jobs, about 2% globally, revamps salesforce and launches massive Xbox overhaul GeekWire 200 update: New unicorns and a hardware surge remake our list of top Pacific NW startups Former GitHub CEO’s startup Entire unveils its answer to the crush of AI coding agents Chicago software company plants flag in Seattle area as new leadership team seeks AI talent T-Mobile exec Mike Katz exits after 28 years, as carrier reshuffles top ranks and taps ex-AT&T leader Audio editing by Curt Milton.

Previous StoryElon Musk’s Mars illusion Microsoft cuts 4,800 jobs, about 2% globally, revamps salesforce and launches massive Xbox overhaul

Supply chain startup Auger, led by ex-Amazon operations chief, raises $50M and lands big customers

Xbox at a crossroads: 25 years later, Microsoft is done playing around

Opinion: The WALL-E Economy

, /PRNewswire/ --

Why: Rosen Law Firm, a global investor rights law firm, reminds purchasers of common stock of Microsoft Corporation (NASDAQ: MSFT) between May 1, 2025 and January 28, 2026, inclusive (the "Class Period"), of the important August 11, 2026 lead plaintiff deadline.

So What: If you purchased Microsoft common stock during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.

What to do next: To join the Microsoft class action, go to https://rosenlegal.com/cases/microsoft-corporation/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than August 11, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.

Why Rosen Law: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually handle securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered billions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers.

Details of the case: According to the lawsuit, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) Microsoft's Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems; (2) Microsoft's flagship proprietary AI model ranked well below competitors on a number of benchmark tests; (3) Microsoft needed to increase by billions of dollars its capital expenditures and divert graphics processing unit ("GPU") and central processing unit ("CPU") capacity away from fulfilling demand for its profitable Azure services in order to improve the competitive positioning of its critical Copilot family of products and increase its AI-related research and development ("R&D"); and (4) as a result, Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and Microsoft's Copilot offerings had lost market share to rival products, a trend that was increasing. When the true details entered the market, the lawsuit claims that investors suffered damages. 

To join the Microsoft class action, go to https://rosenlegal.com/cases/microsoft-corporation/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.

No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.

Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm/.

Attorney Advertising. Prior results do not guarantee a similar outcome.

Contact Information:

     Laurence Rosen, Esq.
     Phillip Kim, Esq.
     The Rosen Law Firm, P.A.
     275 Madison Avenue, 40th Floor
     New York, NY 10016
     Tel: (212) 686-1060
     Toll Free: (866) 767-3653
     Fax: (212) 202-3827
     [email protected]
     www.rosenlegal.com

SOURCE THE ROSEN LAW FIRM, P. A.

, /PRNewswire/ -- The Law Offices of Frank R. Cruz announces that investors with losses related to Microsoft Corporation ("Microsoft" or the "Company") (NASDAQ: MSFT) have opportunity to lead the securities fraud class action lawsuit.

IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN MICROSOFT CORPORATION (MSFT), CLICK HERE BEFORE AUGUST 11, 2026 (THE LEAD PLAINTIFF DEADLINE) TO PARTICIPATE IN THE ONGOING SECURITIES FRAUD LAWSUIT.

 What Is The Lawsuit About?
The complaint filed alleges that, between May 1, 2025 and January 28, 2026, Defendants failed to disclose to investors: (1) that Microsoft's Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems; (2) that Microsoft's flagship proprietary AI model ranked well below competitors on a number of benchmark tests; (3) that Microsoft needed to increase by billions of dollars its capital expenditures and divert GPU and CPU capacity away from fulfilling demand for its profitable Azure services in order to improve the competitive positioning of its critical Copilot family of products and increase its AI-related R&D; (4) that, as a result of the foregoing, Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and the Company's Copilot offerings had lost market share to rival products, a trend that was increasing; and (5) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

Contact Us To Participate or Learn More:

If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us.
The Law Offices of Frank R. Cruz, 
Email us at: [email protected]
Call us at: 310-914-5007
Visit our website at: www.frankcruzlaw.com
Follow us for updates on Twitter: twitter.com/FRC_LAW.

If you inquire by email, please include your mailing address, telephone number, and number of shares purchased.

To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

SOURCE The Law Offices of Frank R. Cruz, Los Angeles

NEW YORK, July 10, 2026 (GLOBE NEWSWIRE) --

WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of common stock of Microsoft Corporation (NASDAQ: MSFT) between May 1, 2025 and January 28, 2026, inclusive (the “Class Period”), of the important August 11, 2026 lead plaintiff deadline.

SO WHAT: If you purchased Microsoft common stock during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.

WHAT TO DO NEXT: To join the Microsoft class action, go to https://rosenlegal.com/cases/microsoft-corporation/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than August 11, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.

WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually handle securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered billions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs’ Bar. Many of the firm’s attorneys have been recognized by Lawdragon and Super Lawyers.

DETAILS OF THE CASE: According to the lawsuit, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) Microsoft’s Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems; (2) Microsoft’s flagship proprietary AI model ranked well below competitors on a number of benchmark tests; (3) Microsoft needed to increase by billions of dollars its capital expenditures and divert graphics processing unit (“GPU”) and central processing unit (“CPU”) capacity away from fulfilling demand for its profitable Azure services in order to improve the competitive positioning of its critical Copilot family of products and increase its AI-related research and development (“R&D”); and (4) as a result, Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and Microsoft’s Copilot offerings had lost market share to rival products, a trend that was increasing. When the true details entered the market, the lawsuit claims that investors suffered damages.

To join the Microsoft class action, go to https://rosenlegal.com/cases/microsoft-corporation/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.

No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.

Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm/.

Attorney Advertising. Prior results do not guarantee a similar outcome.

-------------------------------

Contact Information:

        Laurence Rosen, Esq.
        Phillip Kim, Esq.
        The Rosen Law Firm, P.A.
        275 Madison Avenue, 40th Floor
        New York, NY 10016
        Tel: (212) 686-1060
        Toll Free: (866) 767-3653
        Fax: (212) 202-3827
        [email protected]
        www.rosenlegal.com

NEW YORK, July 10, 2026 (GLOBE NEWSWIRE) -- The Gross Law Firm issues the following notice to shareholders of Microsoft Corporation (NASDAQ: MSFT).

Shareholders who purchased shares of MSFT during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery.

CONTACT US HERE:

https://securitiesclasslaw.com/securities/microsoft-corporation-loss-submission-form/?id=192872&from=3

CLASS PERIOD: May 1, 2025 to January 28, 2026

ALLEGATIONS: The complaint alleges that during the class period, Defendants issued materially false and/or misleading statements and/or failed to disclose that: (a) Microsoft’s Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems; (b) Microsoft’s flagship proprietary AI model ranked well below competitors on a number of benchmark tests; (c) Microsoft needed to increase by billions of dollars its capital expenditures and divert GPU and CPU capacity away from fulfilling demand for its profitable Azure services in order to improve the competitive positioning of its critical Copilot family of products and increase its AI-related R&D; and (d) as a result of (a)-(c) above, Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and the Company’s Copilot offerings had lost market share to rival products, a trend that was increasing.

