In the latest close session, Microsoft (MSFT - Free Report) was up +2.15% at $402.29. The stock's performance was ahead of the S&P 500's daily loss of 0.19%. On the other hand, the Dow registered a loss of 0.59%, and the technology-centric Nasdaq decreased by 0.05%.
Coming into today, shares of the software maker had gained 3.8% in the past month. In that same time, the Computer and Technology sector lost 4.32%, while the S&P 500 gained 0.55%.
Market participants will be closely following the financial results of Microsoft in its upcoming release. The company plans to announce its earnings on July 29, 2026. The company is forecasted to report an EPS of $4.21, showcasing a 15.34% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $87.42 billion, reflecting a 14.36% rise from the equivalent quarter last year.
MSFT's full-year Zacks Consensus Estimates are calling for earnings of $17.33 per share and revenue of $329.24 billion. These results would represent year-over-year changes of +27.05% and +16.87%, respectively.
Any recent changes to analyst estimates for Microsoft should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.16% higher within the past month. Currently, Microsoft is carrying a Zacks Rank of #3 (Hold).
Investors should also note Microsoft's current valuation metrics, including its Forward P/E ratio of 20.39. This represents a premium compared to its industry average Forward P/E of 15.74.
Also, we should mention that MSFT has a PEG ratio of 1.19. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. MSFT's industry had an average PEG ratio of 1.32 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 102, finds itself in the top 42% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Microsoft Corp (NASDAQ:MSFT)'s fiscal fourth quarter results will be a key test of the company's AI execution, with Azure growth, AI infrastructure spending and Microsoft 365 Copilot adoption expected to be the main focus when the software giant reports, according to Bank of America analysts.
The analysts wrote that "AI execution remains the central debate" heading into the results, adding that fiscal 2027 commentary on Azure growth, data center buildout and AI backlog conversion will also be closely watched.
The analysts highlighted that Azure remains the key metric for investors, with Microsoft previously guiding for 39% to 40% year-over-year growth in constant currency. They wrote that demand continues to outpace capacity, while the company's first Fairwater data center facility in Wisconsin is now fully operational, supporting the conversion of commercial remaining performance obligations (RPO) into revenue.
The analysts highlighted Microsoft's $627 billion commercial RPO balance reported last quarter and noted that management expects about 25% of that amount to be recognized over the next 12 months, which they said could help validate Microsoft's AI investment strategy.
Bank of America estimates Q4 capital expenditures, including finance leases, will total about $42 billion, up 32% from the prior quarter and 74% from a year earlier, as Microsoft continues expanding AI compute capacity. The analysts expect the higher spending to pressure free cash flow in the near term and wrote that Azure growth at or above the company's 39% to 40% outlook is likely needed to support the stock, while a weaker result could raise concerns about returns on AI investments.
The analysts also identified Microsoft 365 Copilot adoption and broader AI monetization as important proof points. Copilot reached 20 million paid seats in the third quarter after adding 5 million sequentially, while AI annual recurring revenue exceeded $37 billion, up 123% year over year. They expect both metrics to continue growing as AI capacity expands.
For the quarter, the Bank of America analysts forecast revenue of $87.4 billion, up 14.4% from a year earlier, driven by Intelligent Cloud revenue of $38.1 billion and Productivity and Business Processes revenue of $37.3 billion. They expect More Personal Computing revenue to decline 10.5% year over year to $12 billion, reflecting ongoing gaming headwinds.
The analysts reiterated a ‘Buy’ rating and a $500 price target on Microsoft shares, implying upside from current levels of about $400.
Microsoft Corp (NASDAQ:MSFT)'s fiscal fourth quarter results will be a key test of the company's AI execution, with Azure growth, AI infrastructure spending and Microsoft 365 Copilot adoption expected to be the main focus when the software giant reports, according to Bank of America analysts.
The analysts wrote that "AI execution remains the central debate" heading into the results, adding that fiscal 2027 commentary on Azure growth, data center buildout and AI backlog conversion will also be closely watched.
The analysts highlighted that Azure remains the key metric for investors, with Microsoft previously guiding for 39% to 40% year-over-year growth in constant currency. They wrote that demand continues to outpace capacity, while the company's first Fairwater data center facility in Wisconsin is now fully operational, supporting the conversion of commercial remaining performance obligations (RPO) into revenue.
The analysts highlighted Microsoft's $627 billion commercial RPO balance reported last quarter and noted that management expects about 25% of that amount to be recognized over the next 12 months, which they said could help validate Microsoft's AI investment strategy.
Bank of America estimates Q4 capital expenditures, including finance leases, will total about $42 billion, up 32% from the prior quarter and 74% from a year earlier, as Microsoft continues expanding AI compute capacity. The analysts expect the higher spending to pressure free cash flow in the near term and wrote that Azure growth at or above the company's 39% to 40% outlook is likely needed to support the stock, while a weaker result could raise concerns about returns on AI investments.
The analysts also identified Microsoft 365 Copilot adoption and broader AI monetization as important proof points. Copilot reached 20 million paid seats in the third quarter after adding 5 million sequentially, while AI annual recurring revenue exceeded $37 billion, up 123% year over year. They expect both metrics to continue growing as AI capacity expands.
For the quarter, the Bank of America analysts forecast revenue of $87.4 billion, up 14.4% from a year earlier, driven by Intelligent Cloud revenue of $38.1 billion and Productivity and Business Processes revenue of $37.3 billion. They expect More Personal Computing revenue to decline 10.5% year over year to $12 billion, reflecting ongoing gaming headwinds.
The analysts reiterated a ‘Buy’ rating and a $500 price target on Microsoft shares, implying upside from current levels of about $400.
Microsoft (MSFT) faces mounting concerns over Azure's lagging acceleration versus AWS and Google Cloud, despite continued 30%+ growth rates. MSFT's software business, while high-margin, risks losing its distribution advantage as Copilot adoption and AI capabilities trail leading frontier labs. Legacy segments like Windows and Xbox are dragging on MSFT's growth; divestiture could be a strategic solution but remains unaddressed.
Despite producing record cash from its business, the e-commerce and cloud giant has watched its free cash flow evaporate as AI infrastructure spending accelerates.
The contrast highlights an emerging reality of the AI arms race: generating cash is no longer the challenge. Keeping it is.
Big Tech’s Cash Machines Keep Getting BiggerOperating cash flow — the cash generated from day-to-day business operations — has surged across the largest technology companies over the past three years.
Microsoft’s operating cash flow has climbed from $89.03 billion in 2022 to $169.65 billion on a trailing 12-month basis, per Benzinga’s MSFT Report.
Alphabet has nearly doubled its operating cash generation over the same period, rising from $91.50 billion to $174.35 billion, while Meta’s operating cash flow has jumped from $50.47 billion to $124 billion.
Amazon’s growth has been equally impressive. The company has more than tripled its operating cash flow from $46.75 billion in 2022 to $148.53 billion over the trailing 12 months, underscoring the strength of its retail operations and AWS cloud business.
On the surface, Big Tech has never looked healthier.
Amazon’s Free Cash Flow Tells A Different StoryBut one number stands out.
Amazon’s free cash flow has swung from $32.88 billion in 2024 to $7.69 billion in 2025, before turning negative $2.47 billion on a trailing 12-month basis.
By comparison, Microsoft’s trailing free cash flow remains at $72.92 billion, Alphabet’s at $64.43 billion, and Meta’s at $48.25 billion.
The divergence suggests Amazon is reinvesting virtually every additional dollar it generates back into the business, largely to fund the enormous infrastructure buildout required to support artificial intelligence workloads.
Chief Executive Andy Jassy has repeatedly described AI as a once-in-a-generation opportunity, with Amazon pouring tens of billions of dollars into expanding AWS data centers, custom Trainium chips and broader cloud infrastructure.
AI Is Changing The Cash EquationThe numbers illustrate a shift that investors may increasingly need to watch.
For years, Big Tech’s biggest attraction wasn’t just rapid revenue growth—it was the ability to convert that growth into massive amounts of free cash, fueling share buybacks, acquisitions and strategic investments.
Today, AI is changing that equation.
Microsoft, Alphabet and Meta continue to generate enormous free cash flow even as spending rises. Amazon, however, is offering an early glimpse of what happens when AI infrastructure investment begins consuming nearly all of the cash a company generates.
That doesn’t necessarily make Amazon’s strategy a negative one. If today’s investments produce years of AI-driven growth through AWS, they could strengthen the company’s long-term competitive position.
For investors, however, the AI story is evolving. Revenue growth remains important, but the next question may be even more consequential: how much of Big Tech’s record cash generation actually makes it back to shareholders—and how much is being recycled into the AI arms race?
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Microsoft (NASDAQ:MSFT | MSFT Price Prediction) briefly touched the $4 trillion market cap club before losing ground. Shares now trade at $393.82, down 18.21% year to date, even as CEO Satya Nadella told investors “Our AI business surpassed an annual revenue run rate of $37 billion, up 123% year-over-year.”
Azure still grows 40%. Commercial RPO sits at $627 billion. Can Microsoft reclaim $540 per share, the level that puts it back in the $4 trillion club, by the end of 2027?
What’s Holding Microsoft Back Right Now Shares are off 22.42% over the past year and only up 3.93% in the last month after a 2.26% weekly bounce.
Two headwinds loom. First, a securities class action filed on July 19, 2026 alleges Microsoft made misleading statements about Copilot performance and AI capex between May 1, 2025 and January 28, 2026.
Second, investors are choking on capex intensity. Q3 FY26 capital expenditures ballooned to $30.88 billion, up 84.39% YoY. With a beta of 1.13, MSFT was never going to escape a sector derating unscathed. The multiple is compressed while the market waits for AI monetization to catch up to spending.
Wall Street Sees 42% Upside. Our Model Says 28% Analyst consensus target sits at $558.21, with 13 Strong Buy, 41 Buy, 3 Hold, and zero Sell ratings. That is 95% bullish sentiment. My base case is more measured at $503.03, or 27.73% upside, with a bull case of $600.73 and a bear case of $446.41. Confidence sits at 90%.
Analysts are directionally right but too aggressive on near-term multiple recovery. Earnings growth of 23.4% YoY supports rerating, but not in a straight line while capex peaks.
The Path to $540 Per Share Reaching $540 from today’s price of $393.82 requires a 37.1% gain. That level puts Microsoft’s market cap back above $4 trillion given 7.43 billion shares outstanding. With forward EPS of $18.89, a price of $540 implies a forward P/E of 29x. My base case of $503.03 already implies 24x, meaning the $4T target requires 4.3x additional multiple expansion.
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Is that reachable? Yes. Microsoft has beaten EPS estimates in 7 of the last 8 quarters, capped by a 31.63% surprise in Q4 FY25. Commercial RPO nearly doubled year over year. Nadella called this the “agentic computing era”.
If capex peaks in FY27 and AI revenue compounds at triple digits, forward EPS estimates rerate higher and 28x on rising earnings becomes math, not hope. Primary risk: Copilot monetization stalls and Azure growth decelerates before capex normalizes.
The Valuation Case for Microsoft Right Now At $393.82, MSFT trades at roughly 21x forward EPS of $18.89. That is cheap for a business compounding earnings above 20% with 45%+ operating margins. Shares sit 1% below the 52-week high of $551.05 only because the market recently tested the $349.20 low.
Over the last decade, MSFT has returned 739.01%. This is the cheapest Microsoft has looked relative to earnings power in years, right as AI revenue scales fastest.
Is $540 Realistic? Reclaiming $540 and the $4 trillion club requires a 37.1% gain. My verdict: realistic by year end 2027, a stretch by mid 2027.
Three things need to break right. Azure has to stay pinned near 40% growth. Copilot needs a monetization inflection that quiets the lawsuit narrative. Capex intensity has to plateau, letting free cash flow reaccelerate. A cloud growth deceleration below 30% would gut the rerating thesis fast. We’ve outlined the blueprint for how Microsoft could reach $540 in 2027.
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by Lisa Stiffler on Jul 20, 2026 at 10:35 amJuly 20, 2026 at 10:41 am
Melanie Nakagawa, Microsoft chief sustainability officer, left, speaking with GeekWire reporter Lisa Stiffler at a fireside chat at Seattle City Hall on July 17. (PNW Climate Week / Fer Sagastume Photo) Microsoft Chief Sustainability Officer Melanie Nakagawa faced a barrage of pointed questions from the audience Friday during a session at the annual Pacific Northwest Climate Week in Seattle.
Protesters challenged Nakagawa through most of the 30-minute session held in a conference room at Seattle’s City Hall, calling out the company’s use of fossil fuel energy sources to power its AI data centers and challenging Microsoft’s commitment to climate goals set years ago.
