Iren (IREN -1.56%) shattered two bearish storylines upon announcing that its Horizon 1 data center project was operational and had been delivered to its tenant, Microsoft (MSFT -0.30%). It's one of four 50-megawatt sites that were part of a landmark deal the neocloud company struck last year.
One issue that has been driving bearish concerns about Iren has been its use of debt financing, but that headwind may start to fade thanks to this deal. Furthermore, Iren once again proves it can meet deadlines and turn its artificial intelligence (AI) capacity into meaningful revenue growth.
Image source: Getty Images.
Iren's reliance on financing may soon come to an end
Iren has raised billions of dollars in recent years, primarily through the sale of its corporate bonds, to fund the build-outs of its AI data centers. Investors knew that taking on heavy debt was the cost of business, since Iren isn't making much money yet relative to what's actually needed to build the data centers it's leasing to clients.
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However, as Iren turns more of its existing assets into realized revenue, it may be less reliant on financing in the future. The Horizon 1 deal will bring in roughly $500 million in annual recurring revenue for the next five years.
Iren CEO Dan Roberts said the company is working to deliver Horizon sites 2, 3, and 4 later this year. Once all of those sites are ready, the Horizon sites will produce a combined $1.94 billion annually over the next five years.
Granted, those figures do not account for a 20% prepayment on the site. That turns the $9.7 billion, five-year deal into $7.76 billion over five years, which averages to roughly $1.55 billion per year.
Those revenues alone won't cover all of Iren's data center build-out costs, but they will make Iren less reliant on debt financing. However, Microsoft isn't its only customer. The company shared in July that it had signed $2.8 billion in new customer contracts, and management raised its 2026 annual recurring revenue target to over $4 billion. Notably, prepayments for those deals were as high as 45%.
While such prepayments do cut into the annual recurring revenues received during the initial phases of those contracts, they do provide extra capital that Iren can use to build more data centers and obtain more resources without tapping into debt.
Iren is earning $1.94 billion per year from 200 megawatts
Those are the terms for the Microsoft deal, and it represents a small slice of Iren's capacity. It has 5.8 gigawatts of total capacity that is under development, so it can support 28 additional contracts like the Microsoft one.
Granted, the company has already been securing customers for some of its megawatts, so it doesn't have all of them available to offer. Furthermore, some of its data center sites will take years to complete. Iren is aiming for 480 megawatts of gross AI cloud capacity by the end of this year and expects to almost triple that figure by the end of 2027.
Iren does not need revenue from all 5.8 gigawatts to become less reliant on financing. The company earned only $144.8 million in its fiscal 2026 third quarter. Its projected $4 billion in annual recurring revenue indicates that at least one quarter in 2027 will produce $1 billion in total sales.
Once the growth arrives, Iren will eventually be in a position to expand its margins and fund its data centers with its own cash flow. Investors shouldn't expect that to happen this year, but it may start to take shape in 2027 or 2028.
The value of compute continues to rise
Not only is Iren starting to make money from its Microsoft deal, but its remaining inventory also continues to gain value. Rival neocloud Nebius (NBIS +8.88%) held its first-ever capacity auction, and the winning customer paid a 15% premium compared to any price Nebius had charged before.
Nebius also commanded prices of $40 million to $50 million per megawatt in recent deals, despite an average yield of just above $20 million per megawatt.
These results show that the AI capacity Iren is building is growing in value. That makes Roberts and the Iren team look a lot smarter for not rushing to make deals. Higher annual contract values will help with margins, and can provide Iren with a realistic path to reduce its reliance on financing for future AI expansion projects.
One thing that stood out in Space Exploration Technologies' (SPCX -0.91%) first quarterly earnings report as a publicly traded company was just how much it's spending to build out new AI compute capacity. The company's AI-related capital expenditures doubled sequentially to $15.8 billion, and management said it expects to continue spending at a similar level through the end of the year.
To be sure, that capex spending is still dwarfed by what hyperscalers such as Amazon (AMZN -0.94%), Alphabet (GOOG -0.12%) (GOOGL -0.13%), and Microsoft (MSFT -0.30%) are laying out on data centers. Each of those three spent between $41 billion and $55 billion last quarter alone. But they're also generating huge amounts of revenue from their cloud computing units, with massive backlogs of contracted business.
However, SpaceX CEO Elon Musk believes his company can deploy capital much more efficiently than the hyperscalers can, thanks to a unique competitive advantage.
SpaceX CEO Elon Musk. Image source: The White House.
What is SpaceX's advantage in artificial intelligence? Musk argues that SpaceX has an engineering advantage over everyone else competing in the cloud computing business. His premise is that it can deploy the engineering talent pool and intellectual property base that supported the development of its rocket operations to efficiently build new data centers that produce high returns on investment.
"We're finding that even a small amount of what we've learned building rockets, which are incredibly difficult, applied to data centers, yields tremendous benefits," Musk said on the company's first earnings call. He noted its cooling systems are well ahead of what's needed.
The payoff potential appears substantial.
"The current economics have translated into a less than one-year payback on our new capital deployments for compute," CFO Bret Johnsen said during his prepared remarks.
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That stands in stark contrast to comments from Amazon CEO Andy Jassy, who outlined the economics for Amazon Web Services' massive build-out.
"Data center capital is spent starting two years before we can put servers into them to start monetizing," he explained. That's just the physical limitations it's seeing in building new data centers; it can't even begin to monetize them for two years, let alone break even in one year.
"For servers and networking equipment, on average, it takes a little less than three years to break even on that investment," Jassy added. Even if the cost of a data center were zero, Jassy said it would take nearly three years to break even on the equipment it buys to equip those buildings. Results from Microsoft and Alphabet suggest similar timelines for their operations.
There's a huge gap in SpaceX's accounting and Amazon's accounting. Is SpaceX, a company that practically entered the cloud computing space yesterday, really so much more efficient at engineering and capital deployment that it can produce results three times better than those of the hyperscalers?
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Why investors should be skeptical of Musk's claims Musk has never shied away from making bold claims about where his businesses are headed, and when they will pass various milestones. More often than not, the results fall short of his predictions. There's reason to be skeptical about SpaceX's ability to establish a meaningful competitive advantage in AI compute based on its engineering talent alone.
While Johnsen's claim that it's producing very fast paybacks on its current investments may be accurate, it's not clear that it will be able to scale up as efficiently. SpaceX had existing infrastructure that it used to provide more compute capacity to third-party customers like Anthropic and Alphabet's Google last quarter. That's not necessarily repeatable.
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What's more, it simply doesn't make sense that SpaceX could easily retain such top talent in the face of competition from hyperscalers. As mentioned, Alphabet, Amazon, and Microsoft are spending three times as much on capital expenditures as SpaceX. Their businesses are heavily reliant on efficient returns on that capital spending. They would surely pay up for top talent if it meant improving their return on capital severalfold.
SpaceX is merely in a position to provide some AI compute at a time when there's a severe shortage of it. Alphabet has signed a contract with the company for compute because the long-term potential of serving large customers like Anthropic now with its own infrastructure by offloading some of its internal AI compute needs to a third party is too good to pass up.
Alphabet can end its contract with SpaceX as soon as it builds enough capacity for itself. That could result in some excellent short-term revenues for SpaceX, but it doesn't indicate a long-term competitive advantage in cloud computing.
Bank of America Corp DE reduced its holdings in shares of Microsoft Corporation (NASDAQ: MSFT) by 3.2% in the undefined quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 70,765,459 shares of the software giant's stock after selling 2,355,912 shares during the quarter. Microsoft
Microsoft remains a “Buy,” driven by robust earnings, cloud growth, and a 21-year dividend growth streak. MSFT's Q4 FY 2026 revenue surged 17.7% to $90.01 billion, with cloud revenue up 31.6% and commercial backlog soaring 84%. Trading at a 12% discount to a $558 fair value estimate, MSFT offers a potential 21% total return by 2027 and 16% annualized through 2032.
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The August 2026 earnings cycle delivered a clear message: the three US hyperscalers are converting massive AI infrastructure spend into accelerating cloud revenue alongside record capex. Azure grew 43% in Q4 FY2026, AWS posted its fastest growth in 18 quarters at 36.7%, and Google Cloud accelerated to 82% year-over-year. Backlogs at all three ballooned, suggesting the revenue tailwind extends well into 2027. For investors positioning after the earnings reports, these are the three cloud names worth a closer look this month.
Microsoft (MSFT): The Backlog Story Wall Street Is Underestimating
Microsoft (NASDAQ:MSFT | MSFT Price Prediction) trades at $496.88 with a P/E of 28 and a market cap near $3.69 trillion. The stock is up 29.08% over the past month after the July 29 earnings report, but only 3.2% year to date.
Q4 revenue landed at $90 billion, up 18%, with EPS of $4.74. Azure crossed $100 billion in full-year revenue for the first time, and management guided Q1 FY27 Azure growth to approximately 45% in constant currency. The standout figure is commercial remaining performance obligation of $678 billion, up 84%. As CFO Amy Hood put it, "All sequential commercial RPO growth was driven by commitments from customers outside of frontier model companies. And RPO increased 25% when excluding OpenAI." That’s a genuine, diversified enterprise book.
Bull case: With 30 million paid Microsoft 365 Copilot seats and analyst consensus at 95% bullish with a $567.20 target, Microsoft is scaling AI monetization faster than peers can match. Risk: Calendar-year 2026 capex is now guided to approximately $175 billion. If AI demand cools, free cash flow (already -23.19% YoY in Q4) stays pressured.
Amazon (AMZN): AWS Growth Is Re-Accelerating
Amazon (NASDAQ:AMZN) sits at $265.13, up 14.86% year to date and 18.07% over the past year. The P/E of 37 looks rich until you unpack the segment math.
AWS delivered $42.2 billion in Q2 revenue, up 36.7% year over year, with an operating margin of 39% and operating income of $16.6 billion. The segment is now at a $169 billion annualized run rate with a backlog of $496 billion. AI and Chips businesses each cleared $25 billion run rates growing triple digits, powered by Trainium wins with Anthropic and OpenAI plus Graviton adoption at 98% of the top 1,000 EC2 customers.
CEO Andy Jassy went further than usual on the long-term math: "We long believed AWS could become a few hundred billion dollar revenue business and now believe it will be at least double that and very possibly be a trillion dollar annual revenue business for us in time."
Bull case: Q3 guidance of $197 to $202 billion in net sales with operating income of $22.5 to $26.5 billion suggests the AI monetization curve is real. Next report lands October 29, 2026. Risk: Q2 cash capex hit $53.1 billion, driving trailing free cash flow negative and forcing new debt issuance to fund the AWS buildout.
Alphabet (GOOGL): The Cheapest Hyperscaler With the Fastest Cloud
Alphabet (NASDAQ:GOOGL) trades at $346.36, up 10.8% year to date and a striking 71.99% over the last year. Yet the P/E is only 15, the lowest of the three by a wide margin. That valuation gap is the setup.
Q2 FY2026 revenue reached $119.80 billion, up 24.23%, with Google Cloud revenue of $24.77 billion growing 82%. Operating margin expanded to 34%. On the AI adoption front, CEO Sundar Pichai noted "nearly 90% of the Fortune 100 using" Gemini Enterprise, while the Gemini App reached 950 million monthly active users.
Sentiment supports the setup. Alphabet’s composite sentiment score sits at 62.34, bullish with medium confidence, and the 30-day change is +5.62 points. Reddit’s r/wallstreetbets flipped bullish again this week at a sentiment score of 65.
Bull case: Fastest-growing hyperscaler at the lowest multiple, plus 12 straight quarters of double-digit revenue growth. Risk: Q2 free cash flow turned negative $5.86 billion as capex more than doubled year over year, and the company suspended its buyback program in Q2. Leadership turnover at DeepMind briefly weighed on the stock in early August.
What to watch next: Azure’s constant-currency guide of ~45% for Q1 FY27, AWS’s October 29 report, and whether Google Cloud can hold 80%+ growth into Q3. If the backlogs keep converting, the AI capex thesis holds. If not, the free cash flow squeeze becomes the story.
Contact [email protected] for any questions or corrections.
Joho Capital's Founder Trims Tech Exposure While Boosting Industrial and Consumer StakesRobert Karr (Trades, Portfolio), the founder of Joho Capital and a promi
SummaryMicrosoft delivered 18% revenue and 21% operating income growth in FY26, with Azure revenue surpassing $100 billion and Copilot adoption accelerating.Azure growth accelerated to 43% in Q4, with management guiding for approximately 45% constant-currency growth in Q1 FY27, underpinned by robust AI demand.Capital expenditures remain a key risk, exceeding $50 billion in Q1 FY27 and constraining free cash flow growth despite strong operating results.I maintain a strong buy rating with a price target of $777.77, as MSFT's AI monetization and operating leverage outweigh near-term cash conversion risks.Looking for a helping hand in the market? Members of The Aerospace Forum get exclusive ideas and guidance to navigate any climate. Learn More » lcva2/iStock Editorial via Getty Images
In July, I reiterated my strong buy rating for Microsoft Corporation (MSFT) after the stock had sold off on concerns about AI capital expenditures and disruption to the traditional software-as-a-service model. The stock
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New PositionsPershing Square unveiled several new positions in the second quarter, which ended June 30, 2026. Here’s a look at the changes to the portfolio compared to first quarter.
Exited PositionsIn the second quarter, Pershing Square exited positions in the following stocks:
Alphabet Class C (NASDAQ:GOOG)
Alphabet Class A (NASDAQ:GOOGL)
Portfolio ChangesThe second-quarter 13F showed changes in the existing stocks held by Pershing Square. Here are the top decreases in stakes by Pershing Square in the second quarter, by percentage.
Here are the top additions in the second quarter by percentage:
Top HoldingsAt the end of the second quarter, these were the largest stock holdings in the Pershing Square portfolio and their valuation at the time:
Uber: $2.48 billion
Brookfield: $2.45 billion
Microsoft: $2.32 billion
Amazon: $2.04 billion
Howard Hughes: $1.99 billion
Restaurant Brands: $1.87 billion
Meta Platforms: $1.80 billion
Visa: $1.12 billion
Mastercard: $1.09 billion
S&P Global: $1.06 billion
Netflix: $934 million
New stakes in Visa, Mastercard and S&P Global all landed in the top 10 to end the quarter. Ackman’s Magnificent Seven exposure went in two directions: he added to Microsoft and Meta, both top-10 holdings, while cutting Amazon and exiting Alphabet’s Class A and Class C shares outright. Amazon is still a top-five position.
Photo courtesy: T. Schneider / Shutterstock.com
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Megan Brantley of @LikeFolio calls her firm's data on Alphabet's (GOOGL) Google Cloud "the most interesting" of the Mag 7 giant's businesses. The 30-day moving average of demand has fallen slightly while Microsoft (MSFT) Azure and Amazon (AMZN) AWS both grew significantly more.
Arkadios Wealth Advisors increased its holdings in Microsoft Corporation (NASDAQ: MSFT) by 11.7% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 237,463 shares of the software giant's stock after buying an additional 24,778 shares during the period. Microsoft comprises approximately 1.4%
Arete Wealth Advisors LLC lessened its position in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 8.2% in the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 47,897 shares of the software giant’s stock after selling 4,281 shares during the quarter. Microsoft makes up about 1.2% of Arete Wealth Advisors LLC’s holdings, making the stock its 19th largest position. Arete Wealth Advisors LLC’s holdings in Microsoft were worth $17,740,000 at the end of the most recent quarter.
Several other institutional investors and hedge funds have also made changes to their positions in the business. Norges Bank purchased a new position in shares of Microsoft during the 4th quarter worth approximately $50,664,631,000. Auto Owners Insurance Co lifted its stake in Microsoft by 56,160.8% in the 4th quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant’s stock valued at $29,073,486,000 after buying an additional 60,009,531 shares in the last quarter. Nuveen LLC acquired a new stake in Microsoft during the 1st quarter valued at $18,733,827,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in Microsoft by 500.0% during the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 59,543,261 shares of the software giant’s stock valued at $30,840,432,000 after buying an additional 49,618,571 shares during the last quarter. Finally, Laurel Wealth Advisors LLC increased its position in Microsoft by 49,640.3% during the second quarter. Laurel Wealth Advisors LLC now owns 29,967,038 shares of the software giant’s stock worth $14,905,904,000 after buying an additional 29,906,791 shares in the last quarter. 71.13% of the stock is currently owned by hedge funds and other institutional investors.
Analysts Set New Price Targets
A number of equities analysts have recently weighed in on MSFT shares. Raymond James Financial cut Microsoft from a “market perform” rating to a “market perform” rating in a report on Tuesday, May 5th. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating on shares of Microsoft in a research report on Monday, July 20th. Benchmark reissued a “buy” rating on shares of Microsoft in a research note on Friday, July 24th. Wolfe Research restated an “outperform” rating and issued a $550.00 target price on shares of Microsoft in a report on Thursday, July 30th. Finally, Oppenheimer reaffirmed an “outperform” rating and set a $515.00 price target on shares of Microsoft in a research note on Wednesday, July 22nd. Forty-two research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $560.27.
View Our Latest Research Report on MSFT
Microsoft Price Performance
Shares of NASDAQ:MSFT opened at $496.88 on Friday. The company has a market cap of $3.69 trillion, a P/E ratio of 27.67, a P/E/G ratio of 1.59 and a beta of 1.11. The business has a fifty day simple moving average of $409.70 and a 200-day simple moving average of $407.88. Microsoft Corporation has a 52 week low of $349.20 and a 52 week high of $553.72. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07.
Microsoft (NASDAQ:MSFT – Get Free Report) last released its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, topping 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 firm had revenue of $90.01 billion for the quarter, compared to the consensus estimate of $87.62 billion. During the same period in the prior year, the business posted $3.65 earnings per share. The firm’s revenue for the quarter was up 17.7% compared to the same quarter last year. Equities research analysts forecast that Microsoft Corporation will post 19.58 EPS for the current year.
Microsoft Dividend Announcement
The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be issued a dividend of $0.91 per share. This represents a $3.64 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Thursday, August 20th. Microsoft’s dividend payout ratio is presently 20.27%.