DEADLINE: August 11, 2026 Shareholders should not delay in registering for this class action. Register your information here: https://securitiesclasslaw.com/securities/microsoft-corporation-loss-submission-form/?id=192872&from=3

NEXT STEPS FOR SHAREHOLDERS: Once you register as a shareholder who purchased shares of MSFT during the timeframe listed above, you will be enrolled in a portfolio monitoring software to provide you with status updates throughout the lifecycle of the case. The deadline to seek to be a lead plaintiff is August 11, 2026. There is no cost or obligation to you to participate in this case.

WHY GROSS LAW FIRM? The Gross Law Firm is a nationally recognized class action law firm, and our mission is to protect the rights of all investors who have suffered as a result of deceit, fraud, and illegal business practices. The Gross Law Firm is committed to ensuring that companies adhere to responsible business practices and engage in good corporate citizenship. The firm seeks recovery on behalf of investors who incurred losses when false and/or misleading statements or the omission of material information by a company lead to artificial inflation of the company's stock. Attorney advertising. Prior results do not guarantee similar outcomes.

CONTACT:
The Gross Law Firm
15 West 38th Street, 12th floor
New York, NY, 10018
Email: [email protected]
Phone: (646) 453-8903

Three days after announcing the largest mass layoff in the video game industry this year, Xbox CEO Asha Sharma got a new title: co-lead of the Federal Reserve’s task force on Productivity and Jobs. Sharma announced 3,200 job cuts across Microsoft’s gaming division on July 6, 2026. The Fed named her to the task force on July 9. She is the only sitting CEO named to any of the Fed’s five new external task forces, and will help shape how the central bank thinks about artificial intelligence and employment for the next decade.

The Appointment Fed Chairman Kevin Warsh, in the job less than two months unveiled five external advisory groups covering Productivity and Jobs, Inflation Frameworks, Communications, Balance Sheet, and Data. Sharma’s group is charged with “assessing the economic impact of new general-purpose technologies, including artificial intelligence, to inform the Federal Reserve’s policy judgments,” with recommendations due by year end.

Her co-members carry weight. Marc Andreessen, co-founder of Andreessen Horowitz, joins after being named to the US Defense Policy Board in late June. Charles I. Jones, a Stanford economist currently on leave at Anthropic, brings frontier-lab exposure. Elsewhere on the rosters sit former Walmart CEO Doug McMillon, former Bank of England Governor Mervyn King, former Fed Governor Jeremy Stein, Harvard’s Greg Mankiw, and Nobel laureate Thomas Sargent. Warsh framed the effort plainly: “The U.S. economy has changed significantly over the last generation, and never more so than right now.”

The Layoffs She’s Bringing to the Table Sharma, appointed Xbox CEO earlier in 2026 after running Microsoft’s CoreAI product division, was the first Xbox chief to arrive from an AI background rather than gaming. Her July 6 memo cut deep. ZeniMax Online (maker of The Elder Scrolls Online) lost hundreds of jobs; Id Software (Doom) shed roughly 100. Double Fine, Ninja Theory, Undead Labs, and Compulsion Games are being parted ways with, some returning to independent status. The cuts sit on top of roughly 8,000 company-wide layoffs Microsoft announced in May 2026, and they are part of Microsoft’s restructuring of gaming around AI-driven game development.

The optics are unavoidable. The executive advising the Fed on how AI reshapes employment at Microsoft (NASDAQ:MSFT | MSFT Price Prediction) is executing that reshaping in real time. Her expertise is genuine. The timing has drawn attention.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Microsoft didn't make the cut. Grab the names FREE today.

The Monetary Policy Payoff Look past the gaming-industry story and this signals interest rates. The Warsh Fed is elevating AI’s impact on jobs and productivity from background variable to central policy input. The stakes cut both ways: if AI proves deflationary by replacing labor and compressing wage growth, the Fed can cut sooner and hold rates lower; if AI proves inflationary through energy demand, reshoring, and a capex boom, the opposite.

The market currently sides with the inflationary case. Polymarket traders assign a 78.45% probability of zero Fed rate cuts in 2026, with the fed funds rate holding at 3.75% since December 10, 2025 and core PCE inflation sitting at the 90.9th percentile of its 12-month range. The labor market backdrop remains stable: unemployment at 4.2% in June, initial claims at 215,000, and 7.59M job openings in May.

That backdrop makes the task force’s conclusion consequential. A Fed finding that formally endorses AI as deflationary would be bullish for rate-sensitive sectors and could pull forward the cutting cycle. For Microsoft, Sharma’s employer, that conclusion would validate the Copilot investment thesis at the source. Watch for the year-end report. The Xbox CEO who cut 3,200 jobs this week will help write it.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Microsoft didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

Item 1 of 2 A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, March 25, 2024. REUTERS/Gonzalo Fuentes/File Photo

[1/2]A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, March 25, 2024. REUTERS/Gonzalo Fuentes/File Photo Purchase Licensing Rights, opens new tab

CompaniesLONDON, July 10 (Reuters) - Britain has designated cloud service providers Microsoft (MSFT.O), opens new tab, ​Google (GOOGL.O), opens new tab, Amazon (AMZN.O), opens new tab and Oracle (ORCL.N), opens new tab as critical third-party suppliers ‌to its financial sector, bringing them under direct regulatory oversight.

The move is aimed at strengthening the resilience of financial firms by ​reducing the risk of widespread disruption from cyber ​attacks or technology outages.

Get a daily digest of breaking business news straight to your inbox with the Reuters Business newsletter. Sign up here.

"As banks, insurers and financial ⁠market infrastructures become increasingly reliant on cloud services, ​disruption at a major supplier could affect multiple firms at ​the same time, potentially impacting services customers depend on," the government said in a statement on Friday.

The government designated Microsoft Ireland Operations ​Ltd, Google Cloud EMEA Ltd, Amazon Web Services ​EMEA SARL, and Oracle Corporation UK Ltd as critical third parties, effective ‌July ⁠13.

The firms will be supervised jointly by the Bank of England, the Prudential Regulation Authority and the Financial Conduct Authority. They will be required to undergo resilience ​testing, conduct regular ​self-assessments and ⁠report major incidents.

Britain's approach contrasts with that of the European Union, which in November designated ​19 technology and services firms under a similar ​framework.

A ⁠Google Cloud spokesperson said: "With effective implementation and meaningful industry engagement, this new Critical Third Party framework can enhance the ⁠long-term resilience ​of the UK's financial ecosystem ​and increase understanding, transparency, and trust between all parties."

Reporting by Phoebe Seers ​and Muvija M. Editing by William James and Mark Potter

Our Standards: The Thomson Reuters Trust Principles., opens new tab

, /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Microsoft Corporation ("Microsoft" or the "Company") (NASDAQ: MSFT). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased. 

The class action concerns whether Microsoft and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

You have until August 11, 2026, to ask the Court to appoint you as Lead Plaintiff for the class if you purchased or otherwise acquired Microsoft securities during the Class Period. A copy of the Complaint can be obtained at www.pomerantzlaw.com.