As a reporter covering sustainability issues for GeekWire, I moderated the session. Many of the issues raised by the crowd were on my list of questions for Nakagawa. The disruptions also included chants from protesters seated among attendees, at times going beyond climate issues to condemn Microsoft’s technology deals with Israel.
Security guards ultimately ushered some protesters out of the space, while others remained. Interruptions from the audience continued for all but the final 10 minutes of the session.
The event capped off Pacific Northwest Climate Week, which included conversations around the city and region about climate change solutions, policies and innovations.
Microsoft has for many years been viewed as an environmental corporate leader, setting an ambitious goal in 2020 to become carbon negative within a decade. It created an internal carbon tax — one of the corporate world’s largest — that charges individual Microsoft divisions for emissions from sources like air travel to fund climate-friendly initiatives. The company is credited with helping create and sustain the carbon dioxide removal sector, among other roles.
But the rapid expansion of AI data centers and their huge energy demands are undercutting Microsoft’s standing. The company recently released its annual sustainability report, disclosing that its carbon footprint grew 25% last year, moving it further from its 2030 target.
Microsoft CSO Melanie Nakagawa, left, and GeekWire reporter Lisa Stiffler before a fireside chat was derailed by protesters. (PNW Climate Week / Fer Sagastume Photo) One protester’s question was about a deal announced earlier this year in which Microsoft is partnering with Chevron to build a 2.7 gigawatt natural gas facility to power a data center campus in Texas. I asked Nakagawa how the company defends the agreement, and she pointed to the 4.7 gigawatts of renewable energy that Microsoft has supported in the state. I followed up by asking about the Redmond, Wash.-based company’s commitment to carbon dioxide removal (CDR) projects given recent reports about a pause on new deals.
Nakagawa was unable to answer before the crowd drowned her out with a call-and-response chant: “Microsoft, you can’t hide. We can see your dirty side.”
Another protester criticized the escalating pursuit of AI. “You’re selling us a product that we don’t even need, and we never should ask for,” he said. “No one wants AI. You’re destroying the climate with AI.”
I brought up legislation proposed earlier this year in Washington to mandate clean energy use and bring transparency to data center impacts in the state. Microsoft opposed and helped defeat the bill, though the company says it wants to work with lawmakers to pass rules next year. I asked what needed to change in the legislation for Microsoft to support it.
Nakagawa didn’t provide specifics, but noted that this year, for the first time, the company shared facility-level information in its annual report on electricity and water use for data centers worldwide.
“People want to know more about the data, and we believe you can have an honest and candid conversation with transparency and access to that information and data,” she said.
Given the obvious public concerns, I asked Nakagawa, “Do you really honestly believe that by 2030, the company can hit that carbon-negative goal?”
Nakagawa pointed to wide-ranging initiatives that are starting to help curb specific emissions, including investments to make Xbox devices lower carbon and financial support for the recent opening of a production plant in Moses Lake, Wash., for sustainable aviation fuel company Twelve.
“There are a couple areas where we’re seeing a lot of promising progress,” she said. “Look, this is going to be a hard target. We’ve not been at all shying away from the fact that this is a difficult goal.”
MSFT stock is moving. See the chart and price action here. Valuation CaseThe valuation argument reflects both durability and margin expansion. Microsoft still trades at a premium, with a forward price-to-earnings ratio of 20.284, according to Benzinga Pro.
Morningstar believes the market underestimates long-term cash flow growth, supported by strong free cash flow, consistent double-digit revenue gains and rising operating leverage. A growing mix of subscription and cloud revenue improves earnings quality and reduces volatility.
Cloud and AI LeadershipCloud and AI remain central to the thesis. Microsoft stands among a small group of hyperscale providers offering broad platform and infrastructure services.
Its investment in OpenAI strengthens its role in enterprise AI adoption. This positioning supports long-term demand across industries adopting automation and data-driven tools.
Azure as the Core EngineAzure drives much of Microsoft’s growth. The platform generates roughly $75 billion in annual revenue and continues expanding at nearly 30%. Its hybrid cloud model allows companies to shift workloads gradually while maintaining existing systems. The flexibility lowers adoption friction and strengthens customer retention over time.
Ecosystem AdvantageMicrosoft’s installed base across Windows, Office and enterprise tools creates a powerful funnel into Azure. Customers can move data and applications seamlessly into the cloud within the same ecosystem. This structure increases switching costs and deepens customer relationships as Azure also serves as a foundation for AI, analytics and Internet of Things workloads.
The company’s transition to cloud-based software is largely complete. Office 365, LinkedIn, Dynamics 365, and the Power Platform now run on subscription models. Office maintains dominance in productivity software, while premium tiers increase revenue per user. Gaming is also shifting toward cloud delivery and recurring revenue streams.
Key RisksThe Bottom LineMorningstar’s thesis depends on sustained execution. Continued leadership in cloud and AI, combined with expanding margins, supports the view that Microsoft trades more like a value opportunity than a fully priced growth stock.
MSFT Stock Price Activity: Microsoft stock was up 2.08% at $402.00 at the time of publication Monday, according to data from Benzinga Pro.
Over the past month, MSFT has gained about 7.0% versus a 0.5% decline in the S&P 500 and is down roughly 17% year-to-date compared to the index’s 8.5% gain.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Wall Street's Reassessment of Microsoft's AI Monetization Claims Cost MSFT Investors Billions as Analyst Sentiment Shifted From Euphoria to Skepticism Wall Street's Reassessment of Microsoft's AI Monetization Claims Cost MSFT Investors Billions as Analyst Sentiment Shifted From Euphoria to Skepticism
Microsoft Corp. (NASDAQ:MSFT) stock is trading higher by almost 1% on Monday as big-cap technology stocks advance in a broader risk-on session.
The Nasdaq has gained almost 1%, while the S&P 500 is up 0.33%. Technology is leading all sectors with a 0.9% gain.
Investors are also looking ahead to Microsoft’s fiscal fourth-quarter earnings on July 29, with Wall Street closely watching Azure cloud growth, artificial intelligence monetization and capital spending, according to a new Bank of America research note.
Azure Growth Remains The Top MetricBank of America reiterated its Buy rating on Microsoft and maintained its $500 price forecast, saying Azure’s growth trajectory will likely determine investor sentiment after earnings. The firm expects Azure revenue growth of 39.5% in constant currency, near the company’s guidance of 39% to 40%.
The analysts said demand continues to exceed available capacity, while Microsoft’s newly operational Fairwater data center in Wisconsin should help convert its large remaining performance obligation backlog into revenue.
The company ended the previous quarter with $627 billion in commercial remaining performance obligations, with management expecting about 25% of that amount to be recognized over the next 12 months.
Bank of America said Azure growth at or above guidance is likely necessary for the stock to perform well, while a miss could renew concerns about returns on Microsoft’s heavy AI investments.
AI Spending And Copilot Adoption In FocusThe brokerage expects Microsoft to report about $42 billion in fourth-quarter capital expenditures, including leases, up 74% year over year as the company continues expanding AI infrastructure. That spending is expected to pressure free cash flow in the near term.
Beyond infrastructure, analysts said investors will closely monitor adoption of Microsoft 365 Copilot and broader AI monetization.
Microsoft ended the previous quarter with 20 million paid Copilot seats after adding 5 million sequentially, while AI annual recurring revenue exceeded $37 billion, up 123% from a year earlier.
Bank of America views continued growth in those metrics as evidence that AI adoption is translating into incremental revenue.
Revenue Outlook And ValuationBank of America forecasts fourth-quarter revenue of $87.4 billion, up 14.4% from a year earlier, and earnings per share of $4.24, broadly in line with Wall Street expectations.
The firm also raised its fiscal 2027 and 2028 revenue and earnings estimates to reflect stronger Azure growth as additional AI capacity comes online.
The analysts said Microsoft’s valuation remains attractive, noting the stock trades at about 19 times their calendar 2027 earnings estimate, below its five-year average multiple of 29 times.
Price ActionMSFT Price Action: Microsoft shares were up 0.90% at $397.35 at the time of publication on Monday, according to Benzinga Pro data.
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Index Dow Jones +0,14 % na 52220,81 b., S&P 500 +0,59 % na 7501,84 b., Nasdaq Composite +0,92 % na 25753,86 b.
Wall Street na začátku obchodování roste tažena oživením v sektoru polovodičů. Index S&P 500 přidává o 0,59 %.
Akcie Alphabet posilují o 3,3 %. Společnost Google, spadající pod technologický konglomerát, údajně vyvíjí nový serverový čip, který má být navržen přímo na míru jeho modelu umělé inteligence Gemini. Informoval o tom server The Information s odvoláním na zdroje obeznámené se situací.
Řetězec rychlého občerstvení Domino's Pizza (+3,2 %) zveřejnil hospodářské výsledky za druhý kvartál roku 2026. Tržby mírně překonaly odhady analytiků, zisk na akcii však za očekáváním zaostal. Porovnatelné tržby v domácích obchodech stagnovaly.
Společnosti AMD (+3,6 %) a Microsoft (-0,8 %) rozšiřují svoje dlouhodobé partnerství. Microsoft se chystá na cloudové platformě Azure nasadit řešení Helios Rackscale od AMD, které bude pohánět inferenci u nejpokročilejších AI modelů. Microsoft tak začne ve velkém využívat systém AMD Helios pro potřeby vlastní AI inference, své AI zákazníky i služby Azure AI. Společnost AMD zahájí dodávky tohoto systému zákazníkům včetně Microsoftu ve druhé polovině roku 2026.
Analytik Timothy Arcuri ze společnosti UBS zvýšil cílovou cenu pro akcie společnosti Teradyne, která se specializuje na automatizační a testovací řešení pro elektroniku a průmysl, z 440 USD na 500 USD a zachoval nákupní doporučení. Nová cílová cena představuje potenciální nárůst o 46 % oproti páteční zavírací ceně.
Index S&P 500 +0,59 % na 7501,84 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Komunikační služby +1,5 % Nezbytná spotřeba -0,2 % Informační technologie +1,1 % Zdravotní péče -0,1 % Utility +0,5 % Finanční sektor -0,1 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Teradyne (TER) +7,9 % ServiceNow (NOW) -4,3 % Lumentum Holdings (LITE) +7,6 % Intuit (INTU) -3,7 % Coherent Corp (COHR) +6,6 % Chipotle Mexican Grill (CMG) -3,7 % Intel Corp (INTC) +5,8 % Adobe (ADBE) -3,6 % Sandisk Corp (SNDK) +5,6 % Honeywell Aerospace (HONA) -3,0 % Zdroj: Bloomberg
Artificial intelligence is reshaping the U.S. economy at a remarkable pace, but the labor market has yet to deliver a simple verdict. Headlines swing between mass layoffs and soaring productivity, leaving investors wondering whether AI is replacing workers or creating new opportunities.
The answer depends on where you look. Hiring has cooled in some white-collar professions even as demand for AI expertise has surged. Yet one trend is becoming increasingly difficult to ignore: AI isn’t just changing existing businesses — it is inspiring entrepreneurs to build entirely new ones.
AI’s Entrepreneurial Boom Is Hard to Ignore The debate over whether AI creates or destroys jobs is far from settled. Some economists point to slower hiring across office-based occupations and the growing ability of AI to automate routine work. Companies like Meta Platforms (NASDAQ:META | META Price Prediction), Microsoft (NASDAQ:MSFT), and Amazon (NASDAQ:AMZN) have announced mass layoffs affecting thousands of workers.
Yet, others argue that every technological revolution has ultimately created more opportunities than it eliminated, even if the transition was uneven.
There is one metric, though, that is producing a clear winner: business formation.
According to Bloomberg, citing data from Guillermo Gallacher and the U.S. Census Bureau, business creation in AI-related industries has accelerated since ChatGPT launched in November 2022. Professional, scientific, and technical services — sectors where AI tools are quickly becoming part of everyday operations — have seen new business formation climb 45%.
That compares with:
Sector Growth Since ChatGPT Launch Professional, scientific, and technical services +45% Total U.S. business formation +20% Construction +10% The comparison is revealing. Construction remains one of the largest employers in America, yet business formation there has expanded at less than one-quarter the pace of AI-focused professional services. That suggests AI is lowering the barriers to starting companies by allowing smaller teams to accomplish work that once required much larger organizations.
The latest Census Bureau projections support the idea that entrepreneurship is gaining momentum. The agency expects approximately 29,700 new businesses to form each month nationwide over the next year, representing 17% year-over-year growth.