Microsoft News Summary
Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Pershing Square’s Bill Ackman reaffirmed his bullish Azure thesis, arguing that continued capacity investment and Microsoft 365’s embedded customer base can support high-teens earnings growth. Microsoft Stock Rises as Ackman Reaffirms Azure Bet
Positive Sentiment: JPMorgan raised its Microsoft price target to $625, citing accelerating Copilot adoption and infrastructure growth. Wells Fargo also maintained an overweight rating and lifted its target to $700, reinforcing the view that the stock’s AI-driven recovery has further upside. JPMorgan Raises Microsoft Price Target
Positive Sentiment: Microsoft began gradually combining its consumer and enterprise Copilot applications into a unified AI platform. The planned “super app” could improve user adoption, cross-selling and Microsoft’s competitive position against ChatGPT, Gemini and Claude. Microsoft Unifies Consumer and Enterprise Copilot
Positive Sentiment: Microsoft accepted IREN’s first AI data-center deployment under a $9.7 billion cloud agreement. The milestone supports Azure’s ability to secure additional computing capacity as AI infrastructure demand remains strong. IREN Hands Microsoft Its First AI Cloud Deployment
Neutral Sentiment: Microsoft is reportedly closing or restructuring numerous China offices and joint ventures, while retaining an Azure-linked presence. The move may reduce geopolitical exposure but could also limit access to the Chinese market. Microsoft Retreats in China
Negative Sentiment: A report said Microsoft plans to cut carbon-removal purchases while AI-related emissions rise, creating potential reputational and environmental concerns. Microsoft Carbon Removal Purchases Report
Insider Activity
In related news, EVP Takeshi Numoto sold 4,810 shares of the company’s stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the completion of the transaction, the executive vice president 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 sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Judson Althoff sold 15,500 shares of the company’s stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $460.99, for a total transaction of $7,145,345.00. Following the transaction, the chief executive officer directly owned 110,477 shares of the company’s stock, valued at $50,928,792.23. This trade represents a 12.30% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 37,310 shares of company stock worth $17,256,219. Insiders own 0.03% of the company’s stock.
Microsoft Profile
(Free Report)
Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.
Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).
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Alphabet (GOOG +0.46%) (GOOGL +0.82%) and Microsoft (MSFT +0.90%) are two of the biggest tech giants on the market, and the third and fourth-largest companies in the world. Each has posted terrific results in its most recent quarter, but which one is doing better?
Let's take a look at which one of these stocks makes the most sense for your investment dollars, or if they're both worth buying now.
Image source: Getty Images.
The businesses are similar Microsoft has built a software empire used by businesses and consumers around the globe. Microsoft also has a growing artificial intelligence business with its Copilot application, which allows companies to input internal data without fear of it leaking into the outside world.
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Alphabet's business is more advertising-focused, with the Google Search engine headlining its primary business. Advertising has been strong lately, but it tends to decline during times of economic uncertainty. Overall, Microsoft's software business is more stable, but Alphabet's business can grow faster during the good times.
Both also have a cloud computing business unit, which gives each massive exposure to rising AI computing needs. This is also the primary reason why each is spending hundreds of billions of dollars on data centers, and the payoff is starting to show up for those major investments.
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I think you're splitting hairs as to which company has the better business model. As a result, I'm giving this category a tie.
Winner: Tie
Alphabet is growing faster From a growth standpoint, Alphabet has the edge. In the second quarter, Alphabet's revenue increased by 24% year over year, headlined by its booming Google Cloud division, which saw 82% revenue growth. Microsoft posted an admirable 18% revenue growth, with Azure (its cloud computing division) seeing 43% growth.
Comparing earnings-per-share growth isn't easy, as Alphabet reported a huge gain thanks to its long-term investment in Space Exploration Technologies (SpaceX). As a result, the better metric to look at here is operating income growth. During the quarter, Alphabet's operating income rose 30%, while Microsoft's increased by 18%.
With Alphabet winning on profit and revenue growth, it's impossible to declare Microsoft the winner.
Winner: Alphabet
Valuing these stocks isn't easy Thanks to Alphabet's SpaceX investment gains, its price-to-earnings ratio is a poor measure for valuing the company. Additionally, both are spending a ton of money on data center build-outs, so free cash flow is also a bad metric to use.
Instead, I think using operating profits is a smarter way to value these two. For the better part of the past three years, Microsoft has always maintained a premium over Alphabet. That flip-flopped late last year, and now Alphabet is the more expensive stock.
GOOG Operating PE Ratio data by YCharts
As Microsoft is slightly cheaper, I think it takes the cake here, as Alphabet is still trading at an elevated valuation, even if it deserves it.
Winner: Microsoft
Which is the better stock to buy? With the analysis ending in a tie, it would be easy to declare both stocks winners. But that's no fun. Which stock do I think is the best? I think it's clearly Alphabet.
While it may be more expensive, its cloud computing division is growing far faster than Microsoft's. Furthermore, its growth rate is accelerating rapidly, while Microsoft's has only increased slightly in the quarter. For reference, Azure's growth rate went from 40% in Q3 to 43% in Q4 in fiscal year 2026. Google Cloud went from 34% in Q3 2025 to 48% in Q4 2025, then to 63% in Q1 2026, and to 82% in Q2 2026.
There's clearly something special about Google Cloud compared to Azure, and with it becoming a major part of Alphabet's business, I think it will deliver superior stock performance relative to Microsoft over the next five years.
Bull Harbor Capital LLC bought a new position in Microsoft Corporation (NASDAQ: MSFT) in the undefined quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm bought 16,323 shares of the software giant's stock, valued at approximately $6,042,000. Microsoft accounts for approximately 1.6% of Bull Harbor Capital
Encore Global Management LP purchased a new position in Microsoft Corporation (NASDAQ:MSFT – Free Report) during the first quarter, according to its most recent Form 13F filing with the SEC. The fund purchased 12,950 shares of the software giant’s stock, valued at approximately $4,794,000. Microsoft makes up about 3.3% of Encore Global Management LP’s investment portfolio, making the stock its 3rd largest holding.
A number of other institutional investors have also added to or reduced their stakes in the stock. Markel Group Inc. lifted its holdings in shares of Microsoft by 0.4% in the 1st quarter. Markel Group Inc. now owns 537,630 shares of the software giant’s stock valued at $199,014,000 after acquiring an additional 1,950 shares during the last quarter. Bessemer Group Inc. increased its stake in Microsoft by 8.4% during the first quarter. Bessemer Group Inc. now owns 6,921,677 shares of the software giant’s stock worth $2,562,197,000 after acquiring an additional 537,634 shares during the last quarter. Taylor Securities Services Inc. purchased a new stake in Microsoft during the fourth quarter valued at approximately $2,616,000. Werba Rubin Papier Wealth Management raised its position in Microsoft by 15.7% during the fourth quarter. Werba Rubin Papier Wealth Management now owns 12,492 shares of the software giant’s stock valued at $6,041,000 after purchasing an additional 1,698 shares during the period. Finally, Harel Insurance Investments & Financial Services Ltd. lifted its stake in shares of Microsoft by 138.8% in the 1st quarter. Harel Insurance Investments & Financial Services Ltd. now owns 1,356,359 shares of the software giant’s stock valued at $502,077,000 after purchasing an additional 788,297 shares during the last quarter. 71.13% of the stock is owned by hedge funds and other institutional investors.
Key Microsoft News Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Pershing Square’s Bill Ackman reaffirmed his bullish Azure thesis, arguing that continued capacity investment and Microsoft 365’s embedded customer base can support high-teens earnings growth. Microsoft Stock Rises as Ackman Reaffirms Azure Bet Positive Sentiment: JPMorgan raised its Microsoft price target to $625, citing accelerating Copilot adoption and infrastructure growth. Wells Fargo also maintained an overweight rating and lifted its target to $700, reinforcing the view that the stock’s AI-driven recovery has further upside. JPMorgan Raises Microsoft Price Target Positive Sentiment: Microsoft began gradually combining its consumer and enterprise Copilot applications into a unified AI platform. The planned “super app” could improve user adoption, cross-selling and Microsoft’s competitive position against ChatGPT, Gemini and Claude. Microsoft Unifies Consumer and Enterprise Copilot Positive Sentiment: Microsoft accepted IREN’s first AI data-center deployment under a $9.7 billion cloud agreement. The milestone supports Azure’s ability to secure additional computing capacity as AI infrastructure demand remains strong. IREN Hands Microsoft Its First AI Cloud Deployment Neutral Sentiment: Microsoft is reportedly closing or restructuring numerous China offices and joint ventures, while retaining an Azure-linked presence. The move may reduce geopolitical exposure but could also limit access to the Chinese market. Microsoft Retreats in China Negative Sentiment: A report said Microsoft plans to cut carbon-removal purchases while AI-related emissions rise, creating potential reputational and environmental concerns. Microsoft Carbon Removal Purchases Report Insider Buying and Selling In related news, EVP Takeshi Numoto sold 4,810 shares of the business’s stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the completion of the transaction, the executive vice president owned 42,677 shares in the company, valued at $21,188,276.96. The trade was a 10.13% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Judson Althoff sold 15,500 shares of the stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $460.99, for a total transaction of $7,145,345.00. Following the sale, the chief executive officer directly owned 110,477 shares of the company’s stock, valued at $50,928,792.23. The trade was a 12.30% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 37,310 shares of company stock worth $17,256,219. Insiders own 0.03% of the company’s stock.
Analyst Upgrades and Downgrades Several equities analysts have recently weighed in on MSFT shares. HSBC cut their target price on Microsoft from $593.00 to $571.00 in a research report on Thursday, April 30th. Arete Research lifted their price objective on shares of Microsoft from $730.00 to $870.00 and gave the stock a “buy” rating in a research note on Tuesday, May 5th. Royal Bank Of Canada reiterated an “outperform” rating and set a $640.00 price objective on shares of Microsoft in a research report on Thursday, July 30th. Morgan Stanley reissued an “overweight” rating on shares of Microsoft in a research note on Thursday, July 30th. Finally, DZ Bank restated a “buy” rating on shares of Microsoft in a report on Thursday, April 30th. Forty-two equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat, Microsoft presently has an average rating of “Moderate Buy” and a consensus price target of $560.27.
Get Our Latest Analysis on MSFT
Microsoft Trading Up 0.9% MSFT opened at $496.88 on Friday. 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 cap of $3.69 trillion, a price-to-earnings ratio of 27.67, a PEG ratio of 1.59 and a beta of 1.11. Microsoft Corporation has a 12 month low of $349.20 and a 12 month high of $553.72. The stock has a fifty day moving average price of $409.70 and a 200-day moving average price of $407.88.
Microsoft (NASDAQ:MSFT – Get Free Report) last issued 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 company had revenue of $90.01 billion for the quarter, compared to the consensus estimate 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 quarter last year, the company earned $3.65 earnings per share. As a group, equities research analysts anticipate that Microsoft Corporation will post 19.58 earnings per share for the current fiscal year.
Microsoft Announces Dividend The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be given a $0.91 dividend. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $3.64 dividend on an annualized basis and a dividend yield of 0.7%. Microsoft’s payout ratio is presently 20.27%.
Microsoft Profile (Free Report)
Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.
Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).
Read More Five stocks we like better than Microsoft Asian Market Circuit Breakers Hit Stocks, Not AI Demand Riot Platforms Re-Wires the Ledger for a $9B AI Power Play Nebius Just Exploded 34% on Blowout Earnings—Is It Time to Buy? Joby’s Defense Pivot Accelerates With $500M Resonant Sciences Deal 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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Constant Guidance Financial LLC lessened its position in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 61.6% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 2,643 shares of the software giant’s stock after selling 4,240 shares during the quarter. Microsoft makes up about 0.7% of Constant Guidance Financial LLC’s investment portfolio, making the stock its 17th largest position. Constant Guidance Financial LLC’s holdings in Microsoft were worth $978,000 at the end of the most recent reporting period.
A number of other institutional investors and hedge funds have also modified their holdings of the company. Longfellow Investment Management Co. LLC lifted its holdings in shares of Microsoft by 51.3% during the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock worth $29,000 after acquiring an additional 20 shares during the period. Bernzott Capital Advisors bought a new stake in Microsoft in the fourth quarter valued at about $34,000. Timmons Wealth Management LLC acquired a new position in Microsoft in the fourth quarter worth about $36,000. Fairway Wealth LLC lifted its stake in Microsoft by 287.0% during the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock worth $43,000 after purchasing an additional 66 shares during the period. Finally, LSV Asset Management bought a new position in Microsoft during the fourth quarter worth about $44,000. 71.13% of the stock is currently owned by institutional investors.
Microsoft News Summary Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Pershing Square’s Bill Ackman reaffirmed his bullish Azure thesis, arguing that continued capacity investment and Microsoft 365’s embedded customer base can support high-teens earnings growth. Microsoft Stock Rises as Ackman Reaffirms Azure Bet Positive Sentiment: JPMorgan raised its Microsoft price target to $625, citing accelerating Copilot adoption and infrastructure growth. Wells Fargo also maintained an overweight rating and lifted its target to $700, reinforcing the view that the stock’s AI-driven recovery has further upside. JPMorgan Raises Microsoft Price Target Positive Sentiment: Microsoft began gradually combining its consumer and enterprise Copilot applications into a unified AI platform. The planned “super app” could improve user adoption, cross-selling and Microsoft’s competitive position against ChatGPT, Gemini and Claude. Microsoft Unifies Consumer and Enterprise Copilot Positive Sentiment: Microsoft accepted IREN’s first AI data-center deployment under a $9.7 billion cloud agreement. The milestone supports Azure’s ability to secure additional computing capacity as AI infrastructure demand remains strong. IREN Hands Microsoft Its First AI Cloud Deployment Neutral Sentiment: Microsoft is reportedly closing or restructuring numerous China offices and joint ventures, while retaining an Azure-linked presence. The move may reduce geopolitical exposure but could also limit access to the Chinese market. Microsoft Retreats in China Negative Sentiment: A report said Microsoft plans to cut carbon-removal purchases while AI-related emissions rise, creating potential reputational and environmental concerns. Microsoft Carbon Removal Purchases Report Microsoft Price Performance Shares of MSFT stock opened at $496.88 on Friday. Microsoft Corporation has a 52 week low of $349.20 and a 52 week high of $553.72. The stock has a market capitalization of $3.69 trillion, a PE ratio of 27.67, a PEG ratio of 1.59 and a beta of 1.11. 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’s fifty day moving average is $409.70 and its 200-day moving average is $407.88.
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 (EPS) for the quarter, beating analysts’ consensus estimates of $4.24 by $0.50. The business had revenue of $90.01 billion during the quarter, compared to analysts’ expectations 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 business posted $3.65 earnings per share. Equities research analysts expect that Microsoft Corporation will post 19.58 EPS for the current fiscal year.
Microsoft Dividend Announcement The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be paid a $0.91 dividend. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $3.64 dividend on an annualized basis and a dividend yield of 0.7%. Microsoft’s payout ratio is currently 20.27%.
Analysts Set New Price Targets MSFT has been the subject of a number of recent research reports. China Renaissance dropped their target price on Microsoft from $630.00 to $550.00 and set a “buy” rating for the company in a report on Monday, May 4th. Piper Sandler boosted their price target on Microsoft from $540.00 to $550.00 and gave the company an “overweight” rating in a research note on Tuesday, July 28th. Barclays dropped their price objective on Microsoft from $545.00 to $512.00 and set an “overweight” rating for the company in a research note on Thursday, July 30th. Evercore set a $528.00 price objective on Microsoft in a report on Thursday, July 30th. Finally, HSBC reduced their target price on shares of Microsoft from $593.00 to $571.00 in a research note on Thursday, April 30th. Forty-two research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Microsoft currently has an average rating of “Moderate Buy” and a consensus price target of $560.27.
Read Our Latest Analysis on MSFT
Insider Buying and Selling In other news, CEO Judson Althoff sold 15,500 shares of the stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $460.99, for a total transaction of $7,145,345.00. Following the sale, the chief executive officer directly owned 110,477 shares of the company’s stock, valued at $50,928,792.23. This represents a 12.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Takeshi Numoto sold 4,810 shares of the firm’s stock in a transaction that occurred on Tuesday, August 4th. The shares were 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 of the company’s stock, valued at approximately $21,188,276.96. This represents a 10.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 37,310 shares of company stock worth $17,256,219 over the last quarter. 0.03% of the stock is owned by company insiders.
Microsoft Profile (Free Report)
Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.
Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).
Read More Five stocks we like better than Microsoft Asian Market Circuit Breakers Hit Stocks, Not AI Demand Riot Platforms Re-Wires the Ledger for a $9B AI Power Play Nebius Just Exploded 34% on Blowout Earnings—Is It Time to Buy? Joby’s Defense Pivot Accelerates With $500M Resonant Sciences Deal 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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« PREVIOUS HEADLINEEncore Global Management LP Buys New Shares in Microsoft Corporation $MSFT
NEXT HEADLINE »Microsoft Corporation $MSFT Shares Sold by Adalta Capital Management LLC
Adalta Capital Management LLC trimmed its holdings in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 12.7% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 39,474 shares of the software giant’s stock after selling 5,754 shares during the quarter. Microsoft comprises 7.0% of Adalta Capital Management LLC’s portfolio, making the stock its largest holding. Adalta Capital Management LLC’s holdings in Microsoft were worth $14,612,000 as of its most recent SEC filing.
Several other institutional investors and hedge funds also recently modified their holdings of the business. Vanguard Group Inc. grew its stake in shares of Microsoft by 2.3% in the 4th quarter. Vanguard Group Inc. now owns 717,942,580 shares of the software giant’s stock worth $347,211,391,000 after purchasing an additional 15,955,898 shares during the last quarter. State Street Corp raised its position in Microsoft by 2.1% during the fourth quarter. State Street Corp now owns 306,150,608 shares of the software giant’s stock valued at $148,060,557,000 after acquiring an additional 6,388,930 shares in the last quarter. Geode Capital Management LLC raised its holdings in shares of Microsoft by 1.1% during the 4th quarter. Geode Capital Management LLC now owns 182,618,400 shares of the software giant’s stock valued at $88,056,019,000 after purchasing an additional 1,911,142 shares in the last quarter. Morgan Stanley raised its holdings in shares of Microsoft by 0.8% during the 4th quarter. Morgan Stanley now owns 121,220,561 shares of the software giant’s stock valued at $58,624,690,000 after purchasing an additional 980,439 shares in the last quarter. Finally, Norges Bank acquired a new stake in shares of Microsoft in the 4th quarter valued at $50,664,631,000. Institutional investors own 71.13% of the company’s stock.
Insider Transactions at Microsoft In other news, CEO Judson Althoff sold 15,500 shares of Microsoft stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $460.99, for a total transaction of $7,145,345.00. Following the completion of the sale, the chief executive officer owned 110,477 shares in the company, valued at $50,928,792.23. The trade was a 12.30% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, EVP Takeshi Numoto sold 4,810 shares of the firm’s stock in a transaction on 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 completion of the transaction, 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 ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 37,310 shares of company stock valued at $17,256,219 over the last ninety days. 0.03% of the stock is currently owned by company insiders.