[Click here for information about joining the class action]

On January 28, 2026, Microsoft announced disappointing results for its fiscal second quarter ended December 31, 2025. First, during the quarter Microsoft's Azure growth had slowed suddenly and fallen below analyst expectations. During the related earnings call, CFO Amy E. Hood revealed that the slower Azure growth was primarily due to computational capacity constraints, as Microsoft had diverted CPU and GPU capacity to Copilot applications and AI-related R&D. Second, Microsoft revealed that its capital expenditures had increased to $37.5 billion during the quarter, causing Microsoft's capital expenditures for the first six months of its fiscal 2026 to increase to $72.4 billion compared to $88.2 billion for all of Microsoft's fiscal 2025. Third, Microsoft revealed, for the first time, that the number of paid Microsoft 365 Copilot seats totaled only 15 million to date, materially below analyst estimates and a fraction of the more than 450 million commercial Microsoft 365 users. 

On this news, the price of Microsoft stock fell nearly 10%.

Then, on February 3, 2026, The Wall Street Journal revealed, in an article titled "Microsoft's Pivotal AI Product Is Running Into Big Problems," that severe challenges and functionality issues had plagued Microsoft's Copilot offerings, leading to Copilot losing market share during the Class Period to competing products such as Google's Gemini. The price of Microsoft stock continued to fall in the days after Microsoft's second quarter 2026 earnings announcement as the market continued to digest the adverse news and sources such as The Wall Street Journal revealed new adverse information.

Thereafter, on March 17, 2026, The Wall Street Journal revealed in an article titled "Microsoft Seeks More Coherence in AI Efforts With Copilot Reorganization" that Microsoft was reorganizing its Copilot product teams to unify commercial and consumer versions partly in response to the challenges revealed by The Wall Street Journal's prior reporting on Copilot's problem-plagued development and disappointing customer adoption. 

On this news, the price of Microsoft stock continued to fall.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com. 

Attorney advertising. Prior results do not guarantee similar outcomes.  

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980 

SOURCE Pomerantz LLP

Microsoft's greenhouse gas emissions jumped 27% in its latest fiscal year, the tech giant disclosed Thursday, adding to a wave of worsening environmental reports from an industry racing to build AI infrastructure.

by Lisa Stiffler on Jul 9, 2026 at 9:00 amJuly 9, 2026 at 8:30 am

Inside a Microsoft data center. (Microsoft Photo) Microsoft has just four more years to reach its ambitious goal of removing more planet-warming carbon that it produces. But the company’s annual sustainability report, released Thursday, shows it’s moving in the opposite direction, as its 2025 emissions spiked 25% over the previous year.

Despite the troubling increase, Microsoft leaders say they remain committed to the longer-term goal.

“We continue to really be focused around carbon negativity by 2030,” said Melanie Nakagawa, chief sustainability officer, in an interview with GeekWire.

The Redmond, Wash.-based company is the latest tech giant to fall further behind its climate targets as they invest billions of dollars in new, energy-hungry data centers to power the AI boom. Amazon’s carbon footprint jumped 16% last year, while Google’s greenhouse gas emissions swelled 18%.

The report also shows how much energy use drove that increase: Microsoft’s emissions from purchased electricity — known as Scope 2 emissions — grew by 25% last year.

In total, Microsoft produced 34 million metric tons of carbon dioxide equivalent in 2025. After subtracting the carbon it paid to remove from the atmosphere, that figure drops to a net 20 million tons. That puts the company’s footprint roughly on par with the total emissions of Panama or Lithuania.

In addition to data center expansion, Nakagawa said, the carbon increase was also driven by Microsoft’s decision to stop buying unbundled, short-term renewable energy certificates, or RECs — a mechanism companies can use to quickly lower their reported emissions for a given year. Microsoft is instead prioritizing longer-term initiatives with bigger impact, she said.

The challenge Microsoft wants to answer, she said, is how to take a “portfolio approach” that spans carbon dioxide removal, carbon-free electricity, sustainable materials, and fuels — addressing all of them together rather than in isolation.

Image from Microsoft’s 2026 sustainability report. Where Microsoft made gains The annual report highlighted areas of success. That includes:

Matching its electricity consumption worldwide with clean energy sources. For the first time, replenishing more fresh water globally than it withdrew, making important progress on its 2030 goal of being water positive across operations. Achieving 92% reuse and recycling of decommissioned cloud servers and components for the second consecutive year. Reaching a total of 40 gigawatts of clean power purchase agreements across 26 countries, with 19 gigawatts currently online. (Forty gigawatts is roughly enough power to serve 30-40 million typical U.S. homes at once.) Scrutiny over recent moves Microsoft’s sustainability disclosures come after a series of announcements and news reports that have raised concerns among climate advocates.

Last month, Microsoft and Chevron announced an agreement to build a natural gas facility in Texas with a 2.67 gigawatt capacity, providing dedicated electricity to the tech company for 20 years. In May, Bloomberg reported that Microsoft was considering scaling down or scuttling a pledge to match its electricity use with carbon-free power around the clock by 2030. In April, the New York Times reported that Microsoft was pausing future purchases of carbon removal credits, after years as the market’s top buyer. Nakagawa said the company has not canceled any canceled removal projects, though she did not provide specifics about new purchases going forward. “We’re just continuing to take a hard look at each of the deals that are coming through,” she said, and looking for “credible opportunities to scale.”

Asked about Microsoft’s commitment to purchasing clean energy 24/7 — an approach that would eliminate reliance on coal- or gas-powered energy when wind and solar aren’t available — Nakagawa declined to confirm it. “We still are looking towards opportunities around carbon-free electricity,” while focusing on the 2030 carbon negative goals, she said.

As to the natural gas deal, the chief sustainability officer said Microsoft has also contracted to purchase 4.7 gigawatts of renewable power in Texas alone and that the company evaluates its energy investments as part of a broader mix.

Looking for efficiencies elsewhere Even as data centers remain the prime driver of Microsoft’s rising energy use and emissions, the company points to other steps aimed at reducing the environmental footprint of the facilities.

That includes increasing the use of lower-carbon steel and concrete and incorporating mass timber into data center buildings. And In the past year, Microsoft has added a seventh Circular Center — one of several facilities worldwide where the company recycles and reuses electronics from data center operations.

Microsoft is also working with developers to use AI models more efficiently and build right-sized products. AI agents can review, test and improve code so it uses less energy when it runs, Nakagawa said.

“I definitely think there’s an opportunity here,” she said.

Microsoft (MSFT 1.41%) has been a terrible investment in 2026. The stock has declined 21% year to date, and it has been a straight line down since 2026 began. To add injury to insult, Microsoft stock is now down around 30% from its all-time high set last October. It has been a nearly year-long run of Microsoft disappointment, but is now the time to buy the stock?

A few days ago, Microsoft hit a 52-week low, but it has rallied a bit since then. Still, it looks primed to deliver incredible upside, as it's a strong player in the artificial intelligence (AI) space and is taking a balanced approach to the major economic shift.

Image source: Getty Images.