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Professional services alone are projected to generate more than 5,000 new businesses each month, a record for the sector and 24% above last year’s pace.
Those aren’t isolated statistics. They suggest AI is becoming an economic catalyst that encourages more Americans to launch consulting firms, software companies, engineering practices, cybersecurity businesses, and specialized AI service providers.
Watch Where New Companies Are Forming For investors, the bigger opportunity may lie beyond the employment debate. History shows that waves of new business creation often produce lasting winners. More startups mean greater demand for cloud infrastructure, semiconductors, cybersecurity, productivity software, digital payments, and data-center capacity. Established companies supplying those services may benefit regardless of whether each startup ultimately succeeds.
Ironically, AI may prove capable of reducing headcount inside existing companies while expanding the total number of businesses competing in the economy. Those two trends can exist at the same time.
Key Takeaway In short, the argument over whether AI is creating or eliminating jobs is likely to continue because different data sets tell different stories. Employment figures may remain mixed as companies automate existing roles while hiring for new ones.
What appears much less debatable is AI’s impact on entrepreneurship. Bloomberg’s analysis of U.S. Census Bureau data shows business formation in AI-related professional services is surging since ChatGPT’s debut, far outpacing the broader economy.
Ultimately, investors should pay close attention to where new companies are being created. Every startup represents potential demand for the chips, software, cloud services, and digital infrastructure powering the AI economy, making that ecosystem one of the clearest long-term investment themes to emerge from the AI revolution.
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According to The Wall Street Journal, Elon Musk‘s SpaceX and the Pentagon are discussing a leasing agreement under which the company would rent computing capacity from its data centers, allowing military and intelligence agencies to run AI models on SpaceX’s infrastructure.
From Launching Rockets to Powering Pentagon AIThe Pentagon is already one of SpaceX’s largest customers. The company launches national security missions, provides military satellite communications through Starlink and supports missile-tracking initiatives. Leasing AI computing power would deepen that relationship, expanding SpaceX’s role from delivering physical infrastructure to providing the computing infrastructure that powers artificial intelligence.
For investors, that marks another step in the company’s evolution.
SpaceX has steadily diversified beyond launch services through Starlink, turning connectivity into a major business. AI computing could become another high-growth revenue stream as demand for compute continues to outpace supply.
A New Competitive LandscapeUnlike the launch industry, where SpaceX has established a commanding lead, AI infrastructure is one of the most competitive markets in technology.
Microsoft’s Azure, Amazon Web Services, Google Cloud and Oracle have spent years building cloud platforms for enterprise and government customers. A Pentagon AI compute deal would place SpaceX alongside those hyperscalers rather than traditional aerospace and defense contractors.
That shift reflects a broader trend across the AI industry. As computing power becomes one of the world’s most valuable resources, the lines between aerospace, cloud computing and artificial intelligence are beginning to blur.
The reported talks also suggest SpaceX’s AI ambitions extend beyond government work. The Wall Street Journal said the company already leases computing capacity to commercial AI customers, including Google, Anthropic and Reflection AI.
If a Pentagon agreement materializes, it could reinforce a broader transformation already underway. SpaceX wouldn’t simply be competing to launch the government’s satellites or connect its troops—it would also be competing to power the AI systems that increasingly shape military operations, putting it in direct competition with some of the world’s largest cloud providers.
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The market's perception that Microsoft (MSFT 1.67%) has fallen behind in artificial intelligence (AI) continues to weigh on the stock. The criticism isn't unwarranted.
Microsoft Copilot simply hasn't become a top AI app for enterprises. That's certainly disappointing, and the company's soaring AI spending hasn't helped matters.
Microsoft's slide has brought the stock down to 23.5 times trailing 12-month earnings, a level investors seldom get the chance to buy at. Cheap isn't always a buying opportunity. But in Microsoft's case, it's hard to ignore the stock here.
Growth supports the stock's valuation Just because Copilot hasn't kept up with ChatGPT or Claude doesn't undo the deeply entrenched relationships Microsoft enjoys across the enterprise world.
Microsoft still rakes in high-margin sales hand over fist on its various software products, including Windows, Microsoft 365, Dynamics, and more. Its cloud services arm, Azure, is also thriving. Cloud revenue grew 29% in the third quarter of its fiscal year 2026, and Azure's commercial RPOs (remaining performance obligations) surged 99% to $627 billion.
Image source: The Motley Fool.
In other words, Copilot's failure thus far isn't dragging the ship down. Analysts estimate that Microsoft will grow its earnings by an average of 17% annually over the next three to five years. That growth rate would make any stock a table-pounding buy at 23 times earnings, let alone the tech empire and world-class company that is Microsoft.
Just how bad is the hyperscaler cash flow problem? As a top AI hyperscaler, Microsoft is pouring billions of dollars into data centers and other AI infrastructure. Microsoft is a financial juggernaut that generates more cash from its operations almost every year, including a staggering $170 billion over the past 12 months. But even the deepest pockets have limits. Microsoft might soon find itself with little or no free cash flow, considering its plans to spend $190 billion this calendar year.
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It's not an existential crisis by any means, as Microsoft has a fortress-like balance sheet it can tap if it chooses to continue on this path. It does make Microsoft a capital-intensive company for the time being. That reality is a major reason why the stock has struggled. So, should all this AI spending dissuade investors from buying Microsoft stock?
Here's how I look at it. If AI is the real deal and Microsoft and other hyperscalers can successfully monetize all of this infrastructure, it will likely drive robust earnings growth for the foreseeable future. These companies are laying the groundwork for a world where AI is a core economic engine. If it's the opposite, say AI is some temporary blip, then Microsoft can still turn off the spigot, and all the cash flow its existing businesses generate will suddenly gush back to the financials as free cash flow.
Either way, I like Microsoft's chances of continuing to earn higher profits years into the future.
Microsoft (NASDAQ: MSFT | MSFT Price Prediction) and Amazon (NASDAQ: AMZN) both reported on April 29, 2026, revealing two different clocks running on AI cloud ROI. Microsoft is already cashing checks on Copilot and Azure. Amazon is pouring concrete, buying chips, and stringing power. The gap between them is the gap between a software business and an infrastructure project.
Copilot Is Paying Today. Trainium Is Paying Tomorrow. Microsoft’s Intelligent Cloud segment hit $34.68B, and Satya Nadella framed the payoff plainly: “Our AI business surpassed an annual revenue run rate of $37 billion, up 123% year-over-year.” Paid Copilot seats reached over 20 million, with Accenture alone taking 740,000. That is SaaS revenue landing the same quarter the GPUs light up.
Amazon’s picture is heavier. AWS grew 28% to $37.59B, its fastest pace in 15 quarters, and the Trainium chip business crossed a $20 billion run rate. But Q1 capex ran $44.2 billion against just $26.0 billion in operating cash flow, producing negative free cash flow of $18.2 billion. Andy Jassy did not flinch: “We have high confidence this will be monetized well, as we already have customer commitments for a substantial portion of it.”
Business Driver Microsoft Amazon AI Run Rate $37B $15B+ AI, $20B chips 2026 Capex Plan ~$190B ~$200B Backlog / RPO $627B $364B Operating Margin 45.6% 11.2% Software Velocity vs. Silicon Ownership Microsoft converts capex into revenue almost immediately because Copilot rides on existing seats. Gross margin sits at 68.8%, and the RPO backlog of $627B gives Amy Hood visibility other CFOs would trade a kidney for. Amazon’s payoff is structural. Jassy told investors “Trainium will save us tens of billions of dollars of CapEx each year and provide several hundred basis points of operating margin advantage” at scale. With over $225 billion in Trainium commitments from Anthropic, OpenAI, and others, AWS is pre-selling the capacity it is building.
Why 2027 Is the Crossover Jassy laid out the math: “The free cash flow and ROIC for these investments are cumulatively quite attractive a couple of years after being in service.” Chips and servers depreciate over five to six years, data centers over 30-plus. The 2025 to 2026 capex wave, $131.8B in FY25 alone, starts generating full revenue as those assets enter service in mid-to-late 2027. That is when Amazon’s owned silicon compounds against Microsoft’s ongoing NVIDIA and OpenAI cost obligations.
Why I Own the Wait on Amazon If I want stability and clean cash generation right now, Microsoft is the cleaner pick. Free cash flow yield of 2.4%, dividends intact, and Copilot economics already proven. Down 16.69% YTD, the market has punished the capex line without fully crediting the monetization.
But I lean Amazon for 2027. You are paying today’s price for tomorrow’s margin curve, and Jassy’s chip stack looks like the most underappreciated ROI lever in the group. I would change my view if Trainium3 slips or memory costs stay stuck. Absent that, the crossover looks real.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Microsoft didn't make the cut. Grab the names FREE today.
NEW YORK, July 20, 2026 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces that a class action lawsuit has been filed against Microsoft Corporation (NASDAQ:MSFT) and certain of the Company’s senior executives for securities fraud after its significant stock drop resulting from potential violations of the federal securities laws.
If you invested in Microsoft, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/microsoft-class-action-lawsuit.
Key Details of the Microsoft ($MSFT) Class Action:
Lead Plaintiff Deadline: August 11, 2026Alleged Misconduct: Securities fraud alleging that Microsoft misled investors regarding its Azure cloud computing platform and AI chatbot CopilotStock Drop: January 28, 2026 – 10% Stock DropCourt: U.S. District Court for the Western District of WashingtonAction: Contact BFA Law to discuss your rights
Investors have until August 11, 2026 to ask the Court to be appointed to lead the case. The complaint asserts securities fraud claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Microsoft common stock. The class action is pending in the U.S. District Court for the Western District of Washington. It is captioned City of St. Clair Shores Police and Fire Retirement System, et al., No. 26-cv-02071.
Why is Microsoft Being Sued for Securities Fraud?
Microsoft is a multinational technology company that develops software, cloud services, and devices. In recent years, Microsoft’s cloud computing platform named Azure has been Microsoft’s main growth driver. A key reason for Azure’s recent growth is Microsoft’s multi-billion-dollar investment into AI, including the development of its own generative AI chatbot named Copilot.
According to the complaint, during the relevant period, Microsoft consistently touted Copilot’s best-in-class capabilities, which purportedly drove widespread and growing user adoption. Copilot’s apparent success allowed Microsoft to report surging Azure-related revenue.
As alleged, in truth, Copilot suffered from severe functionality issues that caused user adoption to decline and put Microsoft’s Azure revenue at risk.
Why did Microsoft’s Stock Drop?
On January 28, 2026, Microsoft announced disappointing 2Q 2026 financial results and that Azure growth had slowed suddenly. Microsoft also allegedly revealed for the first time that the number of Microsoft 365 Copilot premium customers totaled only 15 million, materially below analyst estimates.
This news caused the price of Microsoft common stock to decline $48.13 per share, or 10%, from $481.63 per share on January 28, 2026, to $433.50 per share on January 29, 2026.
Additionally, on February 3, 2026, The Wall Street Journal reported in an article titled “Microsoft’s Pivotal AI Product Is Running Into Big Problems” that severe challenges and functionality issues had plagued Copilot, causing the application to lose market share. Specifically, The Wall Street Journal reported that “[c]onfusing brand positioning and interoperability problems have frustrated users.”
Click here for more information: https://www.bfalaw.com/cases/microsoft-class-action-lawsuit.
What Can You Do?
If you invested in Microsoft, you may have legal options and are encouraged to submit your information to the firm.
All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named “Elite Trial Lawyers” by the National Law Journal, “Litigation Stars” by Benchmark Litigation, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360 and “SuperLawyers” by Thomson Reuters.
Most recently, The Legal 500 awarded BFA the most client satisfaction accolades of any plaintiff’s securities litigation law firm, with clients noting: “[t]here is no better service provider in the practice area,” “[t]he interest of the client is always front and center,” and “[t]here isn’t a better firm in this space.” One testimonial described the firm as “nimble and entrepreneurial,” with a “relentless focus on adding value for clients.”
Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
For more information about BFA and its attorneys, please visit https://www.bfalaw.com.
WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of common stock of Microsoft Corporation (NASDAQ: MSFT) between May 1, 2025 and January 28, 2026, inclusive (the “Class Period”), of the important August 11, 2026 lead plaintiff deadline.
SO WHAT: If you purchased Microsoft common stock during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.
WHAT TO DO NEXT: To join the Microsoft class action, go to https://rosenlegal.com/cases/microsoft-corporation/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than August 11, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually handle securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered billions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs’ Bar. Many of the firm’s attorneys have been recognized by Lawdragon and Super Lawyers.