Key Microsoft News Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Pershing Square’s Bill Ackman reaffirmed his bullish Azure thesis, arguing that continued capacity investment and Microsoft 365’s embedded customer base can support high-teens earnings growth. Microsoft Stock Rises as Ackman Reaffirms Azure Bet Positive Sentiment: JPMorgan raised its Microsoft price target to $625, citing accelerating Copilot adoption and infrastructure growth. Wells Fargo also maintained an overweight rating and lifted its target to $700, reinforcing the view that the stock’s AI-driven recovery has further upside. JPMorgan Raises Microsoft Price Target Positive Sentiment: Microsoft began gradually combining its consumer and enterprise Copilot applications into a unified AI platform. The planned “super app” could improve user adoption, cross-selling and Microsoft’s competitive position against ChatGPT, Gemini and Claude. Microsoft Unifies Consumer and Enterprise Copilot Positive Sentiment: Microsoft accepted IREN’s first AI data-center deployment under a $9.7 billion cloud agreement. The milestone supports Azure’s ability to secure additional computing capacity as AI infrastructure demand remains strong. IREN Hands Microsoft Its First AI Cloud Deployment Neutral Sentiment: Microsoft is reportedly closing or restructuring numerous China offices and joint ventures, while retaining an Azure-linked presence. The move may reduce geopolitical exposure but could also limit access to the Chinese market. Microsoft Retreats in China Negative Sentiment: A report said Microsoft plans to cut carbon-removal purchases while AI-related emissions rise, creating potential reputational and environmental concerns. Microsoft Carbon Removal Purchases Report Analyst Upgrades and Downgrades MSFT has been the subject of a number of recent analyst reports. Barclays decreased their target price on Microsoft from $545.00 to $512.00 and set an “overweight” rating for the company in a research report on Thursday, July 30th. DZ Bank reiterated a “buy” rating on shares of Microsoft in a report on Thursday, April 30th. BMO Capital Markets raised their price target on Microsoft from $500.00 to $515.00 and gave the company an “outperform” rating in a research report on Thursday, July 30th. BNP Paribas Exane dropped their price objective on Microsoft from $556.00 to $555.00 and set an “outperform” rating on the stock in a research note on Friday, May 1st. Finally, Piper Sandler boosted their price objective on Microsoft from $540.00 to $550.00 and gave the stock an “overweight” rating in a research report on Tuesday, July 28th. Forty-two analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $560.27.
Get Our Latest Stock Analysis on Microsoft
Microsoft Stock Performance NASDAQ:MSFT opened at $496.88 on Friday. The firm has a 50-day moving average price of $409.70 and a 200 day moving average price of $407.88. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07. The firm has a market capitalization of $3.69 trillion, a PE ratio of 27.67, a price-to-earnings-growth ratio of 1.59 and a beta of 1.11. 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 posted its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, topping the consensus estimate of $4.24 by $0.50. The company 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 company’s revenue was up 17.7% on a year-over-year basis. During the same quarter last year, the business posted $3.65 earnings per share. Research analysts anticipate that Microsoft Corporation will post 19.58 earnings per share for the current fiscal year.
Microsoft Dividend Announcement The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be issued a $0.91 dividend. This represents a $3.64 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend is Thursday, August 20th. Microsoft’s payout ratio is currently 20.27%.
Microsoft Company Profile (Free Report)
Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.
Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).
Further Reading Five stocks we like better than Microsoft Asian Market Circuit Breakers Hit Stocks, Not AI Demand Riot Platforms Re-Wires the Ledger for a $9B AI Power Play Nebius Just Exploded 34% on Blowout Earnings—Is It Time to Buy? Joby’s Defense Pivot Accelerates With $500M Resonant Sciences Deal
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.
Amundi lifted its position in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 30.8% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 41,675,076 shares of the software giant’s stock after buying an additional 9,814,598 shares during the quarter. Microsoft comprises approximately 4.2% of Amundi’s holdings, making the stock its 4th biggest position. Amundi owned approximately 0.56% of Microsoft worth $15,426,862,000 as of its most recent filing with the Securities and Exchange Commission.
Other institutional investors have also added to or reduced their stakes in the company. Longfellow Investment Management Co. LLC lifted its stake in Microsoft by 51.3% during the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock worth $29,000 after purchasing an additional 20 shares during the last quarter. Bernzott Capital Advisors bought a new position in Microsoft in the fourth quarter valued at about $34,000. Timmons Wealth Management LLC acquired a new position in Microsoft during the fourth quarter worth about $36,000. Fairway Wealth LLC boosted its stake in shares of Microsoft by 287.0% in the 4th quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock valued at $43,000 after purchasing an additional 66 shares in the last quarter. Finally, University of Illinois Foundation bought a new stake in shares of Microsoft during the 2nd quarter valued at approximately $50,000. 71.13% of the stock is currently owned by institutional investors and hedge funds.
More Microsoft News Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Pershing Square’s Bill Ackman reaffirmed his bullish Azure thesis, arguing that continued capacity investment and Microsoft 365’s embedded customer base can support high-teens earnings growth. Microsoft Stock Rises as Ackman Reaffirms Azure Bet Positive Sentiment: JPMorgan raised its Microsoft price target to $625, citing accelerating Copilot adoption and infrastructure growth. Wells Fargo also maintained an overweight rating and lifted its target to $700, reinforcing the view that the stock’s AI-driven recovery has further upside. JPMorgan Raises Microsoft Price Target Positive Sentiment: Microsoft began gradually combining its consumer and enterprise Copilot applications into a unified AI platform. The planned “super app” could improve user adoption, cross-selling and Microsoft’s competitive position against ChatGPT, Gemini and Claude. Microsoft Unifies Consumer and Enterprise Copilot Positive Sentiment: Microsoft accepted IREN’s first AI data-center deployment under a $9.7 billion cloud agreement. The milestone supports Azure’s ability to secure additional computing capacity as AI infrastructure demand remains strong. IREN Hands Microsoft Its First AI Cloud Deployment Neutral Sentiment: Microsoft is reportedly closing or restructuring numerous China offices and joint ventures, while retaining an Azure-linked presence. The move may reduce geopolitical exposure but could also limit access to the Chinese market. Microsoft Retreats in China Negative Sentiment: A report said Microsoft plans to cut carbon-removal purchases while AI-related emissions rise, creating potential reputational and environmental concerns. Microsoft Carbon Removal Purchases Report Insider Buying and Selling at Microsoft In related news, CEO Judson Althoff sold 10,000 shares of the company’s stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the sale, the chief executive officer 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. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, EVP Takeshi Numoto sold 4,810 shares of the 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 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 37,310 shares of company stock worth $17,256,219. Corporate insiders own 0.03% of the company’s stock.
Wall Street Analysts Forecast Growth A number of equities research analysts recently weighed in on the company. Arete Research boosted their price objective on Microsoft from $730.00 to $870.00 and gave the stock a “buy” rating in a research report on Tuesday, May 5th. Truist Financial restated a “buy” rating and set a $575.00 price target on shares of Microsoft in a report on Wednesday, July 22nd. BMO Capital Markets upped their price objective on Microsoft from $500.00 to $515.00 and gave the company an “outperform” rating in a research note on Thursday, July 30th. Evercore set a $528.00 price objective on shares of Microsoft in a report on Thursday, July 30th. Finally, Argus reduced their target price on shares of Microsoft from $620.00 to $510.00 and set a “buy” rating on the stock in a report on Friday, July 10th. Forty-two equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $560.27.
Read Our Latest Analysis on MSFT
Microsoft Stock Performance Shares of MSFT stock opened at $496.88 on Friday. The firm has a 50 day moving average of $409.70 and a 200-day moving average of $407.88. The company has a market cap of $3.69 trillion, a price-to-earnings ratio of 27.67, a price-to-earnings-growth ratio of 1.59 and a beta of 1.11. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07. Microsoft Corporation has a 52 week low of $349.20 and a 52 week high of $553.72.
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 for the quarter, topping analysts’ consensus estimates of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The business had revenue of $90.01 billion for the quarter, compared to the consensus estimate of $87.62 billion. During the same period in the prior year, the business earned $3.65 EPS. The firm’s revenue for the quarter was up 17.7% on a year-over-year basis. On average, equities analysts forecast that Microsoft Corporation will post 19.58 earnings per share for the current year.
Microsoft Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be given a $0.91 dividend. This represents a $3.64 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend is Thursday, August 20th. Microsoft’s dividend payout ratio (DPR) is currently 20.27%.
Microsoft Profile (Free Report)
Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.
Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).
Featured Articles Five stocks we like better than Microsoft Asian Market Circuit Breakers Hit Stocks, Not AI Demand Riot Platforms Re-Wires the Ledger for a $9B AI Power Play Nebius Just Exploded 34% on Blowout Earnings—Is It Time to Buy? Joby’s Defense Pivot Accelerates With $500M Resonant Sciences Deal
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.
« PREVIOUS HEADLINEMicrosoft Corporation $MSFT Shares Sold by Adalta Capital Management LLC
NEXT HEADLINE »EverSource Wealth Advisors LLC Buys 26,285 Shares of Microsoft Corporation $MSFT
EverSource Wealth Advisors LLC grew its stake in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 38.0% during the 1st quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 95,488 shares of the software giant’s stock after buying an additional 26,285 shares during the quarter. Microsoft accounts for 1.1% of EverSource Wealth Advisors LLC’s investment portfolio, making the stock its 14th biggest position. EverSource Wealth Advisors LLC’s holdings in Microsoft were worth $35,347,000 as of its most recent filing with the SEC.
A number of other hedge funds also recently made changes to their positions in MSFT. Norges Bank bought a new position in shares of Microsoft during the 4th quarter valued at about $50,664,631,000. Auto Owners Insurance Co lifted its position in Microsoft by 56,160.8% in 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. Nuveen LLC bought a new stake in Microsoft in the 1st quarter worth approximately $18,733,827,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Microsoft by 500.0% in the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 59,543,261 shares of the software giant’s stock worth $30,840,432,000 after buying an additional 49,618,571 shares in the last quarter. Finally, Laurel Wealth Advisors LLC grew its position in Microsoft by 49,640.3% during the second quarter. Laurel Wealth Advisors LLC now owns 29,967,038 shares of the software giant’s stock valued at $14,905,904,000 after acquiring an additional 29,906,791 shares during the last quarter. 71.13% of the stock is owned by institutional investors.
Microsoft Price Performance
Shares of Microsoft stock opened at $496.88 on Friday. The company’s fifty day simple moving average is $409.70 and its two-hundred day simple moving average is $407.88. Microsoft Corporation has a 12-month low of $349.20 and a 12-month high of $553.72. The firm has a market cap of $3.69 trillion, a PE ratio of 27.67, a price-to-earnings-growth ratio of 1.59 and a beta of 1.11. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07.
Microsoft (NASDAQ:MSFT – Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, beating the consensus estimate of $4.24 by $0.50. The firm had revenue of $90.01 billion during the quarter, compared to the consensus estimate of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The company’s quarterly revenue was up 17.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $3.65 earnings per share. As a group, equities analysts expect that Microsoft Corporation will post 19.58 EPS for the current year.
Microsoft Announces Dividend
The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be given a dividend of $0.91 per share. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $3.64 dividend on an annualized basis and a yield of 0.7%. Microsoft’s dividend payout ratio is presently 20.27%.
Insider Buying and Selling
In other Microsoft news, EVP Takeshi Numoto sold 4,810 shares of the stock in a transaction that occurred on 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 completion of the sale, the executive vice president owned 42,677 shares in the company, valued at approximately $21,188,276.96. This trade represents a 10.13% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Judson Althoff sold 15,500 shares of Microsoft stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $460.99, for a total value of $7,145,345.00. Following the completion of the sale, the chief executive officer owned 110,477 shares in the company, valued at approximately $50,928,792.23. This represents a 12.30% 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 37,310 shares of company stock valued at $17,256,219 in the last ninety days. 0.03% of the stock is currently owned by corporate insiders.
Wall Street Analysts Forecast Growth
A number of equities research analysts have recently weighed in on the stock. Tigress Financial boosted their price objective on shares of Microsoft from $680.00 to $690.00 and gave the stock a “buy” rating in a report on Wednesday, August 5th. Jefferies Financial Group reiterated a “buy” rating on shares of Microsoft in a research report on Monday, May 4th. Royal Bank Of Canada reissued an “outperform” rating and issued a $640.00 price target on shares of Microsoft in a research note on Thursday, July 30th. UBS Group set a $525.00 price objective on Microsoft in a research note on Thursday, July 30th. Finally, Raymond James Financial lowered Microsoft from a “market perform” rating to a “market perform” rating in a research note on Tuesday, May 5th. Forty-two analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat, Microsoft currently has a consensus rating of “Moderate Buy” and a consensus price target of $560.27.
View Our Latest Analysis on Microsoft
Trending Headlines about Microsoft
Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Pershing Square’s Bill Ackman reaffirmed his bullish Azure thesis, arguing that continued capacity investment and Microsoft 365’s embedded customer base can support high-teens earnings growth. Microsoft Stock Rises as Ackman Reaffirms Azure Bet
Positive Sentiment: JPMorgan raised its Microsoft price target to $625, citing accelerating Copilot adoption and infrastructure growth. Wells Fargo also maintained an overweight rating and lifted its target to $700, reinforcing the view that the stock’s AI-driven recovery has further upside. JPMorgan Raises Microsoft Price Target
Positive Sentiment: Microsoft began gradually combining its consumer and enterprise Copilot applications into a unified AI platform. The planned “super app” could improve user adoption, cross-selling and Microsoft’s competitive position against ChatGPT, Gemini and Claude. Microsoft Unifies Consumer and Enterprise Copilot
Positive Sentiment: Microsoft accepted IREN’s first AI data-center deployment under a $9.7 billion cloud agreement. The milestone supports Azure’s ability to secure additional computing capacity as AI infrastructure demand remains strong. IREN Hands Microsoft Its First AI Cloud Deployment
Neutral Sentiment: Microsoft is reportedly closing or restructuring numerous China offices and joint ventures, while retaining an Azure-linked presence. The move may reduce geopolitical exposure but could also limit access to the Chinese market. Microsoft Retreats in China
Negative Sentiment: A report said Microsoft plans to cut carbon-removal purchases while AI-related emissions rise, creating potential reputational and environmental concerns. Microsoft Carbon Removal Purchases Report
Microsoft Company Profile
(Free Report)
Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.
Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).
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Empire Financial Management Company LLC lessened its stake in shares of Microsoft Corporation (NASDAQ: MSFT) by 6.9% in the undefined quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 25,216 shares of the software giant's stock after selling 1,874 shares during the quarter. Microsoft
Microsoft delivered a decisive Q4 and FY2026, accelerating revenue growth to 18% and expanding Azure past $100 billion with 41% growth. MSFT's AI monetization is now proven, with commercial backlog swelling to $678 billion and $2.70 in future revenue booked per $1 of CapEx. Shares remain undervalued at under 21x FY2028 EPS, with projected EPS compounding ~20% annually and a robust, rising dividend supported by a 20% payout ratio.
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Reuters reported Thursday that Microsoft (NASDAQ:MSFT | MSFT Price Prediction) has closed at least 15 branch offices and joint ventures in China over the past five years, a deliberate downsizing that accelerated in 2026. A Microsoft spokesperson told Reuters the company “remains committed to the Chinese market” and “has no current plans to exit.”. What is underway is a five-year partial retreat across four distinct fronts, each with different drivers.
At least 15 branches and JVs have shut, per corporate filings Reuters reviewed. Wicresoft, Microsoft’s original 2002 China joint venture, began winding down its China operations in April 2025, with an estimated 2,000 job losses, and appears to be counted within the 15.
Manufacturing is the second front. Microsoft is moving the majority of Surface and Xbox hardware production, plus data center server manufacturing, out of China, targeting at least 80% of server-related materials sourced outside the country. Third is retail: Microsoft closed all authorized physical retail stores in mainland China in 2024, shifting to online and third-party partners. Fourth is headcount. Around June 2026, Microsoft cut an estimated 200 to 400 Azure cloud jobs in China, its third downsizing round in two years, with affected employees departing around July 6, 2026, with severance up to seven months’ pay.
The pressure is structural. Since 2017, Beijing has steered state buyers toward domestic software. Reuters reviewed six Chinese government procurement guides published between December 2023 and May 2026; five did not recommend Microsoft at all. Paul Triolo of DGA-Albright Stonebridge Group told Reuters that non-compliance “did not mean products were banned but it subjected tech administrators who used such services to scrutiny, including having to run more security checks and seek additional approval.”. Add U.S. export controls on advanced chips, the Justice Department’s Data Security Program launched in 2025, and rising domestic rivals like Kingsoft and the Kimi model, and the math tightens. China accounted for just 1.5% of Microsoft’s global revenue as of 2024.
Why stay? A defensible niche keeps generating cash. Microsoft has become the preferred cloud vendor for Chinese companies operating abroad. ByteDance and Shein both rely on Azure to manage data in compliance with foreign regulations, and that cross-border book is now Microsoft’s largest China-linked business. Microsoft also offers Chinese enterprise clients exclusive Azure access to Western AI models, such as OpenAI’s, that do not otherwise serve China directly. The Beijing R&D center, Microsoft’s largest outside the U.S., remains a talent funnel: Microsoft Research China alumni include senior leaders at SenseTime and DeepSeek.
People are the hardest piece to move. In 2024, Microsoft offered roughly 1,000 top China-based AI and Azure engineers relocation to the U.S., Australia, and Ireland. Only about a third accepted. Microsoft Research Asia has since opened additional labs in Vancouver, Singapore, and Tokyo.
The pattern is broader. Apple (NASDAQ:AAPL) plans to manufacture most iPhones sold to Americans in India by the end of 2026. Tesla (NASDAQ:TSLA) recently denied reports it was considering separating its China business. In the American Chamber of Commerce in China’s latest survey, 52% of respondents said China remains a top global investment priority, down from 62% in 2019.
The financial backdrop cushions all of this. Microsoft posted fiscal Q4 2026 revenue of $90.01 billion and Azure crossed $100 billion in full-year sales. The stock trades near $495.81, with a market cap of $3.66 trillion. Microsoft is retreating in nearly every measurable way in China except the one that matters most to its bottom line. That is why it has not walked away completely.
Contact [email protected] for any questions or corrections.
For a large portion of the year, Microsoft (MSFT +0.90%) and Tesla (TSLA +3.80%) were the two worst-performing "Magnificent Seven" stocks, but they've gone in two different directions since their latest earnings reports. As of market close on Aug. 11, Microsoft is up 6.5% year to date (YTD), and Tesla is down 24% YTD.
One common complaint investors have shared among them is their high capital expenditures (capex). They're not comparable in scale -- Microsoft spent $41 billion in its recent quarter (up 70% year over year), while Tesla spent $5.8 billion (up 142%) -- but they're putting a noticeable dent in both companies' finances.
Even so, Microsoft's high capex is much easier to justify, which is why it's still a buy.
It's hard to overlook free cash flow A company's free cash flow is important because it's money available for things such as dividends, share buybacks, and reinvestment in the business. Capex cuts directly into free cash flow, reducing a company's financial flexibility and ability to put the money to use elsewhere.
Even after spending $41 billion this past quarter, Microsoft's free cash flow was still $19.6 billion. Tesla's free cash flow came in negative, burning through $1.1 billion.
It's much easier to justify Microsoft's capex because it has the cash flow to absorb the costs without jeopardizing its financial health. It might not be ideal from a financial discipline standpoint, but Microsoft is a massive business and cash cow that has much more financial leeway than Tesla.
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Immediate versus future results The spending itself isn't inherently the problem; the issue is when investors can expect to see results from it. Investors are aware that the spending is a means to an end, but it helps when the end is visible or predictable.
In Microsoft's case, concerns were that heavy spending on data centers and AI infrastructure would erode cash flow and profits before a return on investment was seen. However, after its recent earnings report -- which revealed that its cloud platform, Azure, had its first $100 billion year and a $678 billion backlog -- many of those worries have been laid to rest.