Microsoft is a screaming deal Microsoft is approaching AI from several different angles. First, it is developing Copilot, its AI tool to assist users of its other software products. This has been a strong addition to Microsoft's lineup, helping push its AI annual recurring revenue to $37 billion, up 123% year over year in its most recent quarter.

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Another way Microsoft is thriving is from cloud revenue. Few companies have the computing resources available to build and run AI applications, so they rent them from cloud computing platforms like Microsoft Azure. Azure hosts countless generative AI models, so users can pick and choose which large language model (LLM) is right for them. Azure is growing rapidly, with 40% revenue growth during its last quarter.

While Azure is technically neutral about which AI model is used, Microsoft would prefer that its users deploy ChatGPT, the model from OpenAI. Microsoft is a major OpenAI investor and exchanged computing power for equity in OpenAI. This has led Microsoft to build up a massive 27% stake in OpenAI.With OpenAI projected to go public at a valuation of $1 trillion or more, this investment appears to be paying off for Microsoft.

All three of these are top reasons to invest in Microsoft, yet the stock is priced at dirt cheap levels.

Data by YCharts.

At less than 20 times forward earnings and well below its five-year average of 30.2, Microsoft looks like a screaming deal, especially with the S&P 500 trading for 21.7 times forward earnings. Microsoft is a fantastic stock pick that's on sale for no good reason. I won't be surprised to see Microsoft stock skyrocket sometime in July, especially with its earnings coming out later this month. That could be the catalyst it needs to kick-start its return, making now the perfect time to buy it.

Important Notice Regarding Alleged AI Product Misrepresentations and Concealed Copilot Deficiencies at Microsoft

, /PRNewswire/ -- SueWallSt notifies investors in Microsoft Corporation (NASDAQ: MSFT) that a class action lawsuit has been filed on behalf of shareholders who purchased securities between May 1, 2025 and January 28, 2026. Submit your information here. You may also contact Joseph E. Levi, Esq. at [email protected] or (888) SueWallSt.

Microsoft shares traded above $550 during the Class Period as the Company touted "best-in-class" AI capabilities and record Copilot adoption. The lead plaintiff deadline is August 11, 2026.

The Alleged AI Product Deception

The artificial intelligence sector has attracted hundreds of billions in enterprise spending, and Microsoft positioned itself at the center of that wave. Throughout the Class Period, the Company claimed its Copilot family of products enjoyed surging adoption, with management representing that 90% of the Fortune 500 used Microsoft 365 Copilot and that paid commercial seats grew 7% year-over-year to over $430 million. The lawsuit contends these statements concealed a far different reality.

How Copilot's Alleged Deficiencies Affected Investor Confidence

According to the complaint, Microsoft's Copilot products suffered from significant brand positioning failures, user experience shortcomings, data siloing constraints, computational capacity bottlenecks, organizational dysfunction, and interoperability problems. The action further alleges that:

Copilot's brand was fragmented through numerous launch versions across various consumer and enterprise applications with inconsistent features and unclear differentiation Data siloing prevented Copilot from delivering the "Work IQ" contextual intelligence that management claimed set the product apart from competitors Computational capacity constraints limited the product's ability to perform complex agentic workflows that executives publicly promoted Organizational problems hampered coordination between teams responsible for different Copilot iterations Interoperability failures undermined claims that Copilot seamlessly integrated across Outlook, Word, Excel, PowerPoint, and Teams The "freemium" to paid seat conversion pipeline was allegedly far weaker than management's representations suggested The Circular Investment Risk Allegedly Hidden from Shareholders

The lawsuit also contends that Microsoft downplayed the circularity embedded in its multibillion-dollar AI partnerships. The Company invested over $13 billion in OpenAI and committed up to $5 billion in Anthropic, while those same partners contracted to purchase billions in Azure services. This arrangement allegedly created concentration risk that management minimized even as it drove reported Azure revenue growth figures that the market relied upon.

Act now. Click here to learn more or call (888) SueWallSt.

"This case presents important questions about AI product disclosure obligations in the enterprise technology sector. When a company represents that its flagship AI offering is 'best-in-class' and enjoying record adoption, investors are entitled to know about material technical and organizational problems undermining those claims." -- Joseph E. Levi, Esq.

Submit your information to join this case or contact Joseph E. Levi, Esq. at (888) SueWallSt.

WHY SUEWALLST: SueWallSt is a brand of Levi & Korsinsky LLP. Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States. 

Frequently Asked Questions About the MSFT Lawsuit

Q: What is the MSFT class action lawsuit about? A: A securities class action has been filed against Microsoft Corporation (NASDAQ: MSFT) alleging materially false and misleading statements about the Company's AI initiatives, Copilot products, and Azure cloud platform between May 1, 2025 and January 28, 2026. The complaint alleges Microsoft concealed significant technical and organizational problems while touting record AI adoption.

Q: Who is eligible to join the MSFT investor lawsuit? A: Investors who purchased MSFT stock or securities between May 1, 2025 and January 28, 2026 and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses, not on whether you still hold the shares.

Q: What do MSFT investors need to do right now? A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Contact SueWallSt, a brand of Levi & Korsinsky LLP, for a no-cost, no-obligation case evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible as an absent class member.

Q: What if I already sold my MSFT shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the class period and sold at a loss may still participate.

Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.

Q: What specific misstatements does the MSFT lawsuit allege? A: The complaint alleges Microsoft made materially false or misleading statements regarding Copilot's adoption rates, technical capabilities, competitive positioning, and the return on investment for AI-related capital expenditures, while concealing brand positioning failures, data siloing, and computational capacity problems.

Q: How long will the lawsuit take to resolve? A: Securities class actions typically take two to four years from initial filing to resolution.

CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (888) SueWallSt
Fax: (212) 363-7171

Attorney Advertising. Prior results do not guarantee similar outcomes.     

SOURCE SueWallSt.com

9.7.2026 15:52, MSFT, IBM, MU, SBUX, PEP, META, PSKY, HY9H

Index Dow Jones -0,12 % na 52286,93 b., S&P 500 +0,32 % na 7506,42 b., Nasdaq Composite +0,53 % na 26008,92 b.

Technologické akcie dnes táhnou index S&P 500 nahoru, podpořeny silnou poptávkou po americkém IPO jihokorejského výrobce paměťových čipů SK Hynix. Nabídka je podle lidí obeznámených s danou záležitostí více než sedmkrát přepsána. Cena emise byla stanovena na 149 USD za jeden americký depozitní certifikát, přičemž akcie se mají začít obchodovat na burze v pátek.

Micron (+7,2 %) oznámil urychlení plánovaných investic do amerických výrobních závodů a technologií. Celkové výdaje by měly do roku 2035 přesáhnout 250 mld. USD, oproti původně plánovaným 200 mld. USD. Cílem je vyrábět 40 % veškeré paměti DRAM v USA, přičemž první výstup z výrobní linky v Idahu se očekává v polovině roku 2027.