DETAILS OF THE CASE: According to the lawsuit, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) Microsoft’s Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems; (2) Microsoft’s flagship proprietary AI model ranked well below competitors on a number of benchmark tests; (3) Microsoft needed to increase by billions of dollars its capital expenditures and divert graphics processing unit (“GPU”) and central processing unit (“CPU”) capacity away from fulfilling demand for its profitable Azure services in order to improve the competitive positioning of its critical Copilot family of products and increase its AI-related research and development (“R&D”); and (4) as a result, Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and Microsoft’s Copilot offerings had lost market share to rival products, a trend that was increasing. When the true details entered the market, the lawsuit claims that investors suffered damages.
To join the Microsoft class action, go to https://rosenlegal.com/cases/microsoft-corporation/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
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I believe Microsoft is on the cusp of being re-rated back towards 52 week highs, as Azure and Copilot growth help shape the narrative back to "AI Winner." Current valuation is near multi-year lows, reminiscent of late 2022 before a significant rally, suggesting potential upside. MSFT's aggressive CapEx is seen as strategic long-term investment, not value destruction, paralleling Amazon's approach.
Free cash flow conversion is now the single most important determinant of share price. Burdening company valuation for the moment, I expect FCF conversion to help Microsoft's long term upwards trajectory when it comes back to more sustainable levels in the late 2020s. Impressive margins in Software and strong growth in Cloud dispel return on investment fears.
David Bailin argues that investors are overestimating earnings expectations and underestimating the long-term impact of AI. He explains why hyperscalers like Amazon (AMZN), Microsoft (MSFT), and Alphabet (GOOGL) remain attractively valued and why the AI buildout and adoption cycle still has plenty of room to run.
New York, New York--(Newsfile Corp. - July 19, 2026) - Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Microsoft Corporation (NASDAQ: MSFT) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Microsoft securities between May 1, 2025 and January 28, 2026, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/MSFT.
Microsoft Case Details
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements because they failed to disclose that:
Microsoft's Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems; Microsoft's flagship proprietary AI model ranked well below competitors on a number of benchmark tests; Microsoft needed to increase by billions of dollars its capital expenditures and divert graphics processing unit ("GPU") and central processing unit ("CPU") capacity away from fulfilling demand for its profitable Azure services in order to improve the competitive positioning of its critical Copilot family of products and increase its AI-related research and development ("R&D"); and as a result of the above, Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and Microsoft's Copilot offerings had lost market share to rival products, a trend that was increasing.What's Next for Microsoft Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/MSFT, or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Microsoft you have until August 11, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to Microsoft Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for Microsoft Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
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Appleton Partners Inc. MA increased its position in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 1.7% during the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 119,394 shares of the software giant’s stock after purchasing an additional 1,943 shares during the quarter. Microsoft makes up about 3.1% of Appleton Partners Inc. MA’s holdings, making the stock its 4th biggest position. Appleton Partners Inc. MA’s holdings in Microsoft were worth $44,196,000 at the end of the most recent reporting period.
A number of other institutional investors have also added to or reduced their stakes in MSFT. Longfellow Investment Management Co. LLC increased 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 purchasing an additional 20 shares during the last quarter. Bernzott Capital Advisors bought a new stake in shares of Microsoft in the 4th quarter worth approximately $34,000. Timmons Wealth Management LLC purchased a new position in Microsoft in the fourth quarter valued at approximately $36,000. Fairway Wealth LLC grew its holdings in Microsoft by 287.0% during the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock valued at $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 valued at $44,000. 71.13% of the stock is owned by institutional investors.
Wall Street Analysts Forecast Growth A number of research analysts have recently commented on MSFT shares. Dbs Bank dropped their price target on Microsoft from $678.00 to $573.00 in a research report on Thursday, May 7th. Oppenheimer reissued an “outperform” rating and issued a $515.00 price objective (down from $630.00) on shares of Microsoft in a report on Monday, April 27th. China Renaissance lowered their price objective on Microsoft from $630.00 to $550.00 and set a “buy” rating on the stock in a research note on Monday, May 4th. Tigress Financial upped their price objective on shares of Microsoft from $595.00 to $680.00 and gave the company a “buy” rating in a report on Wednesday, May 6th. Finally, Royal Bank Of Canada reiterated a “buy” rating on shares of Microsoft in a research report on Friday, May 22nd. Forty-one analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $557.96.
View Our Latest Analysis on Microsoft
Microsoft Price Performance NASDAQ:MSFT opened at $393.82 on Friday. Microsoft Corporation has a 52-week low of $349.20 and a 52-week high of $555.45. The stock has a fifty day moving average of $400.28 and a 200 day moving average of $411.30. The company has a debt-to-equity ratio of 0.08, a quick ratio of 1.27 and a current ratio of 1.28. The firm has a market capitalization of $2.93 trillion, a price-to-earnings ratio of 23.44, a P/E/G ratio of 1.20 and a beta of 1.13.
Microsoft (NASDAQ:MSFT – Get Free Report) last announced its earnings results on Wednesday, April 29th. The software giant reported $4.27 earnings per share for the quarter, topping analysts’ consensus estimates of $4.06 by $0.21. Microsoft had a return on equity of 31.94% and a net margin of 39.34%.The business had revenue of $82.89 billion for the quarter, compared to analyst estimates of $81.44 billion. During the same period in the prior year, the company earned $3.46 EPS. The company’s quarterly revenue was up 18.3% compared to the same quarter last year. On average, research analysts expect that Microsoft Corporation will post 16.71 EPS for the current fiscal year.
Microsoft Dividend Announcement The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be issued 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 0.9%. Microsoft’s dividend payout ratio is presently 21.67%.
Insider Activity In other news, EVP Amy Coleman sold 1,262 shares of the firm’s stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $411.34, for a total transaction of $519,111.08. Following the sale, the executive vice president owned 46,003 shares in the company, valued at approximately $18,922,874.02. This trade represents a 2.67% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Judson Althoff sold 15,500 shares of the company’s 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 transaction, 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 23,762 shares of company stock worth $10,508,361. 0.03% of the stock is currently owned by corporate insiders.
Key Headlines Impacting Microsoft Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Microsoft is still getting support from Wall Street, with some analysts and portfolio managers reiterating buy ratings and arguing that Azure demand, Copilot adoption, and Microsoft 365 tailwinds can support long-term earnings power. Article: Josh Baer Reiterates Buy on Microsoft, Citing AI Leadership, Azure/M365 Budget Tailwinds and Underappreciated Earnings Power Positive Sentiment: A CIO survey and other commentary pointed to strong Azure demand at multi-year highs, reinforcing the view that Microsoft’s cloud and AI platform remains a core beneficiary of enterprise spending. Article: Microsoft (MSFT) Stock Surges on Strong Azure Demand in Latest CIO Survey Positive Sentiment: Microsoft also announced a multi-year AI infrastructure partnership with 3M, which investors viewed as another sign that its Azure ecosystem is expanding into real-world enterprise use cases. Article: Microsoft Stock Rebounds on 3M Optical Infrastructure Alliance Neutral Sentiment: Microsoft CEO Satya Nadella criticized Anthropic’s Fable restrictions and pushed for Microsoft to promote its own AI models more aggressively, highlighting the company’s effort to reduce reliance on outside AI vendors. Article: Microsoft’s Nadella rips Anthropic’s Fable restrictions in staff meeting: ‘Doesn’t make sense’ Neutral Sentiment: Reports that Microsoft is training its sales force to push in-house AI models over OpenAI, Google, and Anthropic suggest a strategic shift toward better control over costs and monetization, but the market is still waiting for proof that this approach boosts returns. Article: Microsoft is reportedly training salespeople to talk down OpenAI and Anthropic Negative Sentiment: Several reports said analysts trimmed price targets ahead of earnings, and commentary stressed that investors are increasingly worried Microsoft’s AI spending spree could pressure margins before the payoff becomes visible. Article: Why Microsoft Is Playing a Different AI Game Than Big Tech—and Cash Flow Is the Test Negative Sentiment: Microsoft is facing added overhang from securities class-action deadlines and allegations tied to Copilot and Azure disclosures, which can keep pressure on sentiment even though these developments are not operational. Article: MSFT UPCOMING DEADLINE : The Gross Law Firm Alerts Microsoft Corporation Stockholders of Securities Class Action 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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Beacon Bank & Trust reduced its stake in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 3.9% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 36,605 shares of the software giant’s stock after selling 1,492 shares during the quarter. Microsoft comprises about 2.8% of Beacon Bank & Trust’s investment portfolio, making the stock its 10th largest holding. Beacon Bank & Trust’s holdings in Microsoft were worth $13,550,000 as of its most recent filing with the Securities & Exchange Commission.
Other institutional investors have also recently added to or reduced their stakes in the company. Norges Bank purchased a new stake in shares of Microsoft during the fourth quarter valued at $50,664,631,000. Auto Owners Insurance Co grew its stake in Microsoft by 56,160.8% during the 4th quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant’s stock valued at $29,073,486,000 after acquiring an additional 60,009,531 shares in the last quarter. Nuveen LLC purchased a new position in Microsoft during the 1st quarter valued at about $18,733,827,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in shares of Microsoft by 500.0% in 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 purchasing an additional 49,618,571 shares during the period. Finally, Laurel Wealth Advisors LLC lifted 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 worth $14,905,904,000 after purchasing an additional 29,906,791 shares in the last quarter. 71.13% of the stock is currently owned by institutional investors and hedge funds.
Microsoft Trading Down 1.8% MSFT stock opened at $393.82 on Friday. The company has a current ratio of 1.28, a quick ratio of 1.27 and a debt-to-equity ratio of 0.08. The business’s 50 day moving average is $400.28 and its 200-day moving average is $411.30. Microsoft Corporation has a 1-year low of $349.20 and a 1-year high of $555.45. The firm has a market cap of $2.93 trillion, a P/E ratio of 23.44, a P/E/G ratio of 1.20 and a beta of 1.13.
Microsoft (NASDAQ:MSFT – Get Free Report) last announced its earnings results on Wednesday, April 29th. The software giant reported $4.27 earnings per share for the quarter, beating analysts’ consensus estimates of $4.06 by $0.21. The company had revenue of $82.89 billion during the quarter, compared to analyst estimates of $81.44 billion. Microsoft had a return on equity of 31.94% and a net margin of 39.34%.The firm’s quarterly revenue was up 18.3% compared to the same quarter last year. During the same period last year, the company posted $3.46 earnings per share. Equities analysts anticipate that Microsoft Corporation will post 16.71 earnings per share for the current fiscal year.
Microsoft Dividend Announcement 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 paid a $0.91 dividend. The ex-dividend date is Thursday, August 20th. This represents a $3.64 annualized dividend and a yield of 0.9%. Microsoft’s payout ratio is presently 21.67%.
Wall Street Analyst Weigh In Several analysts recently commented on the stock. New Street Research decreased their price target on shares of Microsoft from $675.00 to $600.00 and set a “buy” rating for the company in a report on Thursday, April 30th. Phillip Securities upgraded shares of Microsoft to a “buy” rating and set a $485.00 price objective on the stock in a research note on Wednesday, May 13th. Stifel Nicolaus cut their target price on shares of Microsoft from $415.00 to $400.00 and set a “hold” rating for the company in a research report on Thursday, June 25th. Barclays reissued an “overweight” rating on shares of Microsoft in a research note on Wednesday, June 3rd. Finally, Tigress Financial boosted their price target on Microsoft from $595.00 to $680.00 and gave the company a “buy” rating in a research note on Wednesday, May 6th. Forty-one research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $557.96.