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Tesla's spending is mostly going toward much longer-term projects, such as its Optimum robots and robotaxi network. Both are intriguing projects but are realistically very far off from becoming meaningful revenue generators (assuming they do). They're even further from becoming profitable businesses that Tesla can rely on.
As an investor, I'm much more encouraged by Microsoft's spending and direction. It's a stock I would load up on, while Tesla is one I'm avoiding.
Zacks Thematic Screens lets you dive into 30 dynamic investment themes shaping the future. Whether you're interested in cutting-edge technology, renewable energy, or healthcare innovations, our themes help you invest in ideas that matter to you.
Let’s take a closer look at the ‘Cloud Computing’ theme and analyze a stock within.
Cloud Computing Overview
Cloud computing refers to the on-demand seamless access of computing resources such as servers, storage, databases, networking, software, analytics, and intelligence over the Internet (the cloud) on a pay-per-use pricing model.
It marks a paradigm shift from traditional on-premises infrastructure storage to remote cloud-based storage facilities and relies heavily on virtualization and automation technologies. Instead of buying, owning, and maintaining physical data centers and servers, organizations access a virtual pool of shared resources from a cloud service provider on an as-needed basis.
This lowers operating costs, increases productivity with greater agility and flexibility, and improves scalability with higher economies of scale.
Microsoft Posts Huge Cloud Growth Microsoft (MSFT - Free Report) posted a double-beat relative to our consensus expectations, with sales growing by 18% YoY alongside 23% YoY growth in earnings. Most importantly, the mega-cap heavyweight delivered favorable Intelligent Cloud results, a key benchmark the market has consistently scrutinized amid the billions it’s been investing in AI infrastructure.
Microsoft’s Intelligent Cloud results include Azure, its cloud computing platform that provides AI computing power to businesses. Intelligent Cloud revenue came in at $39.3 billion, beating our consensus estimate handily and growing 32% YoY. The growth rate here is mightily important from a sentiment standpoint, showing an acceleration relative to recent periods.
Enterprise adoption of Copilot surged throughout its FY26 to over 30 million paid seats, further underpinning the momentum the company is enjoying thanks to its AI-related investments.
Bottom Line
Thematic investing has emerged as a powerful way for investors to sync their portfolios with emerging trends. A mix of long-term and short-term themes is increasingly dictating which companies lead as economies expand and markets shift.
While stocks in each theme aren't direct recommendations, they offer a solid starting point. Leverage the Zacks Rank and other metrics to identify the best stocks for your strategy. Each featured stock comes with a Zacks report, giving you the tools to analyze performance and potential.
The Cloud Computing thematic list, which currently Microsoft (MSFT - Free Report) is part of, focuses on technology companies that provide the related hardware and software to enable cloud computing services, the communication service providers that offer the network facilities and the various firms that utilize the services across diverse sectors like financial, consumer discretionary and industrials.
Through the end of 2025, Bill Ackman's Pershing Square compounded at a 15.9% annualized return since 2004, comfortably ahead of the S&P 500's 10.7% gomparable gain. His strategy is straightforward: Concentrate on buying stocks of high-quality businesses with dependable cash flows and with low risk of permanent capital loss.
Lately, Ackman has been leaning into megacap tech. Over the last year, Pershing Square Capital Management has almost entirely exited its stake in Alphabet (Google) and started new positions in three other "Magnificent Seven" names: Meta Platforms (META +2.79%), Amazon (AMZN -0.80%), and Microsoft (MSFT +0.90%). Ackman's firm also continues to hold a core stake in Uber Technologies (UBER +0.69%).
Together, those four stocks comprised the majority of Pershing Square's $13.7 billion portfolio in its first-quarter 13F filing. Given their growth potential, the portfolio looks capable of delivering market-beating returns in the coming years, though not without some important caveats.
Bill Ackman. Image source: Getty Images.
A closer look at Meta, Amazon, Microsoft, and Uber
These newer tech positions will do a lot of the heavy lifting. So far, business momentum is on their side.
Meta's trailing-12-month revenue grew 28% year over year. The company is benefiting from AI-driven improvements in ad targeting and content recommendations, which are helping increase engagement and monetization. Even after its run, the stock trades at a reasonable forward price-to-earnings ratio (P/E) of about 19.
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Amazon has accelerated trailing revenue growth to 16%, helped by demand for AI-related cloud services and steadier growth in e-commerce. Amazon Web Services (AWS) remains its primary profit engine with roughly 22.8 times forward earnings. Ackman appears to be betting the market is still underpricing AWS' earnings power.
Microsoft closed fiscal 2026 (ending in June) with revenue up 18%. Demand remains strong across productivity software and Azure, as enterprises continue to modernize IT and add AI capabilities. Shares have rebounded but still trade at a fair 26 times forward earnings.
Uber continues to lead in ride-hailing and delivery. Last quarter, gross bookings rose 24% year over year, while adjusted earnings climbed 35%. The next opportunity is autonomous transportation, where Uber is positioning itself as a distribution platform, but it will compete with players like Alphabet's Waymo and Tesla. Ackman seems to view Uber as undervalued at just 23 times forward earnings.
Can Pershing Square keep winning?
Taken together, these core tech holdings look reasonably priced relative to their growth. Analysts expect earnings to rise anywhere from about 16% annually (Microsoft) to 32% (Uber). If valuations hold roughly steady, the stocks could largely follow earnings over time.
The rest of Ackman's portfolio -- including Hertz, Howard Hughes, and Restaurant Brands -- is more tied to consumer health and the broader economy. Those positions are the bigger wildcards, but a growing economy over the next several years would be a meaningful tailwind.
The main risk for the tech group is that the massive growth in AI infrastructure spending fails to translate into durable profit growth. But it is difficult to see how the big tech companies won't succeed in an AI-driven economy, given their control of substantial compute capacity. With current operating momentum, reasonable valuations, and solid earnings expectations, Pershing Square could be well-positioned to extend its strong run in the years ahead.
John Ballard has positions in Amazon and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Howard Hughes, Meta Platforms, Microsoft, and Tesla. The Motley Fool recommends Restaurant Brands International and Uber Technologies. The Motley Fool has a disclosure policy.
Tiffany McGhee believes markets are currently in a good spot with earnings strength and policy changes offering reprieve from volatility. She likes the AI "picks and shovels" stocks she sees offering real returns from CapEx.
Microsoft (MSFT), the software and cloud giant sitting at the center of the AI buildout, rose approximately 1.3% Thursday morning as Pershing Square laid out wh
Microsoft delivered blowout Q4 FY26 results, with revenue up 18% to $90B and Azure growth accelerating to 43%. Azure's backlog surged to $648B, with 84% YoY growth and increasing diversification beyond OpenAI-related obligations. Microsoft 365 Copilot adoption is rapidly expanding, further embedding AI in the Office suite and driving productivity gains.
Clough Capital Partners L P grew its stake in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 15.8% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 48,974 shares of the software giant’s stock after purchasing an additional 6,682 shares during the period. Microsoft comprises about 1.7% of Clough Capital Partners L P’s holdings, making the stock its 24th biggest holding. Clough Capital Partners L P’s holdings in Microsoft were worth $18,129,000 as of its most recent filing with the Securities & Exchange Commission.
Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Norges Bank acquired a new stake in Microsoft during the 4th quarter worth about $50,664,631,000. Auto Owners Insurance Co lifted its stake in 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 valued at $29,073,486,000 after acquiring an additional 60,009,531 shares during the last quarter. Nuveen LLC bought a new stake in Microsoft in the first quarter worth $18,733,827,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of Microsoft by 500.0% during the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 59,543,261 shares of the software giant’s stock worth $30,840,432,000 after acquiring an additional 49,618,571 shares in the last quarter. Finally, Laurel Wealth Advisors LLC boosted its position in Microsoft by 49,640.3% during the second quarter. Laurel Wealth Advisors LLC now owns 29,967,038 shares of the software giant’s stock worth $14,905,904,000 after purchasing an additional 29,906,791 shares during the period. Institutional investors and hedge funds own 71.13% of the company’s stock.
Microsoft Price Performance Shares of MSFT stock opened at $492.43 on Thursday. 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 Corporation has a 52-week low of $349.20 and a 52-week high of $553.72. The firm’s 50 day moving average price is $408.32 and its two-hundred day moving average price is $407.67. The stock has a market cap of $3.66 trillion, a PE ratio of 27.42, a PEG ratio of 1.62 and a beta of 1.11.
Microsoft (NASDAQ:MSFT – Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, beating analysts’ consensus estimates of $4.24 by $0.50. The business had revenue of $90.01 billion during the quarter, compared to the consensus estimate of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The firm’s revenue was up 17.7% on a year-over-year basis. During the same quarter in the prior year, the company posted $3.65 earnings per share. As a group, analysts forecast that Microsoft Corporation will post 19.58 EPS for the current year.
Microsoft Announces Dividend The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be given a $0.91 dividend. The ex-dividend date is Thursday, August 20th. This represents a $3.64 dividend on an annualized basis and a dividend yield of 0.7%. Microsoft’s dividend payout ratio is currently 20.27%.
Insider Activity In other news, EVP Takeshi Numoto sold 4,810 shares of the stock in a transaction on Tuesday, August 4th. The shares were 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 owned 42,677 shares of the company’s stock, valued at $21,188,276.96. This represents a 10.13% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Judson Althoff sold 10,000 shares of the 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 transaction, the chief executive officer 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 disclosure for this sale is available in the SEC filing. Insiders sold 37,310 shares of company stock valued at $17,256,219 over the last 90 days. Corporate insiders own 0.03% of the company’s stock.
Microsoft News Summary Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Strong quarterly results remain the primary bullish catalyst. Microsoft reported revenue growth of 17.7% and earnings of $4.74 per share, well above consensus, reinforcing confidence in Azure, cloud demand and AI monetization. Magnificent Seven Earnings Remain Robust: MSFT, AAPL Positive Sentiment: Analyst sentiment remains supportive. Wells Fargo raised its Microsoft price target to a Street-high $700 from $650 and maintained an overweight rating, citing the company’s growth prospects and ecosystem strength. Wells Fargo Raises Microsoft Price Target Positive Sentiment: Microsoft is expanding its AI and cloud ecosystem through partnerships, including S&P Global data in Microsoft 365 Copilot, broader enterprise adoption in Brazil and Sionic’s instant-payment service on Microsoft Marketplace. These initiatives could support platform usage and recurring revenue over time. S&P Global Expands Collaboration with Microsoft Neutral Sentiment: Reports that Microsoft may introduce another Maia AI processor as early as September highlight its strategy to use custom chips to improve Azure AI efficiency. The move could reduce costs and reliance on outside suppliers, but the financial benefits will depend on successful scaling. Microsoft Stock Drops While Maia Chip Ambitions Expand Negative Sentiment: Investors are concerned that Microsoft’s rapidly rising AI infrastructure spending could pressure margins, cash flow and returns before new capacity generates sufficient revenue. The stock’s sharp rally since the earnings report also increases profit-taking and valuation sensitivity. Microsoft’s AI Data Center Push: Growth Engine or Capex Trap? Negative Sentiment: A newly disclosed Windows zero-day vulnerability that may enable system-wide access adds reputational, remediation and potential liability concerns. Separate reports of pending investor lawsuits contribute to a cautious tone, although neither issue has yet altered Microsoft’s fundamental earnings outlook. New Windows Zero-Day Bug Published Analyst Upgrades and Downgrades A number of equities research analysts have issued reports on the stock. Stifel Nicolaus upped their price target on shares of Microsoft from $400.00 to $450.00 and gave the company a “hold” rating in a report on Thursday, July 30th. Cantor Fitzgerald lifted their price target on shares of Microsoft from $502.00 to $522.00 and gave the stock an “overweight” rating in a research note on Monday, July 27th. Scotiabank reaffirmed an “outperform” rating and set a $510.00 price objective on shares of Microsoft in a report on Thursday, July 30th. China Renaissance lowered their target price on shares of Microsoft from $630.00 to $550.00 and set a “buy” rating on the stock in a report on Monday, May 4th. Finally, Robert W. Baird decreased their price target on Microsoft from $540.00 to $500.00 and set an “outperform” rating on the stock in a research report on Wednesday, April 15th. Forty-two analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $560.27.
Check Out Our Latest Research Report on Microsoft
Microsoft Company Profile (Free Report)
Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.
Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).
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Cardiff Park Advisors LLC decreased its stake in Microsoft Corporation (NASDAQ: MSFT) by 5.9% during the undefined quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 23,892 shares of the software giant's stock after selling 1,507 shares during the quarter. Cardiff Park Advisors LLC's
Over the last year, Space Exploration Technologies (SPCX -3.31%) -- more commonly known as SpaceX -- has quietly made itself into a critical supplier of artificial intelligence (AI) infrastructure. The company has channeled enormous sums into capital expenditures, building out data center capacity rapidly.
During the second quarter alone, SpaceX allocated $15.8 billion of capex toward AI compute. The company's aggressive investments have already delivered 1.4 gigawatts (GW) of nameplate capacity online, and it has ambitions to reach 10 GW by the end of next year.
The scale of this expansion raises the question of which companies might help underwrite SpaceX's data center expansion plans. According to a new report from research firm SemiAnalysis, Microsoft (MSFT +0.55%) emerges as a potential partner. Here's why it's a logical candidate to be SpaceX's next AI data center customer.
Image source: The Motley Fool.
SpaceX has already teamed up with AI's largest developers SpaceX has secured a few landmark agreements that underscore the viability of its AI infrastructure ambitions. A couple of months ago, Anthropic committed to pay $1.25 billion per month for access to over 300 megawatts (MW) of capacity at SpaceX's Colossus facility. The multiyear agreement is valued at more than $40 billion through 2029.
Google Cloud swiftly followed with a deal valued at $920 million per month. That partnership is scheduled to begin later this year, with Google Cloud accessing 110,000 Nvidia graphics processing units (GPUs) and supporting hardware. The contract represents more than $30 billion in spend over its full term.
Lastly, an Nvidia-backed start-up called Reflection AI has contracted with SpaceX to pay $150 million per month for compute in a deal that has a total value of $6.3 billion through 2029.
These deals are central to the SpaceX investment thesis because they prove that the company can convert its underutilized data center capacity into high-margin recurring revenue -- validating secular demand from both frontier model developers and cloud hyperscalers. By locking in large-scale offtake, SpaceX puts itself in a better position to fund further compute build-outs while commanding attractive data center economics.
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What are SpaceX's AI infrastructure ambitions? During SpaceX's second-quarter earnings call, CEO Elon Musk outlined a detailed infrastructure roadmap that goes beyond incremental growth. He explained that SpaceX expects to finish 2026 with more than 2 GW of compute online and that cumulative capacity by the end of next year may be "closer to 10 GW of compute than 5 GW." Musk stressed that the company is really aiming for much higher capacity at the power and cooling level, targeting a series of projects that collectively reach 20 GW.
SpaceX intends to achieve this infrastructure expansion by focusing exclusively on Nvidia's Vera Rubin architecture. The company's goal is not merely internal training for its AI model, Grok, but shifting toward renting additional capacity for external training and inference applications.
Why Microsoft makes a logical partner for SpaceX Analysts at SemiAnalysis suggest that Microsoft could be SpaceX's next major hyperscaler customer. Of note, Microsoft has already contracted for 10 GW of capacity elsewhere for a cumulative total of $300 billion. The subtle detail here is that the compute capacity to fulfill those agreements won't be fully online until late 2027 or possibly early 2028. With that in mind, there's an obvious question: How will Microsoft bridge the gap and meet its needs in the meantime?
SpaceX could be an ideal fit for two reasons. First, the company includes a 90-day cancellation policy in its capacity agreements. That provides its customers with financial flexibility at little risk to its balance sheet. Moreover, SpaceX has already proven that it can bring massive compute clusters online within a matter of months. This would allow Microsoft to secure large capacity blocks almost immediately.
Admittedly, for SpaceX to multiply capacity from 1.4 GW to 10 GW within a year and a half is quite an ambitious goal. That said, it's hard to ignore the company's demonstrated successes in execution. On-site natural gas power generation, modular power systems, and access to secondary turbine markets have already enabled SpaceX's data center facilities to come online in mere months rather than several years.
Ultimately, I agree that Microsoft is a logical candidate for a SpaceX partner, given that its operational needs may exceed those of frontier AI labs, while its scale and the urgency of its compute needs align with SpaceX's delivery speed.
The combination of proven hyperscaler demand, engineering advantages, and complementary business needs makes SpaceX's visionary infrastructure expansion both strategically coherent and commercially plausible. Against this backdrop, investors may want to consider buying the dip in SpaceX stock as its AI business looks poised for a potential breakout that few seem to be anticipating.
by Todd Bishop on Aug 13, 2026 at 8:28 amAugust 13, 2026 at 8:30 am
Microsoft introduced Mico last October as “your AI companion.” It’s now exiting Copilot’s core voice experience. (Microsoft Image) Microsoft has spent decades putting characters into its software and then sending them off into retirement. Now joining Bob, Clippy and Cortana in the great recycle bin in the sky: Mico.
The animated artificial intelligence blob (a derivation of “Microsoft Copilot”) arrived last October in Microsoft’s Copilot Fall Release, described as “expressive, customizable, and warm” — an optional presence that “listens, reacts, and even changes colors to reflect your interactions.”
Less than a year later, Microsoft is pulling Mico from Copilot’s core voice experience as part of the merger of the Copilot consumer and business apps, announced Thursday morning.
But maybe it’s more accurate to call this a semi-retirement, for now: Mico is expected to live on in some of Copilot’s education features, according to the company.
Mico reflected a bet Microsoft made about consumer AI under Mustafa Suleyman, the DeepMind and Inflection co-founder who joined as CEO of Microsoft AI in 2024: that the way to win users away from ChatGPT was warmth and personality, not just raw capability.
It didn’t turn out that way. In March, Microsoft handed oversight of Copilot to Jacob Andreou, a former Snap executive, and narrowed Suleyman’s role to building AI models. Andreou told his organization in July that Copilot should focus on “real work” and be “optimized for outcomes.”
Microsoft has been here before, repeatedly.
Microsoft Bob, released in March 1995, replaced the Windows program manager with a cartoon house — click the wall calendar to put something on your schedule, click the pen to write a letter, etc. — guided by a yellow dog named Rover. Clippy, officially Clippit, debuted with Office 97, offering unsolicited help with whatever it thought you were doing, e.g., “It looks like you’re writing a letter. Would you like help?” For many, the answer was no. Microsoft switched the Office Assistant off by default in Office XP and removed it entirely in Office 2007. Cortana, named for the Halo video-game AI and voiced by the same actress, arrived on Windows Phone in 2014 and Windows 10 the following year. Microsoft retired the standalone Cortana app in 2023 to make way for Copilot. That’s not to mention Tay, the chatbot Microsoft pulled within a day in 2016 after users taught it to post racist messages, or the less-official Sydney, the AI alter ego that surfaced during early Bing Chat testing in 2023 and famously told New York Times technology columnist Kevin Roose it loved him and that he should leave his wife.
So farewell, Mico. It could have been a lot worse.