Naopak akcie Paramount Skydance klesají 7,8 % poté, co analytická společnost Arete Research snížila své doporučení na „prodat" a stanovila nejnižší cílovou cenu na trhu. Důvodem je obava z vysokého zadlužení, které by společnosti přinesla případná fúze s Warner Bros. Discovery.

Akcie IBM a Microsoftu také oslabují poté, co Bloomberg News informoval, že Starbucks vyvíjí vlastní interní nástroje s pomocí umělé inteligence, které by mohly nahradit software nakupovaný od těchto společností. Řetězec káváren buduje alternativy k systému Microsoftu pro sledování zásob a nástroji IBM pro správu údržby. Část nového softwaru by mohla být nasazena do konce příštího roku, pokud projde testováním.

Výrobce nápojů a potravin PepsiCo (-4,8 %) zveřejnil výsledky hospodaření za druhé čtvrtletí roku fiskálního roku 2026. Organické tržby vzrostly o 2,4 %, čímž mírně zaostaly za odhadem analytiků, přičemž segment potravin v Severní Americe organicky klesl o 2 %. Tržby a jádrový zisk na akcii odhady mírně překonaly a společnost potvrdila celoroční výhled organického růstu tržeb.

Společnost Meta Platforms (-2,7 %) plánuje od září zahájit výrobu vlastního AI čipu, a to jako součást plánu na navýšení celkové výpočetní kapacity na 14 gigawattů v příštím roce. Vyplývá to z interního mema, které měla agentura Reuters k dispozici.

Index S&P 500 +0,32 % na 7506,42 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Informační technologie +1,5 % Nezbytná spotřeba -1,8 % Průmysl +0,9 % Komunikační služby -1,5 % Utility +0,2 % Zbytná spotřeba -0,7 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Lam Research Corp (LRCX) +11 % Paramount Skydance Corp (PSKY) -7,8 % Lumentum Holdings (LITE) +10,0 % PepsiCo (PEP) -4,8 % Applied Materials (AMAT) +9,6 % FactSet Research Systems (FDS) -4,4 % KLA Corp (KLAC) +9,4 % Palantir Technologies (PLTR) -4,0 % Ciena Corp (CIEN) +8,6 % Gartner (IT) -3,8 % Zdroj: Bloomberg

Michal Šnobl
Fio banka, a.s.
Prohlášení

Todd Sohn je hlavní technický analytik ve společnosti Strategas, který v rozhovoru se Stevem Eismanem hovořil o svém pohledu na současné a budoucí dění na trzích. Grafy podle něj rychle a přehledně vypráví o tom, co se děje. Nyní je podle něj zřejmé, že trhem hýbou hlavně polovodiče. K softwaru čekal, že to nejhorší může být už za tímto sektorem. Sektor ale stále působí chaoticky a stále nemusí být v bodě, kdy představuje dobrou nákupní příležitost.

Eisman následně odpovídal na dotaz týkající se akcie GE Vernova, kterou on sám podle svých slov vlastní již dlouhou dobu a je jeho oblíbená. Sohn k ní řekl, že kdyby viděl graf s vývojem ceny bez toho, aby věděl, o jakou společnost jde, viděl by v něm možnou blížící se příležitost k nákupu. Před časem byla totiž akcie překoupená, od té doby došlo ke konsolidaci a vybírání zisků. „V tuhle chvíli graf vypadá dobře.“ Svou roli ale hrají i jiné faktory, třeba výrazný list popularity bot společnosti Hoka, která se opírá i o to, že je doporučují pediatři.

Nike čelí problémům už delší dobu a „jde o velkou loď, u které se kurz nemění tak rychle. Konkurence je navíc intenzivní a nespí včetně zmíněné Hoky či New Balance. „Nike se vzdala určitého prostoru na regálech a nová konkurence jej okamžitě zabrala.“

K Amazonu Eisman řekl, že tuto akcii vlastní, ale graf její ceny podle něj nevypadá moc dobře. Sohn dodal, že jsou jak mnohem horší, tak i mnohem lepší, tenhle je někde uprostřed. Meta je „mnohem chaotičtější“, Sohn byl podle svých slov k této akcii za posledních deset let často skeptický, ale vždy se vzchopila. Nyní by proti ní hovořilo mimo jiné to, že zatímco celý trh dosahuje na nová maxima, Metě se to už nějakou dobu nepodařilo. K tomu plovoucí dvousetdenní průměr neroste (tak jako třeba u zmíněné GEV). A nyní dokonce obrací dolů.

Oracle vidí expert podobně jako software. Může se odrážet od dna, ale „na trhu je hodně lepších příležitostí“. Microsoft je „v podobné pozici jako meta, ne-li slabší.“ Jiným příběhem je Google. Ten byl hodně překoupený, nyní dochází k vybírání zisků a je šance, že „bude kupovatelný“.

Sohn následně hovořil o boomu zapáčených ETF, které poskytují znásobené zisky na akciích, ale to samé platí o ztrátách. Populární jsou také tématické ETF, které se zaměřují na konkrétní oblasti a příběhy včetně „vesmíru“. U finančních titulů nyní podle experta panuje hodně skepse, která z velké části pramení z negativních zpráv týkajících se úvěrů poskytovaných mimo trhy. Sohn ale tuto skepsi k financím vidí jako možný býčí signál dalšího vývoje. Chuť na sektory zdravotní péče „po krátkém trvání zase vyprchala“ a jde po delší dobu o „ten nejvíce frustrující sektor“. Jeho podíl na celkové kapitalizaci trhu postupně znatelně klesl a „situace je tak špatná, že lze uvažovat o tom, že už je dobrá.“ Tedy že také dojde k obratu a „normalizaci“.

Sohn rovněž tvrdí, že „kvalita jen zabírá místo v investičních portfoliích“. Nyní jsou totiž ve skupině kvalitních akcií a firem zejména ty technologické, což znamená, že kvalita vůbec nepůsobí jako něco, co by mělo diverzifikovat rizika. ETF zaměřující se na tuto oblast naopak vykazují vysokou korelaci s pohybem celého trhu. „Proč bych to potřeboval, když to dělá to samé jako celý trh? To si můžu rovnou koupit index.“

In the latest close session, Microsoft (MSFT - Free Report) was down 1.41% at $383.34. This change lagged the S&P 500's 0.28% loss on the day. Meanwhile, the Dow experienced a drop of 1.09%, and the technology-dominated Nasdaq saw an increase of 0.2%.

Shares of the software maker have depreciated by 3.61% over the course of the past month, underperforming the Computer and Technology sector's loss of 1.22%, and the S&P 500's gain of 1.64%.

The investment community will be closely monitoring the performance of Microsoft in its forthcoming earnings report. On that day, Microsoft is projected to report earnings of $4.21 per share, which would represent year-over-year growth of 15.34%. Alongside, our most recent consensus estimate is anticipating revenue of $87.44 billion, indicating a 14.39% upward movement from the same quarter last year.

MSFT's full-year Zacks Consensus Estimates are calling for earnings of $17.33 per share and revenue of $329.26 billion. These results would represent year-over-year changes of +27.05% and +16.87%, respectively.

Investors might also notice recent changes to analyst estimates for Microsoft. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.02% increase. Microsoft currently has a Zacks Rank of #3 (Hold).