View Our Latest Analysis on MSFT
Insider Transactions at Microsoft In other Microsoft news, 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 value of $7,145,345.00. Following the sale, the chief executive officer owned 110,477 shares in the company, valued at $50,928,792.23. This represents a 12.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Amy Coleman sold 1,262 shares of the business’s stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $411.34, for a total value of $519,111.08. Following the transaction, the executive vice president directly owned 46,003 shares in the company, valued at $18,922,874.02. The trade was a 2.67% 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 23,762 shares of company stock valued at $10,508,361 over the last 90 days. 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: Microsoft is still getting support from Wall Street, with some analysts and portfolio managers reiterating buy ratings and arguing that Azure demand, Copilot adoption, and Microsoft 365 tailwinds can support long-term earnings power. Article: Josh Baer Reiterates Buy on Microsoft, Citing AI Leadership, Azure/M365 Budget Tailwinds and Underappreciated Earnings Power Positive Sentiment: A CIO survey and other commentary pointed to strong Azure demand at multi-year highs, reinforcing the view that Microsoft’s cloud and AI platform remains a core beneficiary of enterprise spending. Article: Microsoft (MSFT) Stock Surges on Strong Azure Demand in Latest CIO Survey Positive Sentiment: Microsoft also announced a multi-year AI infrastructure partnership with 3M, which investors viewed as another sign that its Azure ecosystem is expanding into real-world enterprise use cases. Article: Microsoft Stock Rebounds on 3M Optical Infrastructure Alliance Neutral Sentiment: Microsoft CEO Satya Nadella criticized Anthropic’s Fable restrictions and pushed for Microsoft to promote its own AI models more aggressively, highlighting the company’s effort to reduce reliance on outside AI vendors. Article: Microsoft’s Nadella rips Anthropic’s Fable restrictions in staff meeting: ‘Doesn’t make sense’ Neutral Sentiment: Reports that Microsoft is training its sales force to push in-house AI models over OpenAI, Google, and Anthropic suggest a strategic shift toward better control over costs and monetization, but the market is still waiting for proof that this approach boosts returns. Article: Microsoft is reportedly training salespeople to talk down OpenAI and Anthropic Negative Sentiment: Several reports said analysts trimmed price targets ahead of earnings, and commentary stressed that investors are increasingly worried Microsoft’s AI spending spree could pressure margins before the payoff becomes visible. Article: Why Microsoft Is Playing a Different AI Game Than Big Tech—and Cash Flow Is the Test Negative Sentiment: Microsoft is facing added overhang from securities class-action deadlines and allegations tied to Copilot and Azure disclosures, which can keep pressure on sentiment even though these developments are not operational. Article: MSFT UPCOMING DEADLINE : The Gross Law Firm Alerts Microsoft Corporation Stockholders of Securities Class Action 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 Netflix May Be Cheap Enough to Tempt Buyers After Earnings Drop Delta vs. United: Which Airline Is Better Built for Higher Fuel Costs? The Market Sold Alcoa After Earnings—But It May Be Missing the Real Story Why Intuitive Surgical’s Strong Quarter Still Spooked Investors 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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Bogart Wealth LLC boosted its stake in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 17.2% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 73,118 shares of the software giant’s stock after buying an additional 10,750 shares during the period. Microsoft comprises 1.0% of Bogart Wealth LLC’s investment portfolio, making the stock its 20th largest holding. Bogart Wealth LLC’s holdings in Microsoft were worth $27,066,000 as of its most recent filing with the Securities and Exchange Commission.
Other hedge funds and other institutional investors have also modified their holdings of the company. Longfellow Investment Management Co. LLC boosted its holdings in shares of 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 period. Bernzott Capital Advisors acquired a new stake in shares of Microsoft in the fourth quarter worth about $34,000. Timmons Wealth Management LLC acquired a new stake in Microsoft in the 4th quarter worth approximately $36,000. Fairway Wealth LLC boosted its holdings 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 buying an additional 66 shares during the period. Finally, LSV Asset Management acquired a new stake in shares of Microsoft in the fourth quarter valued at about $44,000. Institutional investors and hedge funds own 71.13% of the company’s stock.
Analyst Ratings Changes Several brokerages have recently issued reports on MSFT. Phillip Securities upgraded shares of Microsoft to a “buy” rating and set a $485.00 price objective on the stock in a research note on Wednesday, May 13th. Argus cut their target price on Microsoft from $620.00 to $510.00 and set a “buy” rating for the company in a research report on Friday, July 10th. Evercore reaffirmed an “outperform” rating and set a $525.00 price objective on shares of Microsoft in a research note on Wednesday. Wolfe Research cut their price target on Microsoft from $570.00 to $525.00 and set an “outperform” rating for the company in a report on Monday, July 6th. Finally, Deutsche Bank Aktiengesellschaft reduced their price objective on Microsoft from $575.00 to $550.00 and set a “buy” rating on the stock in a report on Thursday, April 30th. Forty-one analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat, Microsoft currently has an average rating of “Moderate Buy” and a consensus target price of $557.96.
Get Our Latest Research Report on Microsoft
Microsoft News Summary Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Microsoft is still getting support from Wall Street, with some analysts and portfolio managers reiterating buy ratings and arguing that Azure demand, Copilot adoption, and Microsoft 365 tailwinds can support long-term earnings power. Article: Josh Baer Reiterates Buy on Microsoft, Citing AI Leadership, Azure/M365 Budget Tailwinds and Underappreciated Earnings Power Positive Sentiment: A CIO survey and other commentary pointed to strong Azure demand at multi-year highs, reinforcing the view that Microsoft’s cloud and AI platform remains a core beneficiary of enterprise spending. Article: Microsoft (MSFT) Stock Surges on Strong Azure Demand in Latest CIO Survey Positive Sentiment: Microsoft also announced a multi-year AI infrastructure partnership with 3M, which investors viewed as another sign that its Azure ecosystem is expanding into real-world enterprise use cases. Article: Microsoft Stock Rebounds on 3M Optical Infrastructure Alliance Neutral Sentiment: Microsoft CEO Satya Nadella criticized Anthropic’s Fable restrictions and pushed for Microsoft to promote its own AI models more aggressively, highlighting the company’s effort to reduce reliance on outside AI vendors. Article: Microsoft’s Nadella rips Anthropic’s Fable restrictions in staff meeting: ‘Doesn’t make sense’ Neutral Sentiment: Reports that Microsoft is training its sales force to push in-house AI models over OpenAI, Google, and Anthropic suggest a strategic shift toward better control over costs and monetization, but the market is still waiting for proof that this approach boosts returns. Article: Microsoft is reportedly training salespeople to talk down OpenAI and Anthropic Negative Sentiment: Several reports said analysts trimmed price targets ahead of earnings, and commentary stressed that investors are increasingly worried Microsoft’s AI spending spree could pressure margins before the payoff becomes visible. Article: Why Microsoft Is Playing a Different AI Game Than Big Tech—and Cash Flow Is the Test Negative Sentiment: Microsoft is facing added overhang from securities class-action deadlines and allegations tied to Copilot and Azure disclosures, which can keep pressure on sentiment even though these developments are not operational. Article: MSFT UPCOMING DEADLINE : The Gross Law Firm Alerts Microsoft Corporation Stockholders of Securities Class Action Insider Transactions at Microsoft In other news, CEO Judson Althoff sold 15,500 shares of the 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 approximately $50,928,792.23. This represents a 12.30% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP Amy Coleman sold 1,262 shares of the stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $411.34, for a total transaction of $519,111.08. Following the completion of the sale, the executive vice president owned 46,003 shares of the company’s stock, valued at approximately $18,922,874.02. This represents a 2.67% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 23,762 shares of company stock valued at $10,508,361 over the last 90 days. 0.03% of the stock is owned by corporate insiders.
Microsoft Stock Performance MSFT stock opened at $393.82 on Friday. The company has a current ratio of 1.28, a quick ratio of 1.27 and a debt-to-equity ratio of 0.08. The business’s 50-day moving average price is $400.28 and its two-hundred day moving average price is $411.30. Microsoft Corporation has a 1-year low of $349.20 and a 1-year high of $555.45. The firm has a market cap of $2.93 trillion, a PE ratio of 23.44, a P/E/G ratio of 1.20 and a beta of 1.13.
Microsoft (NASDAQ:MSFT – Get Free Report) last posted its earnings results on Wednesday, April 29th. The software giant reported $4.27 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.06 by $0.21. Microsoft had a return on equity of 31.94% and a net margin of 39.34%.The business had revenue of $82.89 billion during the quarter, compared to analysts’ expectations of $81.44 billion. During the same period in the prior year, the business earned $3.46 EPS. Microsoft’s revenue for the quarter was up 18.3% compared to the same quarter last year. As a group, research analysts forecast that Microsoft Corporation will post 16.71 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. Investors 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 0.9%. The ex-dividend date of this dividend is Thursday, August 20th. Microsoft’s dividend payout ratio (DPR) is currently 21.67%.
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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Dividend Assets Capital LLC grew its holdings in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 3.1% in the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 69,792 shares of the software giant’s stock after purchasing an additional 2,072 shares during the quarter. Microsoft makes up approximately 5.2% of Dividend Assets Capital LLC’s holdings, making the stock its biggest position. Dividend Assets Capital LLC’s holdings in Microsoft were worth $25,835,000 at the end of the most recent quarter.
A number of other institutional investors and hedge funds also recently made changes to their positions in the business. Taylor Securities Services Inc. bought a new position in Microsoft in the 4th quarter worth approximately $2,616,000. PMG Family Office LLC bought a new stake in shares of Microsoft during the third quarter valued at approximately $828,000. Werba Rubin Papier Wealth Management lifted its holdings in shares of Microsoft by 15.7% in the fourth quarter. Werba Rubin Papier Wealth Management now owns 12,492 shares of the software giant’s stock worth $6,041,000 after buying an additional 1,698 shares in the last quarter. SG Americas Securities LLC lifted its holdings in shares of Microsoft by 2,332.1% in the fourth quarter. SG Americas Securities LLC now owns 6,746,017 shares of the software giant’s stock worth $3,262,509,000 after buying an additional 6,468,645 shares in the last quarter. Finally, World Investment Advisors boosted its position in shares of Microsoft by 22.1% during the fourth quarter. World Investment Advisors now owns 272,424 shares of the software giant’s stock worth $131,750,000 after acquiring an additional 49,371 shares during the last quarter. Hedge funds and other institutional investors own 71.13% of the company’s stock.
Insiders Place Their Bets In other Microsoft news, EVP Takeshi Numoto sold 4,500 shares of the company’s stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $402.84, for a total value of $1,812,780.00. Following the transaction, the executive vice president directly owned 47,468 shares in the company, valued at $19,122,009.12. This represents a 8.66% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Amy Coleman sold 1,262 shares of the firm’s stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $411.34, for a total transaction of $519,111.08. Following the transaction, the executive vice president directly owned 46,003 shares in the company, valued at approximately $18,922,874.02. This trade represents a 2.67% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 23,762 shares of company stock worth $10,508,361 in the last three months. Corporate insiders own 0.03% of the company’s stock.
Microsoft Stock Performance Shares of Microsoft stock opened at $393.82 on Friday. The company has a quick ratio of 1.27, a current ratio of 1.28 and a debt-to-equity ratio of 0.08. The stock’s fifty day moving average is $400.28 and its two-hundred day moving average is $411.30. Microsoft Corporation has a 52 week low of $349.20 and a 52 week high of $555.45. The company has a market capitalization of $2.93 trillion, a PE ratio of 23.44, a price-to-earnings-growth ratio of 1.20 and a beta of 1.13.
Microsoft (NASDAQ:MSFT – Get Free Report) last released its earnings results on Wednesday, April 29th. The software giant reported $4.27 earnings per share for the quarter, topping the consensus estimate of $4.06 by $0.21. The business had revenue of $82.89 billion during the quarter, compared to the consensus estimate of $81.44 billion. Microsoft had a return on equity of 31.94% and a net margin of 39.34%.The business’s revenue for the quarter was up 18.3% compared to the same quarter last year. During the same period last year, the company earned $3.46 earnings per share. As a group, analysts expect that Microsoft Corporation will post 16.71 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 given a $0.91 dividend. This represents a $3.64 annualized dividend and a yield of 0.9%. The ex-dividend date of this dividend is Thursday, August 20th. Microsoft’s payout ratio is 21.67%.