Previous StoryMicrosoft starts merging its Copilot consumer and business apps in advance of ‘Super App’ rollout Next StoryHow this longtime Google exec fits an insane amount of exercise into his weekly routine
Two years ago, Microsoft described AI as a “generational shift” in technology that it wanted to lead. Today, the company is merging its Copilot-branded consumer and business apps, and ditching a number of unsuccessful AI features.
As initially reported by GeekWire and detailed in Microsoft’s support documentation, the tech giant will combine the functionality of its consumer-facing Copilot app and the more business-oriented Microsoft 365 Copilot app.
The move is both an acknowledgement that personal and professional uses of AI often overlap, and that Microsoft’s prior strategy was too complicated to make Copilot a viable competitor to the likes of ChatGPT, Claude, and Gemini.
It also follows a broader consolidation in the AI app space that has seen Claude merging Cowork into Chat; OpenAI merging its agentic feature Operator into ChatGPT; and Google adding specialized capabilities to its Gemini app, like the combination of deep research and web browsing.
According to Microsoft, consumers will lose access to Group Chats, AI-generated podcasts in Copilot, Copilot Labs experimental features, and Deep Research, by August 18, 2026. For paying professional users, Researcher will offer a replacement for the latter, at least.
The company will also ditch its goofy animated character for Copilot, named Mico, a floating blob that felt like an AI-ified version of Clippy. Other features may temporarily disappear during the transition, Microsoft warns, and files generated by the standalone Copilot app will be migrated to OneDrive.
While the company says the goal is to make Copilot a “simpler, more cohesive experience,” it’s also an admission that Copilot has lost its way. In July, The Information reported that Microsoft EVP Jacob Andreou, who oversees Copilot, said in an internal memo that the app needed to earn “the right to exist” in its customers’ lives, which required moving on from features that didn’t work.
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Estuary Capital Management LP lessened its position in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 27.8% in the 1st quarter, according to its most recent filing with the SEC. The firm owned 54,248 shares of the software giant’s stock after selling 20,922 shares during the period. Microsoft makes up 3.4% of Estuary Capital Management LP’s investment portfolio, making the stock its 17th largest holding. Estuary Capital Management LP’s holdings in Microsoft were worth $20,081,000 at the end of the most recent quarter.
Other institutional investors and hedge funds have also made changes to their positions in the company. Longfellow Investment Management Co. LLC lifted its holdings in shares of Microsoft by 51.3% in the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock valued at $29,000 after buying an additional 20 shares during the period. Bernzott Capital Advisors purchased a new position in Microsoft in the fourth quarter worth $34,000. Timmons Wealth Management LLC acquired a new stake in Microsoft in the fourth quarter valued at $36,000. Fairway Wealth LLC boosted its position in shares of Microsoft by 287.0% during the 4th quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock worth $43,000 after purchasing an additional 66 shares in the last quarter. Finally, LSV Asset Management acquired a new position in shares of Microsoft during the 4th quarter worth $44,000. 71.13% of the stock is currently owned by institutional investors and hedge funds.
Microsoft Price Performance MSFT stock opened at $492.43 on Thursday. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07. Microsoft Corporation has a 12-month low of $349.20 and a 12-month high of $553.72. The company has a market cap of $3.66 trillion, a PE ratio of 27.42, a price-to-earnings-growth ratio of 1.62 and a beta of 1.11. The stock has a 50-day moving average price of $408.32 and a two-hundred day moving average price of $407.67.
Microsoft (NASDAQ:MSFT – Get Free Report) last announced 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 firm had revenue of $90.01 billion for the quarter, compared to analysts’ expectations of $87.62 billion. During the same period in the previous year, the company posted $3.65 earnings per share. Microsoft’s revenue was up 17.7% compared to the same quarter last year. As a group, research analysts predict that Microsoft Corporation will post 19.58 EPS for the current year.
Microsoft Announces Dividend The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be issued a dividend of $0.91 per share. The ex-dividend date is Thursday, August 20th. This represents a $3.64 annualized dividend and a dividend yield of 0.7%. Microsoft’s payout ratio is presently 20.27%.
Insiders Place Their Bets In other Microsoft news, CEO Judson Althoff sold 10,000 shares of the business’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 transaction, the chief executive officer owned 100,447 shares in the company, valued at $49,007,086.83. The trade was a 9.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 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 completion of the sale, the executive vice president directly owned 42,677 shares of the company’s stock, valued at $21,188,276.96. The trade was a 10.13% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 37,310 shares of company stock valued at $17,256,219. 0.03% of the stock is owned by corporate insiders.
Microsoft News Roundup Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Strong quarterly results remain the primary bullish catalyst. Microsoft reported revenue growth of 17.7% and earnings of $4.74 per share, well above consensus, reinforcing confidence in Azure, cloud demand and AI monetization. Magnificent Seven Earnings Remain Robust: MSFT, AAPL Positive Sentiment: Analyst sentiment remains supportive. Wells Fargo raised its Microsoft price target to a Street-high $700 from $650 and maintained an overweight rating, citing the company’s growth prospects and ecosystem strength. Wells Fargo Raises Microsoft Price Target Positive Sentiment: Microsoft is expanding its AI and cloud ecosystem through partnerships, including S&P Global data in Microsoft 365 Copilot, broader enterprise adoption in Brazil and Sionic’s instant-payment service on Microsoft Marketplace. These initiatives could support platform usage and recurring revenue over time. S&P Global Expands Collaboration with Microsoft Neutral Sentiment: Reports that Microsoft may introduce another Maia AI processor as early as September highlight its strategy to use custom chips to improve Azure AI efficiency. The move could reduce costs and reliance on outside suppliers, but the financial benefits will depend on successful scaling. Microsoft Stock Drops While Maia Chip Ambitions Expand Negative Sentiment: Investors are concerned that Microsoft’s rapidly rising AI infrastructure spending could pressure margins, cash flow and returns before new capacity generates sufficient revenue. The stock’s sharp rally since the earnings report also increases profit-taking and valuation sensitivity. Microsoft’s AI Data Center Push: Growth Engine or Capex Trap? Negative Sentiment: A newly disclosed Windows zero-day vulnerability that may enable system-wide access adds reputational, remediation and potential liability concerns. Separate reports of pending investor lawsuits contribute to a cautious tone, although neither issue has yet altered Microsoft’s fundamental earnings outlook. New Windows Zero-Day Bug Published Analysts Set New Price Targets MSFT has been the subject of several recent analyst reports. CLSA reiterated an “outperform” rating on shares of Microsoft in a research note on Thursday, July 30th. Guggenheim reaffirmed a “buy” rating and issued a $586.00 target price on shares of Microsoft in a report on Monday, July 27th. China Renaissance decreased their price target on Microsoft from $630.00 to $550.00 and set a “buy” rating on the stock in a research note on Monday, May 4th. Benchmark reaffirmed a “buy” rating on shares of Microsoft in a research note on Friday, July 24th. Finally, DZ Bank reaffirmed a “buy” rating on shares of Microsoft in a report on Thursday, April 30th. Forty-two equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $560.27.
View Our Latest Stock Report on Microsoft
Microsoft Company Profile (Free Report)
Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.
Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).
Featured Articles Five stocks we like better than Microsoft GE Vernova’s AI Power Boom Faces a Profit Test Cardinal Health Earnings: Can Perfection Get Priced In Twice? Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand Legacy Jet Builders Stall While Embraer Accelerates to New Highs 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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« PREVIOUS HEADLINEON (NYSE:ONON) Price Target Lowered to $43.00 at Telsey Advisory Group
NEXT HEADLINE »Microsoft Corporation $MSFT Stake Raised by Evelyn Partners Asset Management Ltd
Evelyn Partners Asset Management Ltd raised its holdings in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 6.8% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 40,254 shares of the software giant’s stock after purchasing an additional 2,549 shares during the quarter. Microsoft accounts for about 3.7% of Evelyn Partners Asset Management Ltd’s portfolio, making the stock its 4th largest position. Evelyn Partners Asset Management Ltd’s holdings in Microsoft were worth $14,901,000 as of its most recent SEC filing.
Other hedge funds also recently added to or reduced their stakes in the company. Longfellow Investment Management Co. LLC increased its stake in Microsoft by 51.3% in the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock worth $29,000 after buying an additional 20 shares during the period. Bernzott Capital Advisors acquired a new stake in Microsoft in the fourth quarter worth about $34,000. Timmons Wealth Management LLC purchased a new stake in shares of Microsoft during the fourth quarter valued at $36,000. Fairway Wealth LLC boosted its position in Microsoft by 287.0% in the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock valued at $43,000 after buying an additional 66 shares during the last quarter. Finally, LSV Asset Management purchased a new stake in Microsoft in the fourth quarter valued at $44,000. 71.13% of the stock is currently owned by institutional investors.
Insider Activity In other Microsoft news, EVP Takeshi Numoto sold 4,810 shares of the firm’s stock in a transaction on 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 completion of 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. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Judson Althoff sold 15,500 shares of the firm’s stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $460.99, for a total transaction of $7,145,345.00. Following the completion of the sale, the chief executive officer owned 110,477 shares of the company’s stock, valued at $50,928,792.23. This trade represents a 12.30% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 37,310 shares of company stock valued at $17,256,219 over the last three months. 0.03% of the stock is currently owned by corporate insiders.
Microsoft Stock Performance Shares of MSFT opened at $492.43 on Thursday. 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 cap of $3.66 trillion, a PE ratio of 27.42, a price-to-earnings-growth ratio of 1.62 and a beta of 1.11. Microsoft Corporation has a 12-month low of $349.20 and a 12-month high of $553.72. The company’s 50 day simple moving average is $408.32 and its 200-day simple moving average is $407.67.
Microsoft (NASDAQ:MSFT – Get Free Report) last announced its earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, beating analysts’ consensus estimates of $4.24 by $0.50. The business 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%. The business’s revenue was up 17.7% compared to the same quarter last year. During the same period in the prior year, the company earned $3.65 earnings per share. As a group, equities analysts predict that Microsoft Corporation will post 19.58 EPS for the current year.
Microsoft Announces Dividend The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be given a dividend of $0.91 per share. The ex-dividend date is Thursday, August 20th. This represents a $3.64 dividend on an annualized basis and a yield of 0.7%. Microsoft’s dividend payout ratio is presently 20.27%.
Key Microsoft News Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Strong quarterly results remain the primary bullish catalyst. Microsoft reported revenue growth of 17.7% and earnings of $4.74 per share, well above consensus, reinforcing confidence in Azure, cloud demand and AI monetization. Magnificent Seven Earnings Remain Robust: MSFT, AAPL Positive Sentiment: Analyst sentiment remains supportive. Wells Fargo raised its Microsoft price target to a Street-high $700 from $650 and maintained an overweight rating, citing the company’s growth prospects and ecosystem strength. Wells Fargo Raises Microsoft Price Target Positive Sentiment: Microsoft is expanding its AI and cloud ecosystem through partnerships, including S&P Global data in Microsoft 365 Copilot, broader enterprise adoption in Brazil and Sionic’s instant-payment service on Microsoft Marketplace. These initiatives could support platform usage and recurring revenue over time. S&P Global Expands Collaboration with Microsoft Neutral Sentiment: Reports that Microsoft may introduce another Maia AI processor as early as September highlight its strategy to use custom chips to improve Azure AI efficiency. The move could reduce costs and reliance on outside suppliers, but the financial benefits will depend on successful scaling. Microsoft Stock Drops While Maia Chip Ambitions Expand Negative Sentiment: Investors are concerned that Microsoft’s rapidly rising AI infrastructure spending could pressure margins, cash flow and returns before new capacity generates sufficient revenue. The stock’s sharp rally since the earnings report also increases profit-taking and valuation sensitivity. Microsoft’s AI Data Center Push: Growth Engine or Capex Trap? Negative Sentiment: A newly disclosed Windows zero-day vulnerability that may enable system-wide access adds reputational, remediation and potential liability concerns. Separate reports of pending investor lawsuits contribute to a cautious tone, although neither issue has yet altered Microsoft’s fundamental earnings outlook. New Windows Zero-Day Bug Published Analyst Upgrades and Downgrades A number of equities research analysts have recently commented on MSFT shares. Mizuho cut their price target on Microsoft from $515.00 to $490.00 and set an “outperform” rating for the company in a research note on Wednesday, July 15th. CLSA restated an “outperform” rating on shares of Microsoft in a research report on Thursday, July 30th. The Goldman Sachs Group reiterated a “buy” rating and issued a $640.00 price objective on shares of Microsoft in a report on Thursday, July 30th. Rothschild & Co Redburn cut their target price on shares of Microsoft from $450.00 to $400.00 and set a “neutral” rating on the stock in a research note on Thursday, April 23rd. Finally, HSBC reduced their price target on Microsoft from $593.00 to $571.00 in a research report on Thursday, April 30th. Forty-two equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat.com, Microsoft has a consensus rating of “Moderate Buy” and a consensus target price of $560.27.
Check Out Our Latest Stock Analysis on MSFT
About Microsoft (Free Report)
Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.
Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).
Read More Five stocks we like better than Microsoft GE Vernova’s AI Power Boom Faces a Profit Test Cardinal Health Earnings: Can Perfection Get Priced In Twice? Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand Legacy Jet Builders Stall While Embraer Accelerates to New Highs 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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« PREVIOUS HEADLINEMicrosoft Corporation $MSFT Shares Sold by Estuary Capital Management LP
NEXT HEADLINE »Microsoft Corporation $MSFT Shares Acquired by Evelyn Partners Investment Management Services Ltd
Evelyn Partners Investment Management Services Ltd increased its position in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 10.4% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 117,766 shares of the software giant’s stock after buying an additional 11,123 shares during the period. Microsoft comprises approximately 5.1% of Evelyn Partners Investment Management Services Ltd’s holdings, making the stock its 3rd biggest holding. Evelyn Partners Investment Management Services Ltd’s holdings in Microsoft were worth $43,593,000 at the end of the most recent quarter.
A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the company. WFA Asset Management Corp lifted its stake in shares of Microsoft by 27.0% in the first quarter. WFA Asset Management Corp now owns 1,016 shares of the software giant’s stock worth $427,000 after acquiring an additional 216 shares in the last quarter. Ironwood Wealth Management LLC. grew its stake in Microsoft by 0.3% during the 2nd quarter. Ironwood Wealth Management LLC. now owns 12,658 shares of the software giant’s stock valued at $5,658,000 after purchasing an additional 38 shares in the last quarter. Discipline Wealth Solutions LLC increased its holdings in Microsoft by 410.4% during the 3rd quarter. Discipline Wealth Solutions LLC now owns 2,659 shares of the software giant’s stock worth $1,144,000 after purchasing an additional 2,138 shares during the last quarter. Wealth Group Ltd. raised its position in shares of Microsoft by 1.2% in the 4th quarter. Wealth Group Ltd. now owns 2,374 shares of the software giant’s stock valued at $1,000,000 after purchasing an additional 28 shares in the last quarter. Finally, Eagle Capital Management LLC raised its position in shares of Microsoft by 0.4% in the 4th quarter. Eagle Capital Management LLC now owns 23,097 shares of the software giant’s stock valued at $9,735,000 after purchasing an additional 96 shares in the last quarter. 71.13% of the stock is owned by hedge funds and other institutional investors.
Key Stories Impacting Microsoft Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Strong quarterly results remain the primary bullish catalyst. Microsoft reported revenue growth of 17.7% and earnings of $4.74 per share, well above consensus, reinforcing confidence in Azure, cloud demand and AI monetization. Magnificent Seven Earnings Remain Robust: MSFT, AAPL Positive Sentiment: Analyst sentiment remains supportive. Wells Fargo raised its Microsoft price target to a Street-high $700 from $650 and maintained an overweight rating, citing the company’s growth prospects and ecosystem strength. Wells Fargo Raises Microsoft Price Target Positive Sentiment: Microsoft is expanding its AI and cloud ecosystem through partnerships, including S&P Global data in Microsoft 365 Copilot, broader enterprise adoption in Brazil and Sionic’s instant-payment service on Microsoft Marketplace. These initiatives could support platform usage and recurring revenue over time. S&P Global Expands Collaboration with Microsoft Neutral Sentiment: Reports that Microsoft may introduce another Maia AI processor as early as September highlight its strategy to use custom chips to improve Azure AI efficiency. The move could reduce costs and reliance on outside suppliers, but the financial benefits will depend on successful scaling. Microsoft Stock Drops While Maia Chip Ambitions Expand Negative Sentiment: Investors are concerned that Microsoft’s rapidly rising AI infrastructure spending could pressure margins, cash flow and returns before new capacity generates sufficient revenue. The stock’s sharp rally since the earnings report also increases profit-taking and valuation sensitivity. Microsoft’s AI Data Center Push: Growth Engine or Capex Trap? Negative Sentiment: A newly disclosed Windows zero-day vulnerability that may enable system-wide access adds reputational, remediation and potential liability concerns. Separate reports of pending investor lawsuits contribute to a cautious tone, although neither issue has yet altered Microsoft’s fundamental earnings outlook. New Windows Zero-Day Bug Published Wall Street Analysts Forecast Growth A number of analysts have recently weighed in on MSFT shares. Phillip Securities downgraded shares of Microsoft from a “strong-buy” rating to a “moderate buy” rating in a research report on Monday, August 3rd. Evercore set a $528.00 price target on shares of Microsoft in a report on Thursday, July 30th. Truist Financial reiterated a “buy” rating and set a $575.00 price objective on shares of Microsoft in a research note on Wednesday, July 22nd. Barclays decreased their price objective on shares of Microsoft from $545.00 to $512.00 and set an “overweight” rating for the company in a report on Thursday, July 30th. Finally, CLSA reissued an “outperform” rating on shares of Microsoft in a research report on Thursday, July 30th. Forty-two analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $560.27.
Check Out Our Latest Stock Report on MSFT
Microsoft Stock Down 2.3% NASDAQ:MSFT opened at $492.43 on Thursday. 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 50 day moving average of $408.32 and a 200-day moving average of $407.67. The firm has a market capitalization of $3.66 trillion, a PE ratio of 27.42, a price-to-earnings-growth ratio of 1.62 and a beta of 1.11. Microsoft Corporation has a 52 week low of $349.20 and a 52 week high of $553.72.
Microsoft (NASDAQ:MSFT – Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, topping 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 business had revenue of $90.01 billion for the quarter, compared to the consensus estimate of $87.62 billion. During the same quarter last year, the business posted $3.65 EPS. The business’s revenue was up 17.7% on a year-over-year basis. Analysts predict that Microsoft Corporation will post 19.58 EPS for the current year.
Microsoft Dividend Announcement The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be paid a $0.91 dividend. This represents a $3.64 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date is Thursday, August 20th. Microsoft’s dividend payout ratio (DPR) is presently 20.27%.
Insider Buying and Selling at Microsoft In other news, CEO Judson Althoff sold 15,500 shares of the company’s stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $460.99, for a total transaction of $7,145,345.00. Following the completion of the transaction, the chief executive officer owned 110,477 shares in the company, valued at approximately $50,928,792.23. This represents a 12.30% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Takeshi Numoto sold 4,810 shares of the 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 completion of the sale, the executive vice president directly owned 42,677 shares in the company, valued at approximately $21,188,276.96. This trade represents a 10.13% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 37,310 shares of company stock valued at $17,256,219. Corporate insiders own 0.03% of the company’s stock.