From a valuation perspective, Microsoft is currently exchanging hands at a Forward P/E ratio of 20.16. This signifies a premium in comparison to the average Forward P/E of 16.55 for its industry.

Meanwhile, MSFT's PEG ratio is currently 1.22. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 1.27.

The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 103, putting it in the top 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

REDMOND, Wash., July 8, 2026 /PRNewswire/ -- Microsoft Corp. will publish fiscal year 2026 fourth-quarter financial results after the close of the market on Wednesday, July 29, 2026, on the Microsoft Investor Relations website at https://www.microsoft.com/en-us/Investor/. A live webcast of the earnings conference call will be made available at 2:30 p.m. Pacific Time.

Microsoft (Nasdaq "MSFT" @microsoft) creates platforms and tools powered by AI to deliver innovative solutions that meet the evolving needs of our customers. The technology company is committed to making AI available broadly and doing so responsibly, with a mission to empower every person and every organization on the planet to achieve more. 

SOURCE Microsoft Corp.

Microsoft (MSFT 1.34%) stock fell after the company announced layoffs in its Xbox unit. Despite double-digit increases in revenue during the third quarter of fiscal 2026 (ended March 31), revenue in its Xbox unit decreased by 5% annually in that quarter, likely drawing attention to that segment.

The restructuring announcement is likely welcome news after the recent drop and could improve the company's financial performance. Nonetheless, investors should probably not expect a dramatic recovery in the tech stock because of this move. Here's why.

Image source: The Motley Fool.

Microsoft's ongoing struggles Admittedly, the Xbox unit looks like the obvious target for a restructuring, as it was Microsoft's worst-performing unit. Also, the division that oversees the Xbox unit, "More Personal Computing," reported a 1% annual decrease in revenue in fiscal Q3, even as Microsoft's overall revenue rose by 18% during the quarter.

To get Xbox on track, Microsoft is laying off 4,800 employees, a 2.1% reduction in its overall workforce. Also, four studios will go independent. It is quite possible these moves will stem the revenue declines for both Xbox and More Personal Computing overall.

Moreover, the company's P/E ratio has fallen to 23, just above multiyear lows. That arguably makes it a deep value stock, increasing the odds of a turnaround in Microsoft's stock price.

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Unfortunately for investors, the cloud has long driven the growth in Microsoft stock. Since Microsoft Cloud revenue increased by 29% over the last year, one might think the stock should be surging.

However, the earnings report glosses over challenges the company has faced with AI. Like its peers, Microsoft has spent heavily on capital expenditures (capex), allocating over $80 billion in the first nine months of fiscal 2026.

Unfortunately, Microsoft has relied heavily on OpenAI, which has burned cash at an alarming rate. Also, with around 45% of Microsoft's $627 billion backlog tied to OpenAI, Microsoft faces significant uncertainty.

Additionally, adoption of Copilot, Microsoft's AI-powered assistant, has underwhelmed the market with only about 4.7 million paid subscriptions in fiscal Q2, less than the 9 million for ChatGPT. This calls into question whether it can compete with OpenAI or peers such as Anthropic's Claude or Gemini, developed by Google parent Alphabet.

That factor also makes it less likely investors are watching the Xbox unit closely, which could mean the restructuring may go unnoticed.

Expect few changes in Microsoft stock Ultimately, restructuring the Xbox unit is unlikely to help Microsoft's stock.

On the surface, addressing the worst-performing business unit could make its financials appear more sound. Amid the company's falling P/E ratio, such a move should reduce stock losses.

Unfortunately, the company's deepest struggles with Microsoft's stock appear to stem from its AI performance relative to competitors'. Even though its AI adoption has grown, it appears that growth has lagged that of Anthropic or Google. That makes it increasingly likely that Microsoft will need to address that competitive gap for the stock to outperform the market for the foreseeable future.

The Microsoft logo is displayed on a smartphone screen placed on a reflective surface onto which the Department of War emblem is projected, in Creteil, France, on May 4, 2026. The Pentagon has signed agreements to integrate AI into its classified networks. (Photo by Samuel Boivin/NurPhoto via Getty Images)

NurPhoto via Getty Images

This article was written by Doug Nathman, with research by his team at Trefis.

What may seem like just another AI product reflects a fundamental and possibly profitable transformation in the company's revenue model.

Despite being a key player in the AI arena, Microsoft (MSFT) shares have remained surprisingly grounded. Over the last year, the stock has dropped approximately 20% and is trading 28% below its peak from the past 52 weeks. With so much emphasis on innovative features, you might be curious about what could genuinely drive a sustainable rise from this point.

The solution lies in a subtle yet significant change in the company’s overall business strategy, which has the potential to unveil a new layer of growth atop its considerable existing customer base.

The New Catalyst: A "Per User and Usage" ApproachFor many years, Microsoft primarily sold software. Now, it is transitioning to a model that sells results instead. The company’s leadership characterizes this transformation as shifting towards a "per user and usage business." Consider the implications of that. Selling a subscription for access to a tool is one thing; receiving compensation for every task that tool performs is entirely different. The objective goes beyond merely adding more users to capturing a portion of the value generated from the countless queries, reports, and summaries executed by its AI agents. If this model succeeds, it could drastically alter the valuation of each of Microsoft’s hundreds of millions of users.

Are There Actually Consumers Paying For This?A robust strategy is one aspect, but execution is another matter altogether. Initial indications for this new model can be seen from its AI initiative: Microsoft 365 Copilot. The company has now achieved "over 20 million paid seats for Microsoft 365 Copilot," with numbers rapidly increasing. In the latest quarter, seat additions surged by 250% year-over-year, marking the fastest growth since the product was introduced. This is not a hypothetical scenario; it represents a genuine and growing customer base that is swiftly adopting the consumption-based solutions that signify the company’s future. We have also examined how this could affect the stock's valuation. For those preferring to invest in the entire technology sector rather than betting on one large corporation, a tech ETF like VGT includes Microsoft among its top holdings.

MORE FOR YOU

The Investment Amount Is $190 BillionMicrosoft is reinforcing this strategic pivot with a massive influx of capital. The company anticipates spending around $190 billion on capital expenditures in the calendar year 2026 alone. This substantial amount is earmarked for constructing the global infrastructure necessary to support all that new, paid usage, exceeding merely the establishment of additional data centers. The company has been transparent that even with this expenditure, robust customer demand continues to surpass available capacity. This exemplifies a classic growth narrative: invest significantly to satisfy overwhelming demand that can be directly monetized. This spending is the clearest indication of management’s confidence in the future of a per-user, per-usage model.

Microsoft is not merely undergoing another product cycle; it’s attempting to fundamentally rewire its entire business relationship with its customers. The premise is that by integrating AI agents into the everyday routines of nearly every office worker worldwide, it can generate a new, sustainable, and lucrative revenue stream that compounds over the years. The necessary components are in place, the investment is secure, and the initial wave of customers is already committing to spend.