More Microsoft News Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Microsoft is still getting support from Wall Street, with some analysts and portfolio managers reiterating buy ratings and arguing that Azure demand, Copilot adoption, and Microsoft 365 tailwinds can support long-term earnings power. Article: Josh Baer Reiterates Buy on Microsoft, Citing AI Leadership, Azure/M365 Budget Tailwinds and Underappreciated Earnings Power Positive Sentiment: A CIO survey and other commentary pointed to strong Azure demand at multi-year highs, reinforcing the view that Microsoft’s cloud and AI platform remains a core beneficiary of enterprise spending. Article: Microsoft (MSFT) Stock Surges on Strong Azure Demand in Latest CIO Survey Positive Sentiment: Microsoft also announced a multi-year AI infrastructure partnership with 3M, which investors viewed as another sign that its Azure ecosystem is expanding into real-world enterprise use cases. Article: Microsoft Stock Rebounds on 3M Optical Infrastructure Alliance Neutral Sentiment: Microsoft CEO Satya Nadella criticized Anthropic’s Fable restrictions and pushed for Microsoft to promote its own AI models more aggressively, highlighting the company’s effort to reduce reliance on outside AI vendors. Article: Microsoft’s Nadella rips Anthropic’s Fable restrictions in staff meeting: ‘Doesn’t make sense’ Neutral Sentiment: Reports that Microsoft is training its sales force to push in-house AI models over OpenAI, Google, and Anthropic suggest a strategic shift toward better control over costs and monetization, but the market is still waiting for proof that this approach boosts returns. Article: Microsoft is reportedly training salespeople to talk down OpenAI and Anthropic Negative Sentiment: Several reports said analysts trimmed price targets ahead of earnings, and commentary stressed that investors are increasingly worried Microsoft’s AI spending spree could pressure margins before the payoff becomes visible. Article: Why Microsoft Is Playing a Different AI Game Than Big Tech—and Cash Flow Is the Test Negative Sentiment: Microsoft is facing added overhang from securities class-action deadlines and allegations tied to Copilot and Azure disclosures, which can keep pressure on sentiment even though these developments are not operational. Article: MSFT UPCOMING DEADLINE : The Gross Law Firm Alerts Microsoft Corporation Stockholders of Securities Class Action Analyst Ratings Changes Several brokerages have recently issued reports on MSFT. BMO Capital Markets lifted their target price on Microsoft from $500.00 to $515.00 and gave the stock an “outperform” rating in a report on Tuesday, July 7th. Royal Bank Of Canada reissued a “buy” rating on shares of Microsoft in a research report on Friday, May 22nd. Benchmark restated a “buy” rating and issued a $525.00 price target (up from $450.00) on shares of Microsoft in a research report on Tuesday, April 28th. Wells Fargo & Company dropped their price objective on shares of Microsoft from $650.00 to $625.00 and set an “overweight” rating for the company in a research note on Wednesday. Finally, BNP Paribas Exane cut their price objective on shares of Microsoft from $556.00 to $555.00 and set an “outperform” rating on the stock in a research report on Friday, May 1st. Forty-one analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Microsoft has a consensus rating of “Moderate Buy” and a consensus price target of $557.96.
Check Out Our Latest Stock Analysis on Microsoft
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 Netflix May Be Cheap Enough to Tempt Buyers After Earnings Drop Delta vs. United: Which Airline Is Better Built for Higher Fuel Costs? The Market Sold Alcoa After Earnings—But It May Be Missing the Real Story Why Intuitive Surgical’s Strong Quarter Still Spooked Investors
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Busey Bank lifted its position in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 2.0% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 497,280 shares of the software giant’s stock after acquiring an additional 9,644 shares during the quarter. Microsoft accounts for approximately 5.0% of Busey Bank’s holdings, making the stock its 2nd largest position. Busey Bank’s holdings in Microsoft were worth $184,078,000 at the end of the most recent quarter.
A number of other hedge funds and other institutional investors also recently bought and sold shares of MSFT. Longfellow Investment Management Co. LLC boosted its holdings in shares of Microsoft by 51.3% in the second 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 position in Microsoft in the 4th quarter worth about $34,000. Timmons Wealth Management LLC bought a new position in Microsoft during the fourth quarter valued at approximately $36,000. Fairway Wealth LLC lifted 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 during the last quarter. Finally, LSV Asset Management bought a new stake in shares of Microsoft during the 4th quarter worth about $44,000. 71.13% of the stock is currently owned by institutional investors and hedge funds.
Key Microsoft News Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Microsoft is still getting support from Wall Street, with some analysts and portfolio managers reiterating buy ratings and arguing that Azure demand, Copilot adoption, and Microsoft 365 tailwinds can support long-term earnings power. Article: Josh Baer Reiterates Buy on Microsoft, Citing AI Leadership, Azure/M365 Budget Tailwinds and Underappreciated Earnings Power Positive Sentiment: A CIO survey and other commentary pointed to strong Azure demand at multi-year highs, reinforcing the view that Microsoft’s cloud and AI platform remains a core beneficiary of enterprise spending. Article: Microsoft (MSFT) Stock Surges on Strong Azure Demand in Latest CIO Survey Positive Sentiment: Microsoft also announced a multi-year AI infrastructure partnership with 3M, which investors viewed as another sign that its Azure ecosystem is expanding into real-world enterprise use cases. Article: Microsoft Stock Rebounds on 3M Optical Infrastructure Alliance Neutral Sentiment: Microsoft CEO Satya Nadella criticized Anthropic’s Fable restrictions and pushed for Microsoft to promote its own AI models more aggressively, highlighting the company’s effort to reduce reliance on outside AI vendors. Article: Microsoft’s Nadella rips Anthropic’s Fable restrictions in staff meeting: ‘Doesn’t make sense’ Neutral Sentiment: Reports that Microsoft is training its sales force to push in-house AI models over OpenAI, Google, and Anthropic suggest a strategic shift toward better control over costs and monetization, but the market is still waiting for proof that this approach boosts returns. Article: Microsoft is reportedly training salespeople to talk down OpenAI and Anthropic Negative Sentiment: Several reports said analysts trimmed price targets ahead of earnings, and commentary stressed that investors are increasingly worried Microsoft’s AI spending spree could pressure margins before the payoff becomes visible. Article: Why Microsoft Is Playing a Different AI Game Than Big Tech—and Cash Flow Is the Test Negative Sentiment: Microsoft is facing added overhang from securities class-action deadlines and allegations tied to Copilot and Azure disclosures, which can keep pressure on sentiment even though these developments are not operational. Article: MSFT UPCOMING DEADLINE : The Gross Law Firm Alerts Microsoft Corporation Stockholders of Securities Class Action Wall Street Analyst Weigh In MSFT has been the subject of a number of research reports. UBS Group reissued a “buy” rating on shares of Microsoft in a report on Friday, April 24th. Argus dropped their target price on shares of Microsoft from $620.00 to $510.00 and set a “buy” rating for the company in a research report on Friday, July 10th. Wedbush reiterated an “outperform” rating and issued a $575.00 price objective on shares of Microsoft in a research report on Wednesday, May 13th. Sanford C. Bernstein lowered Microsoft from an “outperform” rating to a “hold” rating in a research note on Monday, July 6th. Finally, Rothschild & Co Redburn decreased their target price on Microsoft from $450.00 to $400.00 and set a “neutral” rating on the stock in a report on Thursday, April 23rd. Forty-one equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $557.96.
Get Our Latest Stock Report on MSFT
Insiders Place Their Bets In other Microsoft news, CEO Judson Althoff sold 15,500 shares of the firm’s stock in a transaction on Monday, June 1st. The shares were 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 directly owned 110,477 shares in the company, valued at approximately $50,928,792.23. This trade represents a 12.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Amy Coleman sold 1,262 shares of the company’s stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $411.34, for a total transaction of $519,111.08. Following the transaction, the executive vice president owned 46,003 shares in the company, valued at approximately $18,922,874.02. The trade was a 2.67% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 23,762 shares of company stock worth $10,508,361. Company insiders own 0.03% of the company’s stock.
Microsoft Stock Down 1.8% Microsoft stock opened at $393.82 on Friday. Microsoft Corporation has a fifty-two week low of $349.20 and a fifty-two week high of $555.45. The company’s 50-day moving average is $400.28 and its 200-day moving average is $411.30. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.28 and a quick ratio of 1.27. The firm has a market capitalization of $2.93 trillion, a PE ratio of 23.44, a P/E/G ratio of 1.20 and a beta of 1.13.
Microsoft (NASDAQ:MSFT – Get Free Report) last announced its earnings results on Wednesday, April 29th. The software giant reported $4.27 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.06 by $0.21. The company had revenue of $82.89 billion during the quarter, compared to analysts’ expectations of $81.44 billion. Microsoft had a net margin of 39.34% and a return on equity of 31.94%. Microsoft’s quarterly revenue was up 18.3% on a year-over-year basis. During the same quarter in the previous year, the business posted $3.46 earnings per share. Sell-side analysts anticipate that Microsoft Corporation will post 16.71 earnings per share for the current year.
Microsoft Dividend Announcement The business 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 $0.91 dividend. The ex-dividend date is Thursday, August 20th. This represents a $3.64 annualized dividend and a yield of 0.9%. Microsoft’s dividend payout ratio is presently 21.67%.
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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Collaborative Fund Advisors LLC bought a new stake in Microsoft Corporation (NASDAQ:MSFT – Free Report) during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund bought 4,353 shares of the software giant’s stock, valued at approximately $1,611,000.
Other institutional investors and hedge funds have also recently modified their holdings of the company. Longfellow Investment Management Co. LLC raised 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 valued at $29,000 after buying an additional 20 shares in the last quarter. Bernzott Capital Advisors bought a new position in shares of Microsoft in the 4th quarter worth approximately $34,000. Timmons Wealth Management LLC bought a new stake in Microsoft during the fourth quarter worth about $36,000. Fairway Wealth LLC boosted its holdings in Microsoft by 287.0% in the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock worth $43,000 after acquiring an additional 66 shares in the last quarter. Finally, University of Illinois Foundation bought a new stake in shares of Microsoft during the second quarter valued at approximately $50,000. 71.13% of the stock is owned by hedge funds and other institutional investors.
Microsoft Stock Down 1.8% NASDAQ MSFT opened at $393.82 on Friday. The company has a debt-to-equity ratio of 0.08, a quick ratio of 1.27 and a current ratio of 1.28. The business has a fifty day moving average price of $400.28 and a 200 day moving average price of $411.30. Microsoft Corporation has a one year low of $349.20 and a one year high of $555.45. The company has a market cap of $2.93 trillion, a P/E ratio of 23.44, a P/E/G ratio of 1.20 and a beta of 1.13.
Microsoft (NASDAQ:MSFT – Get Free Report) last posted its quarterly earnings results on Wednesday, April 29th. The software giant reported $4.27 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.06 by $0.21. The business had revenue of $82.89 billion during the quarter, compared to analyst estimates of $81.44 billion. Microsoft had a return on equity of 31.94% and a net margin of 39.34%.The business’s revenue was up 18.3% compared to the same quarter last year. During the same period in the prior year, the business earned $3.46 earnings per share. Research analysts anticipate that Microsoft Corporation will post 16.71 EPS for the current fiscal 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 paid a dividend of $0.91 per share. This represents a $3.64 annualized dividend and a yield of 0.9%. The ex-dividend date of this dividend is Thursday, August 20th. Microsoft’s dividend payout ratio is presently 21.67%.
Analyst Upgrades and Downgrades MSFT has been the topic of several research analyst reports. President Capital increased their price target on Microsoft from $500.00 to $520.00 and gave the company a “buy” rating in a report on Thursday, April 30th. Piper Sandler reaffirmed an “overweight” rating on shares of Microsoft in a research note on Tuesday, May 26th. Dbs Bank decreased their price objective on shares of Microsoft from $678.00 to $573.00 in a research note on Thursday, May 7th. BNP Paribas Exane decreased their price target on shares of Microsoft from $556.00 to $555.00 and set an “outperform” rating for the company in a research note on Friday, May 1st. Finally, Stifel Nicolaus dropped their target price on Microsoft from $415.00 to $400.00 and set a “hold” rating on the stock in a research report on Thursday, June 25th. Forty-one investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $557.96.
Get Our Latest Stock Analysis on Microsoft
Insider Buying and Selling at Microsoft In related news, CEO Judson Althoff sold 15,500 shares of the company’s 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 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 filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Amy Coleman sold 1,262 shares of the firm’s stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $411.34, for a total value of $519,111.08. Following the completion of the sale, the executive vice president owned 46,003 shares in the company, valued at approximately $18,922,874.02. This represents a 2.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 23,762 shares of company stock valued at $10,508,361 in the last quarter. Corporate insiders own 0.03% of the company’s stock.