Microsoft Profile (Free Report)
Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.
Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).
Featured Stories Five stocks we like better than Microsoft GE Vernova’s AI Power Boom Faces a Profit Test Cardinal Health Earnings: Can Perfection Get Priced In Twice? Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand Legacy Jet Builders Stall While Embraer Accelerates to New Highs 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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Evelyn Partners Investment Management LLP grew its position in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 4.6% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 703,648 shares of the software giant’s stock after purchasing an additional 31,118 shares during the quarter. Microsoft comprises approximately 7.1% of Evelyn Partners Investment Management LLP’s investment portfolio, making the stock its 2nd biggest position. Evelyn Partners Investment Management LLP’s holdings in Microsoft were worth $260,469,000 at the end of the most recent reporting period.
A number of other large investors also recently made changes to their positions in MSFT. Markel Group Inc. increased its position in shares of 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 acquiring an additional 1,950 shares in the last quarter. Bessemer Group Inc. increased its position in shares of Microsoft by 8.4% during the first quarter. Bessemer Group Inc. now owns 6,921,677 shares of the software giant’s stock worth $2,562,197,000 after acquiring an additional 537,634 shares during the last quarter. Taylor Securities Services Inc. acquired a new position in shares of Microsoft in the 4th quarter valued at approximately $2,616,000. Werba Rubin Papier Wealth Management boosted its stake in Microsoft by 15.7% during the 4th quarter. Werba Rubin Papier Wealth Management now owns 12,492 shares of the software giant’s stock valued at $6,041,000 after acquiring an additional 1,698 shares during the last quarter. Finally, Harel Insurance Investments & Financial Services Ltd. lifted its position in shares of Microsoft by 138.8% during the first quarter. Harel Insurance Investments & Financial Services Ltd. now owns 1,356,359 shares of the software giant’s stock worth $502,077,000 after purchasing an additional 788,297 shares during the last quarter. Institutional investors own 71.13% of the company’s stock.
Insider Activity at Microsoft In other news, CEO Judson Althoff sold 10,000 shares of the firm’s stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total value of $4,878,900.00. Following the sale, the chief executive officer owned 100,447 shares in the company, valued at approximately $49,007,086.83. This trade represents a 9.05% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, EVP Takeshi Numoto sold 4,810 shares of the stock in a transaction on Tuesday, August 4th. The shares were 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 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 sold 37,310 shares of company stock valued at $17,256,219 over the last three months. 0.03% of the stock is owned by company insiders.
Microsoft Price Performance NASDAQ MSFT opened at $492.43 on Thursday. The stock’s 50-day moving average is $408.32 and its two-hundred day moving average is $407.67. 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 firm has a market cap of $3.66 trillion, a P/E ratio of 27.42, a price-to-earnings-growth ratio of 1.62 and a beta of 1.11.
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. The firm had revenue of $90.01 billion during the quarter, compared to analysts’ expectations of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The company’s revenue was up 17.7% on a year-over-year basis. During the same quarter in the prior year, the business earned $3.65 earnings per share. On average, analysts anticipate that Microsoft Corporation will post 19.58 earnings per share for the current fiscal year.
Microsoft Dividend Announcement The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be given a dividend of $0.91 per share. This represents a $3.64 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend is Thursday, August 20th. Microsoft’s payout ratio is currently 20.27%.
Trending Headlines about Microsoft Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Strong quarterly results remain the primary bullish catalyst. Microsoft reported revenue growth of 17.7% and earnings of $4.74 per share, well above consensus, reinforcing confidence in Azure, cloud demand and AI monetization. Magnificent Seven Earnings Remain Robust: MSFT, AAPL Positive Sentiment: Analyst sentiment remains supportive. Wells Fargo raised its Microsoft price target to a Street-high $700 from $650 and maintained an overweight rating, citing the company’s growth prospects and ecosystem strength. Wells Fargo Raises Microsoft Price Target Positive Sentiment: Microsoft is expanding its AI and cloud ecosystem through partnerships, including S&P Global data in Microsoft 365 Copilot, broader enterprise adoption in Brazil and Sionic’s instant-payment service on Microsoft Marketplace. These initiatives could support platform usage and recurring revenue over time. S&P Global Expands Collaboration with Microsoft Neutral Sentiment: Reports that Microsoft may introduce another Maia AI processor as early as September highlight its strategy to use custom chips to improve Azure AI efficiency. The move could reduce costs and reliance on outside suppliers, but the financial benefits will depend on successful scaling. Microsoft Stock Drops While Maia Chip Ambitions Expand Negative Sentiment: Investors are concerned that Microsoft’s rapidly rising AI infrastructure spending could pressure margins, cash flow and returns before new capacity generates sufficient revenue. The stock’s sharp rally since the earnings report also increases profit-taking and valuation sensitivity. Microsoft’s AI Data Center Push: Growth Engine or Capex Trap? Negative Sentiment: A newly disclosed Windows zero-day vulnerability that may enable system-wide access adds reputational, remediation and potential liability concerns. Separate reports of pending investor lawsuits contribute to a cautious tone, although neither issue has yet altered Microsoft’s fundamental earnings outlook. New Windows Zero-Day Bug Published Analyst Ratings Changes A number of analysts have weighed in on the stock. Raymond James Financial cut shares of Microsoft from a “market perform” rating to a “market perform” rating in a report on Tuesday, May 5th. Cantor Fitzgerald boosted their price target on Microsoft from $502.00 to $522.00 and gave the stock an “overweight” rating in a research report on Monday, July 27th. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating on shares of Microsoft in a report on Monday, July 20th. BMO Capital Markets raised their target price on Microsoft from $500.00 to $515.00 and gave the company an “outperform” rating in a research note on Thursday, July 30th. Finally, Oppenheimer restated an “outperform” rating and issued a $515.00 price target on shares of Microsoft in a research report on Wednesday, July 22nd. Forty-two equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $560.27.
Check Out Our Latest Stock Report on Microsoft
Microsoft Profile (Free Report)
Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.
Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).
Further Reading Five stocks we like better than Microsoft GE Vernova’s AI Power Boom Faces a Profit Test Cardinal Health Earnings: Can Perfection Get Priced In Twice? Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand Legacy Jet Builders Stall While Embraer Accelerates to New Highs 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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Castleark Management LLC trimmed its stake in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 28.5% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 264,102 shares of the software giant’s stock after selling 105,358 shares during the period. Microsoft accounts for 3.2% of Castleark Management LLC’s portfolio, making the stock its 3rd largest position. Castleark Management LLC’s holdings in Microsoft were worth $97,763,000 as of its most recent filing with the Securities and Exchange Commission.
A number of other institutional investors also recently added to or reduced their stakes in MSFT. Longfellow Investment Management Co. LLC raised its stake in shares of Microsoft by 51.3% during the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock worth $29,000 after acquiring an additional 20 shares in the last quarter. Shepherd Kaplan Krochuk LLC boosted its stake in Microsoft by 4.9% in the third quarter. Shepherd Kaplan Krochuk LLC now owns 431 shares of the software giant’s stock valued at $223,000 after acquiring an additional 20 shares in the last quarter. Fischer Investment Strategies LLC boosted its stake in Microsoft by 3.1% in the fourth quarter. Fischer Investment Strategies LLC now owns 697 shares of the software giant’s stock valued at $337,000 after acquiring an additional 21 shares in the last quarter. Pollock Investment Advisors LLC grew its holdings in Microsoft by 0.8% in the third quarter. Pollock Investment Advisors LLC now owns 2,805 shares of the software giant’s stock worth $1,453,000 after purchasing an additional 21 shares during the last quarter. Finally, Better Money Decisions LLC grew its holdings in Microsoft by 0.6% in the second quarter. Better Money Decisions LLC now owns 3,498 shares of the software giant’s stock worth $1,740,000 after purchasing an additional 21 shares during the last quarter. Institutional investors own 71.13% of the company’s stock.
Key Stories Impacting Microsoft Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Strong quarterly results remain the primary bullish catalyst. Microsoft reported revenue growth of 17.7% and earnings of $4.74 per share, well above consensus, reinforcing confidence in Azure, cloud demand and AI monetization. Magnificent Seven Earnings Remain Robust: MSFT, AAPL Positive Sentiment: Analyst sentiment remains supportive. Wells Fargo raised its Microsoft price target to a Street-high $700 from $650 and maintained an overweight rating, citing the company’s growth prospects and ecosystem strength. Wells Fargo Raises Microsoft Price Target Positive Sentiment: Microsoft is expanding its AI and cloud ecosystem through partnerships, including S&P Global data in Microsoft 365 Copilot, broader enterprise adoption in Brazil and Sionic’s instant-payment service on Microsoft Marketplace. These initiatives could support platform usage and recurring revenue over time. S&P Global Expands Collaboration with Microsoft Neutral Sentiment: Reports that Microsoft may introduce another Maia AI processor as early as September highlight its strategy to use custom chips to improve Azure AI efficiency. The move could reduce costs and reliance on outside suppliers, but the financial benefits will depend on successful scaling. Microsoft Stock Drops While Maia Chip Ambitions Expand Negative Sentiment: Investors are concerned that Microsoft’s rapidly rising AI infrastructure spending could pressure margins, cash flow and returns before new capacity generates sufficient revenue. The stock’s sharp rally since the earnings report also increases profit-taking and valuation sensitivity. Microsoft’s AI Data Center Push: Growth Engine or Capex Trap? Negative Sentiment: A newly disclosed Windows zero-day vulnerability that may enable system-wide access adds reputational, remediation and potential liability concerns. Separate reports of pending investor lawsuits contribute to a cautious tone, although neither issue has yet altered Microsoft’s fundamental earnings outlook. New Windows Zero-Day Bug Published Analysts Set New Price Targets MSFT has been the subject of several analyst reports. Dbs Bank decreased their price objective on Microsoft from $678.00 to $573.00 in a report on Thursday, May 7th. Wolfe Research reaffirmed an “outperform” rating and set a $550.00 target price on shares of Microsoft in a research report on Thursday, July 30th. DZ Bank reiterated a “buy” rating on shares of Microsoft in a research note on Thursday, April 30th. The Goldman Sachs Group reissued a “buy” rating and issued a $640.00 price target on shares of Microsoft in a report on Thursday, July 30th. Finally, Phillip Securities lowered Microsoft from a “strong-buy” rating to a “moderate buy” rating in a research note on Monday, August 3rd. Forty-two analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $560.27.
Read Our Latest Report on Microsoft
Insider Activity at Microsoft In other news, EVP Takeshi Numoto sold 4,810 shares of the company’s stock in a transaction 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 sale, the executive vice president directly owned 42,677 shares of the company’s stock, valued at $21,188,276.96. This represents a 10.13% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Judson Althoff sold 15,500 shares of the stock in a transaction on Monday, June 1st. The stock was sold at an average price of $460.99, for a total transaction of $7,145,345.00. Following the completion of the sale, the chief executive officer owned 110,477 shares in the company, valued at $50,928,792.23. The trade was a 12.30% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 37,310 shares of company stock worth $17,256,219. 0.03% of the stock is owned by corporate insiders.
Microsoft Stock Performance Shares of MSFT opened at $492.43 on Thursday. The stock has a 50-day moving average of $408.32 and a two-hundred day moving average of $407.67. 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. The stock has a market cap of $3.66 trillion, a P/E ratio of 27.42, a P/E/G ratio of 1.62 and a beta of 1.11.
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. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The business had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. During the same period in the prior year, the company earned $3.65 earnings per share. The company’s revenue was up 17.7% on a year-over-year basis. As a group, research analysts predict that Microsoft Corporation will post 19.58 EPS for the current year.
Microsoft Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be given a $0.91 dividend. The ex-dividend date is Thursday, August 20th. This represents a $3.64 dividend on an annualized basis and a yield of 0.7%. Microsoft’s dividend payout ratio is currently 20.27%.
About Microsoft (Free Report)
Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.
Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).
Featured Articles Five stocks we like better than Microsoft GE Vernova’s AI Power Boom Faces a Profit Test Cardinal Health Earnings: Can Perfection Get Priced In Twice? Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand Legacy Jet Builders Stall While Embraer Accelerates to New Highs
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« PREVIOUS HEADLINEEvelyn Partners Investment Management LLP Has $260.47 Million Stock Position in Microsoft Corporation $MSFT
NEXT HEADLINE »Microsoft Corporation $MSFT Stock Position Cut by Elite Wealth Management Inc.
Elite Wealth Management Inc. cut its position in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 4.2% in the first quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 236,280 shares of the software giant’s stock after selling 10,454 shares during the quarter. Microsoft makes up approximately 28.4% of Elite Wealth Management Inc.’s investment portfolio, making the stock its largest holding. Elite Wealth Management Inc.’s holdings in Microsoft were worth $87,464,000 at the end of the most recent reporting period.
A number of other institutional investors have also modified their holdings of the company. WFA Asset Management Corp grew its holdings in Microsoft by 27.0% in the first quarter. WFA Asset Management Corp now owns 1,016 shares of the software giant’s stock worth $427,000 after purchasing an additional 216 shares during the last quarter. Ironwood Wealth Management LLC. increased its position in shares of Microsoft by 0.3% during the second quarter. Ironwood Wealth Management LLC. now owns 12,658 shares of the software giant’s stock worth $5,658,000 after purchasing an additional 38 shares in the last quarter. Discipline Wealth Solutions LLC lifted its holdings in shares of Microsoft by 410.4% during the 3rd quarter. Discipline Wealth Solutions LLC now owns 2,659 shares of the software giant’s stock valued at $1,144,000 after purchasing an additional 2,138 shares during the last quarter. Wealth Group Ltd. boosted its position in shares of Microsoft by 1.2% in the 4th quarter. Wealth Group Ltd. now owns 2,374 shares of the software giant’s stock worth $1,000,000 after purchasing an additional 28 shares in the last quarter. Finally, Eagle Capital Management LLC boosted its position in shares of Microsoft by 0.4% in the 4th quarter. Eagle Capital Management LLC now owns 23,097 shares of the software giant’s stock worth $9,735,000 after purchasing an additional 96 shares in the last quarter. 71.13% of the stock is currently owned by institutional investors.
Key Stories Impacting Microsoft Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Strong quarterly results remain the primary bullish catalyst. Microsoft reported revenue growth of 17.7% and earnings of $4.74 per share, well above consensus, reinforcing confidence in Azure, cloud demand and AI monetization. Magnificent Seven Earnings Remain Robust: MSFT, AAPL Positive Sentiment: Analyst sentiment remains supportive. Wells Fargo raised its Microsoft price target to a Street-high $700 from $650 and maintained an overweight rating, citing the company’s growth prospects and ecosystem strength. Wells Fargo Raises Microsoft Price Target Positive Sentiment: Microsoft is expanding its AI and cloud ecosystem through partnerships, including S&P Global data in Microsoft 365 Copilot, broader enterprise adoption in Brazil and Sionic’s instant-payment service on Microsoft Marketplace. These initiatives could support platform usage and recurring revenue over time. S&P Global Expands Collaboration with Microsoft Neutral Sentiment: Reports that Microsoft may introduce another Maia AI processor as early as September highlight its strategy to use custom chips to improve Azure AI efficiency. The move could reduce costs and reliance on outside suppliers, but the financial benefits will depend on successful scaling. Microsoft Stock Drops While Maia Chip Ambitions Expand Negative Sentiment: Investors are concerned that Microsoft’s rapidly rising AI infrastructure spending could pressure margins, cash flow and returns before new capacity generates sufficient revenue. The stock’s sharp rally since the earnings report also increases profit-taking and valuation sensitivity. Microsoft’s AI Data Center Push: Growth Engine or Capex Trap? Negative Sentiment: A newly disclosed Windows zero-day vulnerability that may enable system-wide access adds reputational, remediation and potential liability concerns. Separate reports of pending investor lawsuits contribute to a cautious tone, although neither issue has yet altered Microsoft’s fundamental earnings outlook. New Windows Zero-Day Bug Published Wall Street Analyst Weigh In Several research analysts recently issued reports on MSFT shares. Citigroup reaffirmed a “buy” rating and set a $600.00 target price (up from $570.00) on shares of Microsoft in a research report on Tuesday, July 28th. DZ Bank restated a “buy” rating on shares of Microsoft in a research note on Thursday, April 30th. Wedbush restated an “outperform” rating and set a $575.00 price objective on shares of Microsoft in a report on Wednesday, May 13th. New Street Research decreased their price objective on shares of Microsoft from $675.00 to $600.00 and set a “buy” rating for the company in a research report on Thursday, April 30th. Finally, Jefferies Financial Group reiterated a “buy” rating on shares of Microsoft in a research note on Monday, May 4th. Forty-two investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat.com, Microsoft currently has an average rating of “Moderate Buy” and an average price target of $560.27.
Get Our Latest Stock Analysis on MSFT
Insider Activity at Microsoft In related news, CEO Judson Althoff sold 10,000 shares of the firm’s stock in a transaction on Wednesday, August 5th. The shares were 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 of the company’s stock, 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 this hyperlink. Also, EVP Takeshi Numoto sold 4,810 shares of the business’s stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the transaction, the executive vice president owned 42,677 shares of the company’s stock, valued at $21,188,276.96. This represents a 10.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 37,310 shares of company stock valued at $17,256,219. Company insiders own 0.03% of the company’s stock.
Microsoft Stock Down 2.3% Shares of MSFT stock opened at $492.43 on Thursday. Microsoft Corporation has a fifty-two week low of $349.20 and a fifty-two week high of $553.72. The firm has a market capitalization of $3.66 trillion, a PE ratio of 27.42, a P/E/G ratio of 1.62 and a beta of 1.11. 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’s 50-day simple moving average is $408.32 and its 200-day simple moving average is $407.67.
Microsoft (NASDAQ:MSFT – Get Free Report) last released its earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping analysts’ consensus estimates of $4.24 by $0.50. The firm had revenue of $90.01 billion during the quarter, compared to the consensus estimate of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The company’s revenue was up 17.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $3.65 earnings per share. Equities analysts expect that Microsoft Corporation will post 19.58 earnings per share for the current year.
Microsoft Announces Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be paid a dividend of $0.91 per share. This represents a $3.64 annualized dividend and a yield of 0.7%. The ex-dividend date is Thursday, August 20th. Microsoft’s payout ratio is presently 20.27%.
Microsoft Profile (Free Report)
Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.
Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).
Featured Articles Five stocks we like better than Microsoft GE Vernova’s AI Power Boom Faces a Profit Test Cardinal Health Earnings: Can Perfection Get Priced In Twice? Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand Legacy Jet Builders Stall While Embraer Accelerates to New Highs 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.
Family Manage LLC grew its stake in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 9.9% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 55,128 shares of the software giant’s stock after acquiring an additional 4,987 shares during the period. Microsoft accounts for approximately 2.4% of Family Manage LLC’s portfolio, making the stock its 10th largest holding. Family Manage LLC’s holdings in Microsoft were worth $20,407,000 as of its most recent SEC filing.