Where Will An Opportunity Like This Appear First?An opportunity of this nature only becomes significant once it is reflected in the figures, with the first clear indication appearing in management’s forecasts. When a company can genuinely perceive the new revenue materializing, it adjusts its projections upwards, and an increased forecast rewarded by the market serves as one of the clearest validations that a scenario like this is becoming reality. Federal Realty Investment Trust (FRT), Fortinet (FTNT), and GE Vernova (GEV) are currently exhibiting precisely that signal.

What’s A Good Way To Support A Narrative Like This?A credible growth narrative warrants action, but engaging through one stock entails accepting every setback that may be faced by that single company. The more strategic approach is to maintain a diverse selection of stocks where the long-term prospects are equally strong, ensuring that the enduring upside remains intact and that no single surprise can derail it. This is the method by which patient capital grows.

The Trefis High Quality (HQ) Portfolio evaluates the entire landscape of quality across thousands of stocks, rather than focusing on a single driver, holding the 30 strongest cases, and regularly rebalancing them with discipline. It has a proven history of outperforming a benchmark combining the three major indices – the S&P 500, S&P Mid-cap, and Russell 2000.

Alphabet (NASDAQ:GOOGL | GOOGL Price Prediction) and Microsoft (NASDAQ:MSFT) both reported earnings on April 29, 2026, and the results now read very differently after this week’s news that Microsoft is replacing OpenAI and Anthropic models with its own MAI system inside Excel and Outlook. One company is defending margins. The other is compounding them.

Full Stack Google vs. a Microsoft Rebuild Google’s Q1 FY2026 was carried by owned infrastructure. Cloud revenue jumped to $20.03 billion, up 63%, with backlog nearly doubling to over $460 billion. Gemini is now processing more than 16 billion tokens per minute via API, up 60% quarter over quarter. Sundar Pichai told investors “Our AI investments and full stack approach are lighting up every part of the business.” The proprietary TPU 8t and 8i silicon powering that stack is the reason margins held at 36.1% despite capex more than doubling.

Microsoft’s Q3 FY2026 was strong on paper. Revenue hit $82.89 billion, up 18.3%, Azure grew 40%, and the AI run rate reached $37 billion, up 123% year over year. But Satya Nadella is now paying twice: once to OpenAI, once to build MAI. The Bloomberg report says tens of thousands of weekly prompts are already routing through Microsoft’s own models to cut cost.

Where the Margin Math Actually Diverges Lens Google Microsoft AI silicon Owned TPUs Third party GPUs Model dependency Gemini (in house) Transitioning to MAI-Thinking-1 Cloud growth 63% 40% YTD stock move +17.41% -19.24% A podcast source framed it plainly: Nvidia partners command roughly 70% margins, while Google’s TPU economics run closer to 40% to 50%. That gap defines the entire competitive setup.

The Next Test Is Whether MAI Can Actually Scale I will be watching how quickly Microsoft can move Copilot workloads onto MAI without breaking the enterprise experience. Reddit chatter is already noting Copilot functionality issues, and Polymarket traders give Microsoft only a 53% probability of outvaluing OpenAI plus Anthropic by year end. For Google, the risk is capex discipline. Q2 capex above $40 billion carries an 86% probability on Polymarket.

Why I Lean Toward Google Right Now You are looking at two very different setups. Google is a vertically integrated cash machine trading at a mid-teens P/E, up 108.2% over a year, with owned silicon absorbing the AI compute bill. Microsoft is mid rebuild, with a securities fraud class action and 4,800 job cuts already in the headlines. On the current evidence, the compounder profile screens more favorably than the turnaround profile. If MAI-Thinking-1 proves out at scale over the next two quarters, I will reconsider. Until then, Google is winning the AI unit economics fight, and the stock chart agrees.

Contact [email protected] for any questions or corrections.

BENSALEM, Pa. , July 08, 2026 (GLOBE NEWSWIRE) -- Law Offices of Howard G. Smith reminds investors that class action lawsuits have been filed on behalf of shareholders of the following publicly-traded companies. Investors have until the deadlines listed below to file a lead plaintiff motion.

Investors suffering losses on their investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in these class actions at (215) 638-4847 or by email to [email protected].

Erasca, Inc. (NASDAQ: ERAS)
Class Period: January 14, 2025 – April 26, 2026
Lead Plaintiff Deadline: August 10, 2026

The complaint alleges that throughout the Class Period the defendants made false and/or misleading statements and/or failed to disclose that: (1) ERAS-0015’s preclinical data was based on improper comparisons to RevMed and placed Erasca at risk of violating patent and trade secret protections; and (2) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

Nano-X Imaging Ltd. (NASDAQ: NNOX)
Class Period: March 31, 2025 – April 17, 2026
Lead Plaintiff Deadline: August 11, 2026

The complaint alleges that throughout the Class Period the defendants made false and/or misleading statements and/or failed to disclose that: (1) Defendants overstated purported efficiency gains achieved in Nano-X’s operations, as well as the purported increased demand for its products; (2) in reality, Nano-X’s production and manufacturing operations were poorly aligned with demand for the Company’s products; (3) as a result, Nano-X was experiencing significantly increased operating expenses and cash burn; (4) the foregoing significantly increased the likelihood that Nano-X would be forced to take disruptive remedial measures with respect to its manufacturing operations, entailing significant restructuring and impairment charges; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

Microsoft Corporation (NASDAQ: MSFT)
Class Period: May 1, 2025 – January 28, 2026
Lead Plaintiff Deadline: August 11, 2026

The complaint alleges that throughout the Class Period the defendants made false and/or misleading statements and/or failed to disclose: (1) that Microsoft’s Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems; (2) that Microsoft’s flagship proprietary AI model ranked well below competitors on a number of benchmark tests; (3) that Microsoft needed to increase by billions of dollars its capital expenditures and divert GPU and CPU capacity away from fulfilling demand for its profitable Azure services in order to improve the competitive positioning of its critical Copilot family of products and increase its AI-related R&D; (4) that, as a result of the foregoing, Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and the Company’s Copilot offerings had lost market share to rival products, a trend that was increasing; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

Black Rock Coffee Bar, Inc. (NASDAQ: BRCB)
Class Period: September 12, 2025 – May 12, 2026
Lead Plaintiff Deadline: August 17, 2026

The complaint alleges that throughout the Class Period the defendants made false and/or misleading statements and/or failed to disclose: (1) Black Rock Coffee’s new store openings were leading to a cannibalization of its existing services and revenue; (2) Black Rock Coffee overstated the manner in which its expansion strategy was tailored to avoid “sales transfer”; (3) as a result of “sales transfer,” the Company’s financial results were materially impacted; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

To be a member of these class actions, you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about these class actions, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847 or by email to [email protected], or visit our website at www.howardsmithlaw.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
[email protected]
www.howardsmithlaw.com

Artificial intelligence (AI) investing has been a winning investment theme during the past four years. Since the AI build-out kicked off in 2023, several of these stocks have been major winners. However, 2026's winners have been a bit more selective, with some companies doing incredibly well, while others are not doing as well.