Trending Headlines about Microsoft Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Microsoft is still getting support from Wall Street, with some analysts and portfolio managers reiterating buy ratings and arguing that Azure demand, Copilot adoption, and Microsoft 365 tailwinds can support long-term earnings power. Article: Josh Baer Reiterates Buy on Microsoft, Citing AI Leadership, Azure/M365 Budget Tailwinds and Underappreciated Earnings Power Positive Sentiment: A CIO survey and other commentary pointed to strong Azure demand at multi-year highs, reinforcing the view that Microsoft’s cloud and AI platform remains a core beneficiary of enterprise spending. Article: Microsoft (MSFT) Stock Surges on Strong Azure Demand in Latest CIO Survey Positive Sentiment: Microsoft also announced a multi-year AI infrastructure partnership with 3M, which investors viewed as another sign that its Azure ecosystem is expanding into real-world enterprise use cases. Article: Microsoft Stock Rebounds on 3M Optical Infrastructure Alliance Neutral Sentiment: Microsoft CEO Satya Nadella criticized Anthropic’s Fable restrictions and pushed for Microsoft to promote its own AI models more aggressively, highlighting the company’s effort to reduce reliance on outside AI vendors. Article: Microsoft’s Nadella rips Anthropic’s Fable restrictions in staff meeting: ‘Doesn’t make sense’ Neutral Sentiment: Reports that Microsoft is training its sales force to push in-house AI models over OpenAI, Google, and Anthropic suggest a strategic shift toward better control over costs and monetization, but the market is still waiting for proof that this approach boosts returns. Article: Microsoft is reportedly training salespeople to talk down OpenAI and Anthropic Negative Sentiment: Several reports said analysts trimmed price targets ahead of earnings, and commentary stressed that investors are increasingly worried Microsoft’s AI spending spree could pressure margins before the payoff becomes visible. Article: Why Microsoft Is Playing a Different AI Game Than Big Tech—and Cash Flow Is the Test Negative Sentiment: Microsoft is facing added overhang from securities class-action deadlines and allegations tied to Copilot and Azure disclosures, which can keep pressure on sentiment even though these developments are not operational. Article: MSFT UPCOMING DEADLINE : The Gross Law Firm Alerts Microsoft Corporation Stockholders of Securities Class Action 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).
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Microsoft (MSFT 1.67%) stock has fallen 27% from its all-time high, as Wall Street focuses on heavy capital spending to support artificial intelligence (AI) infrastructure. Yet Microsoft's deep enterprise relationships continue to drive solid demand across its productivity software, cloud, and Copilot platforms.
Microsoft's earnings per share nearly doubled over the last five years, and analysts currently project earnings growth of 16% annually in the next few years. That growth trajectory is enough for the stock to double by 2030. The stock is also trading at a discounted price-to-earnings (P/E) multiple to other hyperscalers, which could boost returns if it rerates at a higher multiple.
Here are two reasons investors can expect Microsoft to meet those earnings growth estimates and deliver market-beating returns.
Image source: The Motley Fool.
1. Microsoft is leveraging a large installed customer base CEO Satya Nadella stated the opportunity on the last earnings call, saying, "We are at the beginning of one of the most consequential platform shifts that will change the entire tech stack as agents proliferate and become the dominant workload."
The advantage for Microsoft is that it already has a large installed base of enterprises that have been customers for years. Its productivity and business process revenue grew 17% year over year to $35 billion. Paid 365 Copilot seats (or licensed users) exceeded 20 million, with management reporting accelerating net additions and higher average revenue per user.
Microsoft's WorkIQ system provides Copilot with data intelligence and now has more than 17 exabytes of data. That's a powerful advantage. This data makes Copilot smarter and better able to leverage all of Microsoft's services to complete tasks.
Enterprises can use agents with the apps they already use. For example, agent mode in Microsoft 365 Copilot can automatically route tasks across Word, Excel, Outlook, Teams, and other apps. That might explain why nearly 90% of Fortune 500 companies are using active agents built with Copilot Studio.
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2. Microsoft is unlocking a massive cloud backlog Wall Street doesn't like Microsoft's guidance, which calls for up to $190 billion in capital expenditures in calendar 2026. This is more than Microsoft's trailing cash from operations of $170 billion, so investors are discounting the stock to account for lower margins and free cash flow.
Still, Microsoft is one of the leading cloud computing providers, with a growing backlog of $627 billion in remaining performance obligations. As it unlocks more compute capacity, management expects its enterprise cloud revenue on the Azure platform to accelerate in the second half of 2026.
In the long term, Microsoft's investments in developing its custom Maia AI chips and adding more compute capacity should lead to lower compute costs and greater AI efficiency. This can increase its margins and strengthen Microsoft's competitive position.
Overall, this appears to be a classic case of Wall Street punishing a stock for lack of near-term earnings visibility while underestimating Microsoft's opportunity to capitalize on growing demand for agentic AI. As Microsoft reports strong revenue growth in the coming quarters, the stock could recover and eventually double by 2030.
New York, New York--(Newsfile Corp. - July 18, 2026) - WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of common stock of Microsoft Corporation (NASDAQ: MSFT) between May 1, 2025 and January 28, 2026, inclusive (the "Class Period"), of the important August 11, 2026 lead plaintiff deadline.
SO WHAT: If you purchased Microsoft common stock during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.
WHAT TO DO NEXT: To join the Microsoft class action, go to https://rosenlegal.com/cases/microsoft-corporation/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than August 11, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually handle securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered billions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers.
DETAILS OF THE CASE: According to the lawsuit, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) Microsoft's Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems; (2) Microsoft's flagship proprietary AI model ranked well below competitors on a number of benchmark tests; (3) Microsoft needed to increase by billions of dollars its capital expenditures and divert graphics processing unit ("GPU") and central processing unit ("CPU") capacity away from fulfilling demand for its profitable Azure services in order to improve the competitive positioning of its critical Copilot family of products and increase its AI-related research and development ("R&D"); and (4) as a result, Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and Microsoft's Copilot offerings had lost market share to rival products, a trend that was increasing. When the true details entered the market, the lawsuit claims that investors suffered damages.
To join the Microsoft class action, go to https://rosenlegal.com/cases/microsoft-corporation/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm/.
Attorney Advertising. Prior results do not guarantee a similar outcome.
-------------------------------
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/305695
Source: The Rosen Law Firm PA
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Ken Griffin's Citadel Advisors has long counted Microsoft (NASDAQ:MSFT | MSFT Price Prediction), Amazon (NASDAQ:AMZN), and Apple (NASDAQ:AAPL) among its largest reported equity positions, and each mega-cap is trading through a very different chapter of the AI capex cycle.
, /PRNewswire/ -- Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC ("KSF"), announces that KSF has commenced an investigation into Microsoft Corporation ("Microsoft" or the "Company") (NasdaqGS: MSFT).
In recent years, Microsoft's cloud computing platform, known as Azure, has been its main growth driver providing customers with computing, networking, storage, mobile and web application services, artificial intelligence ("AI"), Internet of Things, cognitive services, and machine learning. In 2023, the Company introduced its own proprietary generative AI chatbot, Microsoft Copilot, subsequently highlighting the purported success of Copilot and its foray into AI development, claiming that Copilot offered best-in-class capabilities and enjoyed widespread and growing user adoption.
However, on January 28, 2026, the Company disclosed disappointing results for its fiscal second quarter ended December 31, 2025, including slower than expected growth of Azure. According to the Company, this was due to computational capacity constraints, as the Company had diverted central processing unit ("CPU") and graphics processing unit ("GPU") capacity to Copilot applications and AI-related research and development, while drastically increasing capital expenditures attributed to AI-related R&D, Copilot development, and capacity buildout costs. Further, growth of paid Copilot seats was far below analyst estimates and a fraction of the more than 450 million commercial Microsoft 365 users.
Thereafter, the Company and certain of its executives were sued in a securities class action lawsuit, charging them with failing to disclose material information during the class period in violation of federal securities laws, which remains ongoing.
KSF's investigation is focusing on whether Microsoft's officers and/or directors breached their fiduciary duties to its shareholders or otherwise violated state or federal laws.
If you have information that would assist KSF in its investigation, or have been a long-term holder of Microsoft shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-833-938-0905 or email KSF Managing Partner Lewis Kahn ([email protected]), or visit https://www.ksfcounsel.com/cases/nasdaqgs-msft/ to learn more.
About Kahn Swick & Foti, LLC
KSF, whose partners include former Louisiana Attorney General Charles C. Foti, Jr., is one of the nation's premier boutique securities litigation law firms. This past year, KSF was ranked by SCAS among the top 10 firms nationally based upon total settlement value. KSF serves a variety of clients, including public and private institutional investors, and retail investors - in seeking recoveries for investment losses emanating from corporate fraud or malfeasance by publicly traded companies. KSF has offices in New York, Delaware, California, Louisiana, Chicago, and a representative office in Luxembourg.
TOP 10 Plaintiff Law Firms - According to ISS Securities Class Action Services
To learn more about KSF, you may visit www.ksfcounsel.com.
Contact:
Kahn Swick & Foti, LLC
Lewis Kahn, Managing Partner
[email protected]
1-877-515-1850
1100 Poydras St., Suite 960
New Orleans, LA 70163
Microsoft (MSFT 1.67%) shares are trading at their cheapest valuation in years.
*Stock prices used were the afternoon prices of July 15, 2026. The video was published on July 17, 2026.
Parkev Tatevosian, CFA has positions in Microsoft. The Motley Fool has positions in and recommends Microsoft. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
New York, New York--(Newsfile Corp. - July 17, 2026) - WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of common stock of Microsoft Corporation (NASDAQ: MSFT) between May 1, 2025 and January 28, 2026, inclusive (the "Class Period"), of the important August 11, 2026 lead plaintiff deadline.
SO WHAT: If you purchased Microsoft common stock during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.
WHAT TO DO NEXT: To join the Microsoft class action, go to https://rosenlegal.com/cases/microsoft-corporation/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than August 11, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually handle securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered billions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers.
DETAILS OF THE CASE: According to the lawsuit, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) Microsoft's Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems; (2) Microsoft's flagship proprietary AI model ranked well below competitors on a number of benchmark tests; (3) Microsoft needed to increase by billions of dollars its capital expenditures and divert graphics processing unit ("GPU") and central processing unit ("CPU") capacity away from fulfilling demand for its profitable Azure services in order to improve the competitive positioning of its critical Copilot family of products and increase its AI-related research and development ("R&D"); and (4) as a result, Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and Microsoft's Copilot offerings had lost market share to rival products, a trend that was increasing. When the true details entered the market, the lawsuit claims that investors suffered damages.
To join the Microsoft class action, go to https://rosenlegal.com/cases/microsoft-corporation/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm/.
Attorney Advertising. Prior results do not guarantee a similar outcome.
-------------------------------
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/305661
Source: The Rosen Law Firm PA
Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.
Microsoft NASDAQ:MSFT shares fell 1.5% on Friday, extending a difficult year for the software giant as investors continued to weigh heavy artificial intelligence spending against the company's long-term growth prospects.
The stock has declined more than 20% in 2026 and nearly 23% over the past year, even as Microsoft has continued investing aggressively in AI infrastructure and Azure cloud services.
Several Wall Street firms revised their price targets this week ahead of Microsoft's fiscal fourth-quarter earnings report on July 29, while largely maintaining bullish ratings on the stock.
Wall Street lowers targets but maintains bullish ratingsCiti reduced its price target on Microsoft to $570 from $620 while maintaining a Buy rating.
According to reports, the firm said the lower target reflected broader valuation compression across software stocks rather than any deterioration in Microsoft's business fundamentals.
The bank said its channel checks remained positive, highlighting healthy adoption of Microsoft 365 Copilot and the company's positioning as enterprises increasingly optimize AI spending.
Citi expects Microsoft to deliver a strong fiscal fourth-quarter report but believes investors will focus closely on management's outlook for fiscal 2027, particularly regarding operating margins and capital expenditure.
Other brokerages also adjusted their targets.
Mizuho analyst Gregg Moskowitz lowered his price target to $490 from $515 while maintaining an Outperform rating.
"SaaS (software-as-a-service) continues to be resilient, although multiples continue to be plagued by investor concerns about AI-led disruption," Moskowitz said in a research report on software stocks.
He added that Microsoft continues to see improvement in its Azure cloud computing and Microsoft 365 Copilot businesses despite broader concerns surrounding AI-native competitors and infrastructure spending.
Wells Fargo also lowered its price target to $625 from $650 while maintaining its Overweight rating, citing questions around cloud market share and the pace of capital expenditure.
Evercore ISI moved in the opposite direction, raising its price target to $525 from $510 while maintaining an Outperform rating.
Microsoft is scheduled to report fiscal fourth-quarter results after the market closes on July 29.
Consensus estimates compiled by Fiscal AI and Koyfin call for earnings of $4.24 per share on revenue of $86.66 billion.
Analysts expect Azure growth and operating margin guidance to be the primary focus during the earnings release.
While Citi expects the fourth-quarter results to be solid, the firm believes management's commentary on fiscal 2027 could prove more important for investors as Microsoft continues expanding its AI infrastructure.
Heavy AI investments remain under scrutinyMicrosoft's aggressive capital spending remains one of the biggest concerns for investors.
The company spent $30.88 billion on capital expenditures during its fiscal third quarter, up 84.4% from a year earlier.
According to Forbes estimates, Microsoft's total fiscal 2026 capital expenditure could reach approximately $190 billion as the company continues investing in AI data centers, Azure infrastructure and computing capacity.
The elevated spending has pressured margins and free cash flow, contributing to the stock's underperformance despite continued business growth.