A number of other large investors have also recently made changes to their positions in MSFT. Norges Bank purchased a new position in Microsoft during the 4th quarter valued at about $50,664,631,000. Auto Owners Insurance Co lifted its holdings 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 buying an additional 60,009,531 shares in the last quarter. Nuveen LLC purchased a new stake in shares of Microsoft in the first quarter worth about $18,733,827,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in shares of Microsoft by 500.0% in the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 59,543,261 shares of the software giant’s stock valued at $30,840,432,000 after acquiring an additional 49,618,571 shares during the period. Finally, Laurel Wealth Advisors LLC boosted its position in shares of Microsoft by 49,640.3% in the second quarter. Laurel Wealth Advisors LLC now owns 29,967,038 shares of the software giant’s stock valued at $14,905,904,000 after acquiring an additional 29,906,791 shares during the period. 71.13% of the stock is owned by institutional investors.
Wall Street Analyst Weigh In MSFT has been the subject of a number of recent analyst reports. Benchmark restated a “buy” rating on shares of Microsoft in a research report on Friday, July 24th. BNP Paribas Exane dropped their price objective on Microsoft from $556.00 to $555.00 and set an “outperform” rating for the company in a research note on Friday, May 1st. Mizuho reduced their target price on Microsoft from $515.00 to $490.00 and set an “outperform” rating for the company in a research report on Wednesday, July 15th. Arete Research upped their target price on Microsoft from $730.00 to $870.00 and gave the stock a “buy” rating in a research note on Tuesday, May 5th. Finally, Morgan Stanley reaffirmed an “overweight” rating on shares of Microsoft in a report on Thursday, July 30th. Forty-two investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $560.27.
Read Our Latest Report on MSFT
Microsoft Stock Performance Microsoft stock opened at $492.43 on Thursday. The firm’s fifty day moving average price is $408.32 and its 200-day moving average price is $407.67. 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 market cap of $3.66 trillion, a P/E ratio of 27.42, a price-to-earnings-growth ratio of 1.62 and a beta of 1.11. Microsoft Corporation has a fifty-two week low of $349.20 and a fifty-two week high of $553.72.
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 the consensus estimate of $4.24 by $0.50. The company 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 quarterly revenue was up 17.7% compared to the same quarter last year. During the same period in the previous year, the business earned $3.65 earnings per share. On average, equities research analysts expect that Microsoft Corporation will post 19.58 earnings per share for the current fiscal year.
Microsoft Dividend Announcement The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be paid a dividend of $0.91 per share. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $3.64 annualized dividend and a yield of 0.7%. Microsoft’s payout ratio is 20.27%.
Insider Transactions at Microsoft In related news, EVP Takeshi Numoto sold 4,810 shares of the firm’s 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 transaction, the executive vice president directly 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 position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Judson Althoff sold 15,500 shares of the business’s stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $460.99, for a total value of $7,145,345.00. Following the completion of the sale, the chief executive officer owned 110,477 shares of the company’s stock, valued at $50,928,792.23. The trade was a 12.30% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 37,310 shares of company stock valued at $17,256,219 over the last quarter. Company insiders own 0.03% of the company’s stock.
More Microsoft News Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Strong quarterly results remain the primary bullish catalyst. Microsoft reported revenue growth of 17.7% and earnings of $4.74 per share, well above consensus, reinforcing confidence in Azure, cloud demand and AI monetization. Magnificent Seven Earnings Remain Robust: MSFT, AAPL Positive Sentiment: Analyst sentiment remains supportive. Wells Fargo raised its Microsoft price target to a Street-high $700 from $650 and maintained an overweight rating, citing the company’s growth prospects and ecosystem strength. Wells Fargo Raises Microsoft Price Target Positive Sentiment: Microsoft is expanding its AI and cloud ecosystem through partnerships, including S&P Global data in Microsoft 365 Copilot, broader enterprise adoption in Brazil and Sionic’s instant-payment service on Microsoft Marketplace. These initiatives could support platform usage and recurring revenue over time. S&P Global Expands Collaboration with Microsoft Neutral Sentiment: Reports that Microsoft may introduce another Maia AI processor as early as September highlight its strategy to use custom chips to improve Azure AI efficiency. The move could reduce costs and reliance on outside suppliers, but the financial benefits will depend on successful scaling. Microsoft Stock Drops While Maia Chip Ambitions Expand Negative Sentiment: Investors are concerned that Microsoft’s rapidly rising AI infrastructure spending could pressure margins, cash flow and returns before new capacity generates sufficient revenue. The stock’s sharp rally since the earnings report also increases profit-taking and valuation sensitivity. Microsoft’s AI Data Center Push: Growth Engine or Capex Trap? Negative Sentiment: A newly disclosed Windows zero-day vulnerability that may enable system-wide access adds reputational, remediation and potential liability concerns. Separate reports of pending investor lawsuits contribute to a cautious tone, although neither issue has yet altered Microsoft’s fundamental earnings outlook. New Windows Zero-Day Bug Published Microsoft Profile (Free Report)
Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.
Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).
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Evercore Wealth Management LLC lowered its holdings in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 3.4% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 784,201 shares of the software giant’s stock after selling 27,332 shares during the period. Microsoft comprises 4.6% of Evercore Wealth Management LLC’s portfolio, making the stock its 3rd largest holding. Evercore Wealth Management LLC’s holdings in Microsoft were worth $290,288,000 at the end of the most recent quarter.
Other institutional investors and hedge funds have also recently bought and sold shares of the company. Markel Group Inc. raised its stake in shares of 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 period. Bessemer Group Inc. lifted its holdings in shares of 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 in the last quarter. Taylor Securities Services Inc. bought a new position in shares of Microsoft during the 4th quarter valued at about $2,616,000. Werba Rubin Papier Wealth Management boosted its stake in Microsoft by 15.7% during the fourth quarter. Werba Rubin Papier Wealth Management now owns 12,492 shares of the software giant’s stock valued at $6,041,000 after buying an additional 1,698 shares during the last quarter. Finally, Harel Insurance Investments & Financial Services Ltd. boosted its position in shares of Microsoft by 138.8% during the 1st quarter. Harel Insurance Investments & Financial Services Ltd. now owns 1,356,359 shares of the software giant’s stock valued at $502,077,000 after acquiring an additional 788,297 shares during the last quarter. Institutional investors own 71.13% of the company’s stock.
Wall Street Analyst Weigh In A number of brokerages recently commented on MSFT. Oppenheimer reaffirmed an “outperform” rating and issued a $515.00 price target on shares of Microsoft in a report on Wednesday, July 22nd. Argus cut their price target on shares of Microsoft from $620.00 to $510.00 and set a “buy” rating on the stock in a report on Friday, July 10th. Robert W. Baird reduced their price objective on Microsoft from $540.00 to $500.00 and set an “outperform” rating on the stock in a report on Wednesday, April 15th. Phillip Securities downgraded shares of Microsoft from a “strong-buy” rating to a “moderate buy” rating in a research report on Monday, August 3rd. Finally, Rothschild & Co Redburn reduced their price target on Microsoft from $450.00 to $400.00 and set a “neutral” rating for the company in a research report on Thursday, April 23rd. Forty-two investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $560.27.
Check Out Our Latest Stock Analysis on MSFT
Insider Activity at Microsoft In other Microsoft news, EVP Takeshi Numoto sold 4,810 shares of the business’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 value of $2,388,068.80. Following the completion of the transaction, the executive vice president directly owned 42,677 shares of the company’s stock, valued at approximately $21,188,276.96. The trade was a 10.13% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Judson Althoff sold 15,500 shares of the business’s stock in a transaction on Monday, June 1st. The shares were sold at an average price of $460.99, for a total transaction of $7,145,345.00. Following the completion of the transaction, the chief executive officer owned 110,477 shares of the company’s stock, valued at approximately $50,928,792.23. This represents a 12.30% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 37,310 shares of company stock valued at $17,256,219. 0.03% of the stock is owned by company insiders.
Microsoft News Roundup Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Strong quarterly results remain the primary bullish catalyst. Microsoft reported revenue growth of 17.7% and earnings of $4.74 per share, well above consensus, reinforcing confidence in Azure, cloud demand and AI monetization. Magnificent Seven Earnings Remain Robust: MSFT, AAPL Positive Sentiment: Analyst sentiment remains supportive. Wells Fargo raised its Microsoft price target to a Street-high $700 from $650 and maintained an overweight rating, citing the company’s growth prospects and ecosystem strength. Wells Fargo Raises Microsoft Price Target Positive Sentiment: Microsoft is expanding its AI and cloud ecosystem through partnerships, including S&P Global data in Microsoft 365 Copilot, broader enterprise adoption in Brazil and Sionic’s instant-payment service on Microsoft Marketplace. These initiatives could support platform usage and recurring revenue over time. S&P Global Expands Collaboration with Microsoft Neutral Sentiment: Reports that Microsoft may introduce another Maia AI processor as early as September highlight its strategy to use custom chips to improve Azure AI efficiency. The move could reduce costs and reliance on outside suppliers, but the financial benefits will depend on successful scaling. Microsoft Stock Drops While Maia Chip Ambitions Expand Negative Sentiment: Investors are concerned that Microsoft’s rapidly rising AI infrastructure spending could pressure margins, cash flow and returns before new capacity generates sufficient revenue. The stock’s sharp rally since the earnings report also increases profit-taking and valuation sensitivity. Microsoft’s AI Data Center Push: Growth Engine or Capex Trap? Negative Sentiment: A newly disclosed Windows zero-day vulnerability that may enable system-wide access adds reputational, remediation and potential liability concerns. Separate reports of pending investor lawsuits contribute to a cautious tone, although neither issue has yet altered Microsoft’s fundamental earnings outlook. New Windows Zero-Day Bug Published Microsoft Price Performance NASDAQ MSFT opened at $492.43 on Thursday. Microsoft Corporation has a 1 year low of $349.20 and a 1 year high of $553.72. The company has a market cap of $3.66 trillion, a price-to-earnings ratio of 27.42, a PEG ratio of 1.62 and a beta of 1.11. 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 stock’s fifty day moving average price is $408.32 and its 200 day moving average price is $407.67.
Microsoft (NASDAQ:MSFT – Get Free Report) last released its earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping analysts’ consensus estimates of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The firm had revenue of $90.01 billion during the quarter, compared to the consensus estimate of $87.62 billion. During the same quarter in the previous year, the company posted $3.65 earnings per share. The company’s revenue was up 17.7% compared to the same quarter last year. As a group, equities research analysts forecast that Microsoft Corporation will post 19.58 earnings per share for the current year.
Microsoft Announces Dividend The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be paid a dividend of $0.91 per share. The ex-dividend date is Thursday, August 20th. This represents a $3.64 dividend on an annualized basis and a dividend yield of 0.7%. Microsoft’s dividend payout ratio (DPR) is presently 20.27%.
Microsoft Company Profile (Free Report)
Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.
Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).
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Microsoft (NASDAQ:MSFT | MSFT Price Prediction) trades at $492.43 while the consensus Wall Street price target sits at $567.20, an implied upside of roughly 15%. One firm sees significantly more room. Arete Research recently lifted its target to $870 from $730, a Street-high call that pencils out to about 76% upside from here.
Microsoft is the world’s second-largest company by market value at $3.741 trillion, and its Azure cloud franchise has become the primary vehicle through which Wall Street underwrites the enterprise AI story. When a mega-cap this widely owned trades meaningfully below where analysts price it, it usually signals either a fundamental thesis crack or a market that has temporarily lost the plot.
A Year of Underperformance in an AI Bull Market Microsoft is down 6.21% over the past year while the S&P 500 gained 20.2%. The stock slid steadily through fiscal 2026, from $517.85 at the Q1 filing in October 2025 to $395.50 by the Q4 filing on July 29, 2026.
The catalyst was capital intensity, not results. Microsoft posted a 5th consecutive EPS beat, with Q4 revenue of $90.01 billion (+17.8% YoY) and Azure growth of 43%. The pain point was capital intensity. Full-year capex hit $115.95 billion, up 79.62%, pushing free cash flow down 6.46% to $66.99 billion. Investors also punished the More Personal Computing segment, which fell 4% in Q4.
Why the Analyst Community Is Doubling Down Coverage has not budged. Of 57 analysts, 14 rate Microsoft Strong Buy, 40 rate Buy, 3 rate Hold, and none rate Sell. That is a 95% bullish consensus holding through a year of price weakness, with recent revisions skewing toward upgrades rather than cuts.
The bull case rests on three pillars:
Contracted revenue visibility: Commercial remaining performance obligations surged 84% to $678 billion, a backlog that dwarfs annual revenue. Monetization: Azure crossed $100 billion in full-year revenue for the first time, and Microsoft 365 Copilot passed 30 million paid seats. Capex converting to yield: FY26 net income rose 31.34% to $133.75 billion, showing the infrastructure bet is earning. Arete’s $870 street-high target models sustained double-digit Azure AI growth as enterprise workloads shift from experimentation to core operations, plus Copilot enterprise pull-through. That 76% implied upside captures where the bull tail lives. A 76% call requires several years of clean execution.
The Hyperscaler That Fell Alone Microsoft’s two closest hyperscaler peers ran higher while it slid, so the weakness was stock-specific rather than sector-wide.
Alphabet (NASDAQ:GOOGL) trades at $343.54, up 69.43% over the past year. Google Cloud accelerated to 82% revenue growth in Q2 2026, and analyst sentiment has ridden that momentum.
Amazon (NASDAQ:AMZN) sits at $267.28, up 20.68% over one year. AWS grew 37% YoY in Q2 2026, its fastest pace in 18 quarters. Amazon roughly tracked the S&P 500 while Microsoft lagged badly.
Across this trio, the largest analyst-implied upside sits with Microsoft. It stood alone on the way down, and the setup is now the most stretched.
What the Numbers Actually Say Microsoft currently trades at $492.43 against a $567.20 consensus target drawn from 57 covering analysts. Implied upside to consensus is roughly 15%, and to the Arete high of $870 it is about 76%.
Recent action tells the recovery story. Microsoft is up 25.94% over the past month off the July low, and 2.28% YTD. The S&P 500 is up 13.28% YTD, so Microsoft remains a laggard on the year even after the sharp bounce.
Ratings distribution:
Strong Buy: 14 Buy: 40 Hold: 3 Sell: 0 My Take: The Setup Favors the Bulls, With Guardrails The bull thesis holds if you believe Azure’s 43% growth and the $678 billion cRPO backlog translate into free cash flow re-acceleration once the capex wave normalizes. The path back to $567 needs one or two more quarters of Azure holding above 40%, evidence that Copilot seat expansion is compounding, and any softening in capex growth pace. Hitting Arete’s $870 requires a multi-year re-rating on enterprise AI monetization.
The bear case gains weight if the market’s real message is that AI capex returns are structurally lower than the models assume. Free cash flow already contracted 6.46% in FY26. If Azure decelerates or Copilot attach rates plateau, the stock has room to retest the July lows before the thesis resets.
I lean bullish here. Microsoft is the only one of the three hyperscalers still trading below where it was a year ago, despite beating repeatedly. That is a setup analysts rarely misread all at once.
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Steve Ballmer’s entire fortune, built over four-plus decades as Microsoft (NASDAQ:MSFT | MSFT Price Prediction)’s second employee, its CEO from 2000 to 2014, and now its largest individual shareholder, sits at $172 billion. Elon Musk made roughly that much in about a week as shares of SpaceX (NASDAQ:SPCX) rebounded from a post-earnings selloff into a full-blown rally.
The Ballmer Yardstick Ballmer ranks No. 9 globally on the Bloomberg Billionaires Index. Roughly 90% of his fortune traces to about 333.3 million Microsoft shares (about 4.49% of the company), recently valued around $162 billion. He bought the LA Clippers in 2014 for $2 billion; the team is now worth between $6.7 billion (Bloomberg/Sportico) and $7.5 billion (Forbes). His fortune is anchored in a $3.66 trillion company whose stock is up just 2.28% year-to-date. Ballmer’s net worth moves in tens of millions on a typical day, not tens of billions.
Musk’s Week On Aug. 5, SpaceX shares fell 13% after its first public quarterly report. Revenue of $7.81 billion beat the $6.82 billion consensus and losses came in narrower than expected, but capital expenditures of $18.4 billion in a single quarter, $15.8 billion of it on AI compute, spooked investors. Musk’s net worth bottomed at $701.5 billion (Forbes). Kathleen Brooks, research director at XTB, told The Wall Street Journal: “The concern for investors is how fast expenditure growth is outpacing revenue growth.” On the earnings call, SpaceX CFO Bret Johnsen pushed back: “All capex is not the same.” IG chief market analyst Chris Beauchamp told CNBC: “Part of a SpaceX rocket crashing into the moon this morning is probably a good metaphor for the share price performance so far.”
Then it turned. SpaceX jumped 11.7% on Aug. 7, lifting Musk to $802 billion (Forbes). On Aug. 10 shares closed back above the $135 IPO price. By Aug. 11, SPCX was up 18% over five trading days and Musk hit $847 billion on Bloomberg’s index, a $29.8 billion Monday gain. As of today, Bloomberg pegs him at $884 billion, up $64.3 billion in the latest session and $265 billion year-to-date. SPCX itself closed at $146.15, up 9.65% on the day and 34.99% over the past week.
A Necessary Caveat The comparison blends two different trackers and is closer than the headline implies. The Aug. 5 low comes from Forbes; today’s $884 billion comes from Bloomberg, implying a gain of roughly $182.5 billion. The two publishers routinely diverge by tens of billions due to different valuation methodologies. In the Aug. 7-8 window Bloomberg tracked about $15 billion above Forbes, so a Bloomberg-only weekly gain could land closer to $165 billion, leaving a much thinner margin against Ballmer’s $172 billion, or possibly not clearing it at all.
The Contrast Ballmer’s fortune has been essentially flat all year: down $3.62 billion in the most recent session, up just $3.80 billion year-to-date, against Musk’s swings of tens of billions per session. On Aug. 11, Fortune reported that Ballmer and his wife Connie are splitting their $8 billion in giving into three regional philanthropies, roughly one Musk trading session redirected toward what wealth at this altitude is supposed to do.
A single week’s paper move for one founder now roughly equals a fortune another billionaire spent four decades building. SPCX has round-tripped more than $180 billion of Musk’s net worth in days, a pace of wealth creation and destruction with no historical precedent outside a specific handful of post-IPO tech fortunes. The signal to watch is the next SpaceX earnings report: whether the AI capex ramp keeps accelerating or management moderates the pace investors flinched at on Aug. 5.
Contact [email protected] for any questions or corrections.
As Microsoft Corp. (NASDAQ: MSFT) stock rallied more than 27% since reporting a strong fourth quarter of its 2026 fiscal year, Samik Chatterjee, an analyst at JPMorgan Chase & Co. (NYSE: JPM), expects this company’s share price to hit a new all-time high (ATH) over the next 12 months.