Overall, I think the AI investment picture is still strong, and this theme will dominate the market for the rest of 2026, into 2027, and beyond until at least 2030. That means some of these stocks will be able to go much higher. If you're looking for which AI stocks are the best buys for the rest of 2026, I think this list is a great place to start, as they could go higher still.

Image source: Getty Images.

Micron Micron (MU 5.25%) may seem like an odd one to include on this list, in part because its stock has more than tripled this year. However, demand for Micron's core products, NAND and DRAM memory chips, is off the charts, and it doesn't expect market conditions to change through the calendar year 2027. That means Micron can continue to deliver unprecedented growth and thrive from the lack of memory chip supply.

Today's Change

(

-5.25

%) $

-51.65

Current Price

$

933.10

Micron's stock only trades for 13.6 times this year's earnings and 6.6 times next year's earnings, so buying today could lock in major returns by the end of 2027 if tightness in the memory chip market persists.

Nebius Nebius (NBIS 8.30%) has also had a strong year on the back of downright incredible growth. Nebius is a neocloud provider, which means it focuses on AI-first cloud computing. Demand for its product has been insatiable, and it delivered 684% revenue growth in Q1. Wall Street analysts expect another strong quarter in Q2, with 459% growth anticipated.

Today's Change

(

-8.30

%) $

-17.68

Current Price

$

195.34

For 2026 and 2027, Wall Street projects 544% and 234% revenue growth. With this tiny company rapidly expanding into an AI computing giant, now is the perfect time to jump on the shares, because if the AI build-out lasts through the end of this decade, Nebius has a lot higher to go.

Nvidia Nvidia (NVDA +0.62%) has been the top AI stock pick since 2023, and nothing has changed since then. The industry still relies on its graphic processing units (GPUs), and Nvidia's revenue was forecast to double year over year in Q2. However, the stock has gone on sale, and it's down about 17% from its all-time highs.

Today's Change

(

0.62

%) $

1.22

Current Price

$

196.77

Buying opportunities don't come around all that often for Nvidia stock, and now is the perfect time to load up on the shares, especially with its price tag at about 22 times forward earnings -- a good deal less than the S&P 500 (^GSPC 0.45%).

Microsoft Next is Microsoft (MSFT +0.59%), which has had a terrible run during the past year. It has fallen about 30% from its all-time highs, leading many investors to believe that its AI strategy isn't panning out. However, with a 27% stake in OpenAI (projected to go public later this year at a valuation of more than $1 trillion), its AI business producing an annual recurring revenue of $37 billion growing at a 123% pace, and a 40% cloud computing growth rate, I think it's safe to say that Microsoft is doing just fine.

However, its stock is dirt cheap at 20 times forward earnings.

MSFT PE Ratio (Forward) data by YCharts

With it being far cheaper than the S&P 500 and growing at a solid pace, I think it's the perfect stock to buy now.

Meta Platforms The market hasn't been kind to Meta Platforms (META +2.59%) either, as investor focus on the huge amount of money Meta is spending on AI without accounting for the tremendous growth its ad business has delivered. In Q1, Meta's revenue rose 33%, yet the stock has been pretty steady off its all-time highs. Meta is down about 25% from its all-time high, and also trades for a cheap price tag like Microsoft.

META PE Ratio (Forward) data by YCharts

At just 18 times forward earnings, Meta looks like an incredible bargain, and could be a strong candidate to be a top-performing AI stock in the second half of 2026 as the market comes around to its AI plan.

NEW YORK, July 08, 2026 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces that a class action lawsuit has been filed against Microsoft Corporation (NASDAQ:MSFT) and certain of the Company’s senior executives for securities fraud after its significant stock drop resulting from potential violations of the federal securities laws.

If you invested in Microsoft, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/microsoft-class-action-lawsuit.

Key Details of the Microsoft ($MSFT) Class Action:

Lead Plaintiff Deadline: August 11, 2026Alleged Misconduct: Securities fraud alleging that Microsoft misled investors regarding its Azure cloud computing platform and AI chatbot CopilotStock Drop: January 28, 2026 – 10% Stock DropCourt: U.S. District Court for the Western District of WashingtonAction: Contact BFA Law to discuss your rights
Investors have until August 11, 2026 to ask the Court to be appointed to lead the case. The complaint asserts securities fraud claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Microsoft common stock. The class action is pending in the U.S. District Court for the Western District of Washington. It is captioned City of St. Clair Shores Police and Fire Retirement System, et al., No. 26-cv-02071.

Why is Microsoft Being Sued for Securities Fraud?

Microsoft is a multinational technology company that develops software, cloud services, and devices. In recent years, Microsoft’s cloud computing platform named Azure has been Microsoft’s main growth driver. A key reason for Azure’s recent growth is Microsoft’s multi-billion-dollar investment into AI, including the development of its own generative AI chatbot named Copilot.

According to the complaint, during the relevant period, Microsoft consistently touted Copilot’s best-in-class capabilities, which purportedly drove widespread and growing user adoption. Copilot’s apparent success allowed Microsoft to report surging Azure-related revenue.

As alleged, in truth, Copilot suffered from severe functionality issues that caused user adoption to decline and put Microsoft’s Azure revenue at risk.

Why did Microsoft’s Stock Drop?

On January 28, 2026, Microsoft announced disappointing 2Q 2026 financial results and that Azure growth had slowed suddenly. Microsoft also allegedly revealed for the first time that the number of Microsoft 365 Copilot premium customers totaled only 15 million, materially below analyst estimates.

This news caused the price of Microsoft common stock to decline $48.13 per share, or 10%, from $481.63 per share on January 28, 2026, to $433.50 per share on January 29, 2026.

Additionally, on February 3, 2026, The Wall Street Journal reported in an article titled “Microsoft’s Pivotal AI Product Is Running Into Big Problems” that severe challenges and functionality issues had plagued Copilot, causing the application to lose market share. Specifically, The Wall Street Journal reported that “[c]onfusing brand positioning and interoperability problems have frustrated users.”

Click here for more information: https://www.bfalaw.com/cases/microsoft-class-action-lawsuit.

What Can You Do?

If you invested in Microsoft, you may have legal options and are encouraged to submit your information to the firm.

All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.

Submit your information by visiting:

https://www.bfalaw.com/cases/microsoft-class-action-lawsuit

Or contact:
Adam McCall
[email protected]
212.789.3619

Why Bleichmar Fonti & Auld LLP?

BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named “Elite Trial Lawyers” by the National Law Journal, “Litigation Stars” by Benchmark Litigation, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360 and “SuperLawyers” by Thomson Reuters.

Most recently, The Legal 500 awarded BFA the most client satisfaction accolades of any plaintiff’s securities litigation law firm, with clients noting: “[t]here is no better service provider in the practice area,” “[t]he interest of the client is always front and center,” and “[t]here isn’t a better firm in this space.” One testimonial described the firm as “nimble and entrepreneurial,” with a “relentless focus on adding value for clients.”

Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.

For more information about BFA and its attorneys, please visit https://www.bfalaw.com.

https://www.bfalaw.com/cases/microsoft-class-action-lawsuit

Attorney advertising. Past results do not guarantee future outcomes.