Chatterjee reiterated a ‘Buy’ rating for Microsoft stock, according to a note sent to the bank’s clients on August 13. He also raised his 12-month price target for MSFT to $625 from $550, which represents a 13.64% uplift.
With Microsoft stock trading at approximately $492.43 at press time, this analyst suggests a possible 26.92% upside. This bullish outlook was favored by the company’s growth prospects.
Furthermore, JPMorgan sees Microsoft experiencing a growth acceleration in Azure and M365 Commercial Cloud. Additionally, this analyst noted that the company’s AI infrastructure buildout would be the key underlying driver for acceleration in its businesses.
Most importantly, Chatterjee believes that Microsoft’s combination of high revenue and earnings growth as well as lower capital needs than its peers should justify a return to the historical premium for MSFT shares relative to the broader market.
Wall analysts signal bullish outlook for Microsoft stock Following Chatterjee’s ‘Overweight’, 34 Wall Street analysts surveyed by TipRanks have set an average 12-month price target of $564.49, which implies a potential 14.63% upside. Worth noting that 33 of these surveyed analysts having issued a ‘Buy’ rating for Microsoft stock, and the highest target is roughly $700, while the lowest is $450.
Over the past 30 days, MSFT stock price rallied over 27%, hence closing above June’s peak of near $466.36. As such, Microsoft stock has confirmed an end to its 2026 correction. Microsoft had a market capitalization of $3.7 trillion at the time of publication.
MSFT’s 30D chart. Source: Finbold If MSFT’s stock price continues its recent uptrend, the analysts’ target of an ATH over the next 12 months could happen.
The merger of Microsoft’s consumer and business Copilot apps ;ays the groundwork for the upcoming Copilot “Super App” that Microsoft CEO Satya Nadella has touted to developers and investors. (GeekWire File Photo / Kevin Lisota) Microsoft is starting the process of combining its consumer and business Copilot apps into one, laying the structural foundation for an upcoming “Super App,” and trying to turn the company’s sprawling artificial intelligence brand into a unified product that people actually use.
The move is part of the company’s effort to better compete with ChatGPT, Gemini and Claude, attempting to turn its legacy in workplace technology and cloud infrastructure into a stronger position in AI apps and agents.
It also recognizes the blending of business and personal lives, and the reality that many people use the same AI assistants for both home and work.
The Copilot unification, detailed Thursday in support documents from the company, will take place gradually over the next several weeks, bringing major changes for some existing users.
Several features of the consumer app are going away starting on Aug. 18, including Copilot Podcasts, Group Chat and Deep Research. Also disappearing is Mico, the expressive blob introduced less than a year ago to accompany the consumer Copilot’s voice mode, although Microsoft expects it to live on in some of Copilot’s education features.
Commercial users will see far less change, with Microsoft calling them mostly cosmetic. For example, the Microsoft 365 Copilot app will be known simply as Microsoft Copilot, with a new icon and a new web address.
The unified app is a key step for the company, but it is not, on its own, the launch of the Super App. That larger move will bring together Copilot’s chat, AI coding, Cowork and new AutoPilot agents into a single app. Microsoft CEO Satya Nadella told investors on the company’s July 29 earnings call that the Super App will be out this quarter, meaning by the end of September.
The broader initiative is an attempt to remake and unify Copilot under Jacob Andreou, the former Snap executive Nadella put in charge of the product in March. Mustafa Suleyman, the DeepMind and Inflection co-founder who had run Microsoft’s consumer AI efforts since 2024, shifted to a narrower role at the time, focused on developing new AI models.
Andreou detailed the move in a memo to his 11,000-person organization in early July, as reported by The Information, citing the need to move on from features that weren’t gaining traction, and “earn and respect the right to exist in our customers’ lives.”
Microsoft said last month that Microsoft 365 Copilot surpassed 30 million paid seats, up from 20 million in April, with net seat additions more than doubling quarter over quarter. That amounts to just about 7% of the more than 450 million commercial Microsoft 365 paid seats the company reported in January.
Microsoft doesn’t disclose how many people use the consumer Copilot app, but Sensor Tower estimated 38.5 million monthly users in July, a fraction of ChatGPT’s 1 billion monthly users.
Here is more on what Copilot users can expect:
Gradual rollout: Migration will begin this week with a small group of Windows Insiders and will expand more broadly next week. Worldwide rollout will start with mobile and web in mid-August; Windows and Mac apps will follow in mid-September. Users will see the change at different times, and Microsoft says that’s expected. Mobile users will need to download an updated app.
Unified app and name: The consumer and commercial apps will become a single app called Microsoft Copilot, with a refreshed icon. The commercial web address will move from m365.cloud.microsoft to copilot.cloud.microsoft, with automatic redirects beginning in late August.
Work and personal will stay separate: Users will be able to sign in with a personal account, a work or school account, or both, and switch between them in the app.
Microsoft says data won’t flow between the two, employers won’t be able to see personal activity, and enterprise security, compliance and administrative controls will remain unchanged.
Chats and content will persist: Chat history, images and other content created in the consumer app will migrate to the new one. Files shared with or generated by Copilot will move to OneDrive, where additional storage requires a paid plan.
Deep Research will get only a partial replacement: Deep Research generates long, detailed reports by searching the web and pulling sources together. It’s being retired for consumers, and the substitute, a similar tool called Researcher, will be available only to subscribers of Microsoft 365 Premium, a higher tier than the Personal and Family plans.
Personal and Family subscribers will still be able to open their old reports from chat history and save them to Word, but won’t be able to create new ones.
Podcasts and Group Chat will go away: Group chat threads, messages and the images created in them will disappear after Aug. 18. Copilot podcasts — the AI-generated audio discussions the app made from websites and uploaded documents — will need to be downloaded individually from the podcast library before then.
Some features will be temporarily unavailable: Shopping and Copilot Health may be missing for some consumer users mid-migration. Microsoft says both will return, and that heavy Health users will be migrated later so the feature will be waiting when they arrive.
Free limits may tighten: Microsoft says core Copilot chat will stay free “subject to capacity and limits,” but that some users will hit those limits sooner than they do today. Those who do can buy a paid Microsoft 365 plan, such as Personal or Family, which come with higher usage limits.
Implications for IT departments: Recall, the Windows feature that periodically captures screenshots of a user’s activity for subsequent AI searching, can be configured to leave certain apps out of those screenshots. Organizations that excluded the old Copilot app will need to apply that setting again to the new one. The exclusion won’t carry over automatically.
SummaryCompaniesMicrosoft shut at least 15 China branch offices and joint ventures in past five years, filings showTech firm badly hit by Beijing's push for domestic software, as well as U.S. export restrictionsCompany considered quitting China in 2023 but has no current exit plans, source saysMicrosoft has found a profitable line servicing Chinese companies going globalBEIJING/SHANGHAI, Aug 13 (Reuters) - Microsoft once regarded the idea of quitting China as unthinkable.
The year was 2010 and Google was about to exit due to concerns over censorship and cyberattacks. That decision was lauded by democracy activists, but not Bill Gates and Microsoft's then-CEO Steve Ballmer, who suggested Google was overreacting.
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In the past five years, however, at least 15 Microsoft branch offices and joint ventures in China have been shut, corporate filings show, and Microsoft is pursuing what five company sources described as a strategy of retreat.
The firm considered quitting the market in 2023 because some executives felt it took on too much geopolitical risk for too little economic return, one of them said, while stressing Microsoft has no current plans to exit. China accounted for just 1.5% of global revenue, Microsoft said in 2024.
Microsoft took a major hit from the erosion of trust between Washington and Beijing, the five people said. China has since 2017 pushed the use of domestic software, which Beijing sees as more secure and whose quality is increasingly competitive with Windows and Office. U.S. restrictions, including export controls on advanced technology, have meanwhile hindered efforts to scale Microsoft's lucrative AI and cloud businesses in China.
Details of Microsoft's internal deliberations about its future in China have not previously been reported.
Other U.S. tech giants with large China businesses are also reconsidering their exposure amid geopolitical tensions. Apple plans to manufacture in India most iPhones sold to Americans by the end of 2026, while Elon Musk last month denied reports that Tesla is debating separating its China business.
Microsoft ultimately decided to remain because it had carved out a profitable business servicing Chinese companies like TikTok owner ByteDance, which need Western technology to manage overseas operations, according to three people familiar with the matter. The company also believed that it needed a presence to maintain access to China's world-class engineering talent, two of them said.
Microsoft had also cultivated a relationship with the government that is among the deepest of any tech company, its former China head Alain Crozier told Reuters. "Because of the geopolitics … some days it's a little bit harder, but we never had a crisis," he said.
A Microsoft spokesperson did not address questions about the firm's deliberations on its China business but said it operates in a regulatory "environment that applies to every international supplier" and that it remains committed to the Chinese market.
The state of Microsoft's China business reflects market competition, regulatory demands and technological trends, the company said.
ByteDance did not respond to questions about its relationship with Microsoft.
FILE PHOTO: Microsoft Chairman and founder Bill Gates pauses to read a sign while touring Coal Hill in Beijing, China, March 23, 1994. REUTERS/Dennis Owen Purchase Licensing Rights, opens new tab
CHINA BLUESMicrosoft's engagement with the highest levels of China's government dates back to the early 1990s. Gates made the first of his many visits in 1994 and was received by President Jiang Zemin, who advised the Microsoft co-founder to study Chinese history.
The company has since made various efforts to build a relationship with the ruling Communist Party. Microsoft co-invested in startup incubators with the government and complied with censorship requirements that Google — now part of Alphabet — could not countenance.
By the mid-2010s, however, China had become increasingly suspicious of Western technology after revelations that U.S. firms had helped Washington spy on foreign governments. That was problematic for Microsoft as China's largest companies are either state-owned or maintain close government ties.
Microsoft's response was Windows 10 China Government Edition, whose release was personally negotiated between chief executive Satya Nadella and finance ministry officials, according to a person familiar with the matter.
The product was adopted by several government agencies, but did not take off as Microsoft hoped, said Crozier, who ran China operations through 2021.
At around the time of the Windows announcement in 2017, the Chinese government introduced new procurement guidelines that it billed as a framework for purchasing "safe and reliable" services. No foreign operating system, including Windows, has been regarded by the government as compliant with those policies, Microsoft said.
Non-compliance did not mean products were banned but it subjected tech administrators who used such services to scrutiny, including having to run more security checks and seek additional approval, said Paul Triolo, a Washington-based China tech policy expert at DGA-Albright Stonebridge Group.
Reuters reviewed six Chinese government computer-system procurement guides published between December 2023 and May 2026. Five did not recommend Microsoft. The sixth included Windows 10 China Government Edition but said its usage was subject to "additional management requirements," without elaborating.
The Chinese tech and finance ministries did not respond to questions about the effect of regulations on Microsoft's business.
U.S. businesses operating in China, which have long complained about an uneven playing field, have had their confidence further dented by deteriorating Sino-American ties. Just 52% of respondents to the American Chamber of Commerce in China's latest business climate survey said China was a top global investment priority, down from 62% in 2019.
While its efforts to become the Chinese state's tech vendor of choice did not pay off, Microsoft found a second wind with the private sector.
Firms like ByteDance and ultra-fast-fashion retailer Shein have key businesses serving Western customers and rely on Microsoft's Azure cloud to manage data in compliance with foreign regulations, two company sources said. Microsoft also offers Chinese enterprise clients exclusive access via Azure to Western AI models from providers like OpenAI, which do not serve China.
By the mid-2020s, helping Chinese firms go global had become Microsoft's largest China-linked business, three people said. Two of them stressed that sales remained small by the firm's global standards.
Analysts have additionally questioned the sustainability of that AI business, which relies on third-party suppliers like OpenAI. Chinese businesses also do not need Azure if they use domestic AI models like Kimi, which are increasingly competitive with Western alternatives while being far cheaper.
OpenAI and Shein did not respond to questions.
HUMAN CAPITALMicrosoft has since the 1990s played a central role in building China's tech talent base.
Alongside hiring commercially focused engineers, it also established Microsoft Research China, which concentrates on advanced technologies. The lab's alumni include senior leaders at AI pioneers SenseTime and DeepSeek.
But the recent political pressures have affected Microsoft's ability to retain talent.
U.S. export controls on chips and AI models have restricted the access of Microsoft's China-based engineers to cutting-edge technology. The firm doesn't conduct research on quantum computing and other sensitive technologies in China, Microsoft president Brad Smith told U.S. lawmakers in 2023.
Microsoft considered shutting the lab down but ultimately decided to relocate some top talent, according to two people familiar with the matter. Since the U.S. began restricting AI exports, Microsoft Research China — now known as Microsoft Research Asia — has opened labs in Vancouver, Singapore and Tokyo.
The firm has, however, struggled to convince developers to leave China. It offered 1,000 top engineers relocation to the U.S. and three other Western countries in 2024, but only about a third accepted, the sources said.
Microsoft confirmed it offered transfer opportunities that year but declined to provide more details.
Many senior engineers instead left for Chinese universities and tech firms, where they can conduct top-level research while remaining close to family, both sources said.
Microsoft had previously warded off poaching efforts by domestic rivals. The firm had an attrition rate of roughly 17% in the mid-2010s, though Crozier said Microsoft reduced it to under 10% by growing new businesses, like servicing ByteDance, and offering staff global opportunities.
There is "up and down in terms of the number of people and maybe some of the things that were developed over there," he said. "But we never change one inch of the fact that we will bring technology into China… for China, for Chinese companies."
Reporting by Eduardo Baptista in Beijing and Casey Hall in Shanghai; Editing by Katerina Ang
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Eduardo Baptista is Chief Technology Correspondent, Greater China, for Reuters, based in Beijing. He covers artificial intelligence, semiconductors and emerging technologies. He holds a BA in History from the University of Cambridge.
Casey is the Shanghai bureau chief and a senior correspondent covering companies in China, reporting on the biggest issues facing local and global businesses operating in the world's second largest economy. The Australian-born journalist has been based in Shanghai since 2007.
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August is a natural checkpoint for long-term portfolios. Positions get reviewed, winners and laggards get weighed against multi-year theses, and investors ask a simple question: which mega-caps still have room to compound meaningfully from here? A double by 2030 requires roughly a 16% annualized return, which sits at the upper end of what mature large-caps can deliver. It is a scenario with conditions attached. But three Nasdaq stalwarts have the earnings power, backlog visibility, and platform economics to make the math plausible.
Each of the names below carries a mega-cap footprint (all above $3.7 trillion in market value), pays a dividend, and generates the kind of margins that fund both AI capex and shareholder returns. The bull path is quantifiable.
Apple (AAPL) Apple (NASDAQ:AAPL | AAPL Price Prediction) trades at $304.91 as of August 11, 2026, with a market cap of roughly $4.5 trillion and a forward P/E of 33x. The stock is up 34.71% over the past year and 12.47% year to date.
The bull case rests on three planks. First, iPhone 17 demand: Q3 FY26 revenue hit $109.42 billion, up 16.4% YoY, with iPhone revenue climbing to $54.25 billion from $44.58 billion a year earlier. Second, Services, a high-margin recurring engine, grew to $30.74 billion. Third, capital returns: management authorized a fresh $100 billion buyback and hiked the dividend 4% to $0.27 quarterly. Tim Cook called it the "strongest June quarter ever, with double-digit revenue growth across iPhone, Mac and Services, and in every geographic segment."
Analysts skew constructive: 61% bullish with a target of $322.82. Risk: Q3 gross margin got roughly 2 points of benefit from one-time tariff refunds, and a premium P/E leaves thin cushion if China exposure flares. The base 5-year projection points to $521.08, roughly a 70.9% total return, meaning buybacks and Services need to accelerate for a full double.
Microsoft (MSFT) Microsoft (NASDAQ:MSFT) closed at $503.81, up 30.83% in the past month after a knockout Q4. Forward P/E sits at 25x, and the stock still trades 2% below its 52-week high of $550.24.
Q4 FY26 revenue reached $90.01 billion, up 17.8% YoY, with non-GAAP EPS of $4.74 beating estimates by 11.81%. Azure grew 43% and crossed $100 billion in annual revenue for the first time. Commercial remaining performance obligations expanded 84% to $678 billion, a contracted backlog that provides remarkable revenue visibility deep into the decade. Copilot passed 30 million paid seats. Satya Nadella framed the year plainly: "This year, Azure revenue surpassed $100 billion for the first time, and Microsoft 365 Copilot reached over 30 million paid seats."
Analyst sentiment is emphatic: 95% bullish with a target of $563.84. Risk: FY26 CapEx hit $115.95 billion, up 79.6%, pressuring free cash flow (down 6.5% to $66.99 billion), and Q4 EPS was aided by a $3.2 billion Anthropic gain. A double by 2030 requires AI ROI to translate into durable operating leverage.
Alphabet (GOOGL) Alphabet (NASDAQ:GOOGL) is the cleanest math of the three. At $343.80, shares are up 71.53% over the past year, yet the forward P/E is still just 17x. That is the lowest multiple in the group despite the fastest revenue growth.
Q2 FY26 revenue landed at $119.80 billion, up 24.2%. Google Cloud grew 82% to $24.77 billion, accelerating rather than decelerating, with nearly 90% of the Fortune 100 using Gemini Enterprise. The Gemini app reached 950 million monthly active users, and Waymo hit 500,000+ fully autonomous rides per week. Sundar Pichai summarized: "Q2 was an amazing quarter… Google Cloud revenues accelerating to 82% growth, driven by demand for AI infrastructure and AI solutions."
Analyst consensus is 91% bullish with a target of $428.04. Base case 5-year projection points to $726.95, a 111.45% total return that clears the doubling bar. Risk: Q2 CapEx of $44.92 billion pushed free cash flow to negative $5.86 billion, buybacks were suspended, and long-term debt more than doubled to $98.2 billion. Earnings volatility from unrealized equity gains adds noise.
What Investors Should Watch The doubling thesis varies by name. Alphabet’s model math already gets there in the base case; Apple and Microsoft need continued execution against ambitious AI and services roadmaps. Watch Azure growth durability, Apple Services margin, and Google Cloud backlog conversion. Those three variables will determine whether 2030 delivers a double or a respectable but shorter climb.
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FRANKFURT, Germany--(BUSINESS WIRE)---- $III #AI--Enterprises in Germany are changing their approach to Microsoft technologies as the company's platforms grow and consolidate, ISG says.
SummaryMicrosoft delivered robust Q4 results, with 18% YoY revenue growth and a strong performance from Intelligent Cloud and Productivity & Business Processes.Intelligent Cloud segment accelerated to 31% constant currency growth, with Azure up 43%, justifying elevated CapEx.Guidance for Q1 implies continued strength, with revenue growth expected to be at 33% for Intelligent Cloud, reinforcing the bullish outlook.I reaffirm my strong buy rating on Microsoft, citing attractive valuation, resilient fundamentals, and a favorable risk/reward profile despite regulatory and supply chain risks. wellesenterprises/iStock Editorial via Getty Images
Introduction In mid May, I reiterated my strong buy rating on Microsoft Corporation (MSFT) and called the stock a table-pounding buy. I cited overblown SaaSpocalypse fears, strong performance in Azure, and an attractive valuation. I believe
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