At the same time, analysts note that enterprise demand for AI remains healthy.
Bernstein's mid-year CIO survey pointed to strong IT budget growth in 2026, supporting Azure demand, although investors continue to monitor whether Microsoft can translate that investment into market share gains and stronger financial returns.
Pershing Square's five-stock book is quietly beating the market while four of those names bleed red year to date, and one just dropped a $14.8 billion takeover bid this week. Here is whether Ackman's conviction holds up or leaves you holding the bag.
STAMFORD, Conn.--(BUSINESS WIRE)---- $III #Azure--Firms in the U.S. are integrating Microsoft AI and cloud capabilities into AI-native operating models that improve enterprise performance, ISG says.
NEW YORK, July 17, 2026 (GLOBE NEWSWIRE) -- The Gross Law Firm issues the following notice to shareholders of Microsoft Corporation (NASDAQ: MSFT).
Shareholders who purchased shares of MSFT during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery.
ALLEGATIONS: The complaint alleges that during the class period, Defendants issued materially false and/or misleading statements and/or failed to disclose that: (a) Microsoft’s Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems; (b) Microsoft’s flagship proprietary AI model ranked well below competitors on a number of benchmark tests; (c) Microsoft needed to increase by billions of dollars its capital expenditures and divert GPU and CPU capacity away from fulfilling demand for its profitable Azure services in order to improve the competitive positioning of its critical Copilot family of products and increase its AI-related R&D; and (d) as a result of (a)-(c) above, Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and the Company’s Copilot offerings had lost market share to rival products, a trend that was increasing.
DEADLINE: August 11, 2026 Shareholders should not delay in registering for this class action. Register your information here: https://securitiesclasslaw.com/securities/microsoft-corporation-loss-submission-form/?id=194333&from=3
NEXT STEPS FOR SHAREHOLDERS: Once you register as a shareholder who purchased shares of MSFT during the timeframe listed above, you will be enrolled in a portfolio monitoring software to provide you with status updates throughout the lifecycle of the case. The deadline to seek to be a lead plaintiff is August 11, 2026. There is no cost or obligation to you to participate in this case.
WHY GROSS LAW FIRM? The Gross Law Firm is a nationally recognized class action law firm, and our mission is to protect the rights of all investors who have suffered as a result of deceit, fraud, and illegal business practices. The Gross Law Firm is committed to ensuring that companies adhere to responsible business practices and engage in good corporate citizenship. The firm seeks recovery on behalf of investors who incurred losses when false and/or misleading statements or the omission of material information by a company lead to artificial inflation of the company's stock. Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT:
The Gross Law Firm
15 West 38th Street, 12th floor
New York, NY, 10018
Email: [email protected]
Phone: (646) 453-8903
Microsoft Corp (NASDAQ:MSFT) CEO Satya Nadella criticized Anthropic's Fable 5 model in an internal meeting with Copilot engineers, saying the AI's refusal of certain requests feels "editorially controlled" and "doesn't make sense," CNBC reported.
"If you use Fable, when it refuses for any random thing, it just is like, when was the last time you had a creation tool that was so editorially controlled?" Nadella told the engineers. "It doesn't make sense."
Nadella also weighed in on the broader question of AI concentration, arguing against a market dominated by a small number of players. "It can't be that there are only two companies in the world with token capital, and everybody else is renting it," he said.
Anthropic restored access to Fable on July 1 after suspending the model to comply with a U.S. government export control directive. The company said at the time that the updated safeguards would flag a somewhat higher share of harmless requests than the previous version had. A support page indicates that queries touching on certain elements of large-scale model development, among other subjects, may be handled by an earlier version of Fable rather than the current one.
Microsoft has committed $5 billion to Anthropic, while Anthropic has pledged to direct $30 billion toward Microsoft's Azure cloud platform. Microsoft also launched Copilot Cowork this year, a workplace productivity offering built around Anthropic's technology.
Microsoft shares were down 2% in early Friday trading.
Rebecca Walser (@walserwealth) talks about why she believes markets are selling off tech as Friday's trading session continues that weakness in the sector. She discusses CapEx concerns surrounding hyperscalers like Alphabet (GOOGL) and Microsoft (MSFT), while highlighting sectors she sees having strong AI momentum.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Microsoft (NASDAQ:MSFT | MSFT Price Prediction) has become one of the most closely watched stocks in the S&P 500 as it grinds sideways through a rough first half of 2026. With 54 analysts rating shares Buy or Strong Buy and only three at Hold, sell-side conviction is nearly unanimous. Our proprietary model agrees, but with a more conservative destination than Wall Street’s consensus.
Our 24/7 Wall St. price target for Microsoft is $503.02 over the next 12 months, implying 26.12% upside from the current price of $398.84. We rate MSFT a buy with high confidence at 90%.
24/7 Wall St. Price Target Summary Metric Value Current Price $398.84 24/7 Wall St. Price Target $503.02 Upside 26.12% Recommendation BUY Confidence Level 90% A Painful Year Meets a Fortress Business Microsoft has lagged in 2026. The stock is down 17.83% year to date and 21.16% over the past year, trading 2% below its 52-week high of $551.05 only because it recently bounced 3.21% in the past week off its $349.20 low.
Recent bearish coverage includes securities class action filings alleging misleading statements about Azure growth and Copilot functionality, which have weighed on sentiment ahead of the July 29, 2026 earnings report.
Fundamentals tell a different story. In Q3 FY2026, Microsoft delivered EPS of $4.27 against a $4.07 estimate on revenue of $82.89 billion, up 18.3% year over year.
Azure grew 40%, the AI business hit a $37 billion annualized run rate, up 123%, and commercial remaining performance obligations swelled to $627 billion. This is Microsoft’s fourth consecutive EPS beat.
Why Bulls See a Breakout Ahead The bull case rests on three pillars: contracted backlog, the restructured OpenAI partnership, and Azure’s competitive position. Commercial RPO of $627 billion nearly doubled year over year gives Microsoft the deepest forward revenue visibility in software.
Microsoft’s IP rights extend through 2032. Azure surpassed Citi Q2 2026 CIO survey identified Microsoft as the top vendor enterprises plan to increase AI spending with, Amazon and Google.
If Azure sustains 40% growth and margins normalize as capex intensity peaks, the bull scenario points to $600.73 within 12 months, a 50.62% total return, aligning with the high end of Street targets.
What Could Go Wrong Capex is the elephant. Q3 FY2026 capital expenditures reached $30.88 billion, up 84.4%, and full-year FY2025 free cash flow contracted. Bulls counter that this spending backs the $627 billion RPO and a Morgan Stanley projection of nearly 4x hyperscaler compute capacity by 2028.
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Two active securities class actions cite these concerns, and analyst target trims have been noted. The bear case lands at $446.40, an 11.92% return, if Azure decelerates and AI monetization slips.
How Microsoft Compares to Alphabet and Amazon Alphabet (NASDAQ:GOOGL) offers a sharper cloud comparison. Google Cloud has been growing faster than Azure’s 40%, and Alphabet trades at a similar forward multiple, making Microsoft’s premium narrower than it looks.
Amazon (NASDAQ:AMZN) provides counterpoint. AWS continues to trail Azure’s 40% growth but on a larger base. Amazon trades at a richer trailing P/E than Microsoft’s 23. On a growth-adjusted basis, MSFT looks reasonably priced.
Company Trailing P/E Cloud Growth (Latest Q) Microsoft 23 40% Alphabet ~28 63% Amazon 35 28% The peer group makes our $503 target look conservative. MSFT is the cheapest hyperscaler on trailing earnings while running the second-fastest cloud growth rate.
Our Take on Microsoft Here The 24/7 Wall St. price target of $503.02 and buy rating reflect our view that the current selloff has overshot fundamentals.
The setup strengthens if Q4 FY2026 earnings on July 29 confirm Azure guidance in the high 30s and show capex intensity beginning to plateau. The thesis weakens if securities litigation gains traction or Azure guides below 35%.
Microsoft Price Projection 2026-2030 Our model projects Microsoft could compound from here at a rate consistent with our five-year base case annualized return of 14.55%.
Year 24/7 Wall St. Price Target 2026 $503 2027 $576 2028 $660 2029 $756 2030 $866 These projections assume Microsoft continues executing on Azure and AI monetization. Significant upside could come from faster AI diffusion; downside would follow prolonged capex overhang or material AWS or Google Cloud share gain.
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NEW YORK, July 17, 2026 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces that a class action lawsuit has been filed against Microsoft Corporation (NASDAQ:MSFT) and certain of the Company’s senior executives for securities fraud after its significant stock drop resulting from potential violations of the federal securities laws.
If you invested in Microsoft, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/microsoft-class-action-lawsuit.
Key Details of the Microsoft ($MSFT) Class Action:
Lead Plaintiff Deadline: August 11, 2026Alleged Misconduct: Securities fraud alleging that Microsoft misled investors regarding its Azure cloud computing platform and AI chatbot CopilotStock Drop: January 28, 2026 – 10% Stock DropCourt: U.S. District Court for the Western District of WashingtonAction: Contact BFA Law to discuss your rights Investors have until August 11, 2026 to ask the Court to be appointed to lead the case. The complaint asserts securities fraud claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Microsoft common stock. The class action is pending in the U.S. District Court for the Western District of Washington. It is captioned City of St. Clair Shores Police and Fire Retirement System, et al., No. 26-cv-02071.
Why is Microsoft Being Sued for Securities Fraud?
Microsoft is a multinational technology company that develops software, cloud services, and devices. In recent years, Microsoft’s cloud computing platform named Azure has been Microsoft’s main growth driver. A key reason for Azure’s recent growth is Microsoft’s multi-billion-dollar investment into AI, including the development of its own generative AI chatbot named Copilot.
According to the complaint, during the relevant period, Microsoft consistently touted Copilot’s best-in-class capabilities, which purportedly drove widespread and growing user adoption. Copilot’s apparent success allowed Microsoft to report surging Azure-related revenue.
As alleged, in truth, Copilot suffered from severe functionality issues that caused user adoption to decline and put Microsoft’s Azure revenue at risk.
Why did Microsoft’s Stock Drop?
On January 28, 2026, Microsoft announced disappointing 2Q 2026 financial results and that Azure growth had slowed suddenly. Microsoft also allegedly revealed for the first time that the number of Microsoft 365 Copilot premium customers totaled only 15 million, materially below analyst estimates.
This news caused the price of Microsoft common stock to decline $48.13 per share, or 10%, from $481.63 per share on January 28, 2026, to $433.50 per share on January 29, 2026.
Additionally, on February 3, 2026, The Wall Street Journal reported in an article titled “Microsoft’s Pivotal AI Product Is Running Into Big Problems” that severe challenges and functionality issues had plagued Copilot, causing the application to lose market share. Specifically, The Wall Street Journal reported that “[c]onfusing brand positioning and interoperability problems have frustrated users.”
Click here for more information: https://www.bfalaw.com/cases/microsoft-class-action-lawsuit.
What Can You Do?
If you invested in Microsoft, you may have legal options and are encouraged to submit your information to the firm.
All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named “Elite Trial Lawyers” by the National Law Journal, “Litigation Stars” by Benchmark Litigation, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360 and “SuperLawyers” by Thomson Reuters.
Most recently, The Legal 500 awarded BFA the most client satisfaction accolades of any plaintiff’s securities litigation law firm, with clients noting: “[t]here is no better service provider in the practice area,” “[t]he interest of the client is always front and center,” and “[t]here isn’t a better firm in this space.” One testimonial described the firm as “nimble and entrepreneurial,” with a “relentless focus on adding value for clients.”
Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
For more information about BFA and its attorneys, please visit https://www.bfalaw.com.
New York, New York--(Newsfile Corp. - July 16, 2026) - WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of common stock of Microsoft Corporation (NASDAQ: MSFT) between May 1, 2025 and January 28, 2026, inclusive (the "Class Period"), of the important August 11, 2026 lead plaintiff deadline.
SO WHAT: If you purchased Microsoft common stock during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.
WHAT TO DO NEXT: To join the Microsoft class action, go to https://rosenlegal.com/cases/microsoft-corporation/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than August 11, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually handle securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered billions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers.
DETAILS OF THE CASE: According to the lawsuit, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) Microsoft's Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems; (2) Microsoft's flagship proprietary AI model ranked well below competitors on a number of benchmark tests; (3) Microsoft needed to increase by billions of dollars its capital expenditures and divert graphics processing unit ("GPU") and central processing unit ("CPU") capacity away from fulfilling demand for its profitable Azure services in order to improve the competitive positioning of its critical Copilot family of products and increase its AI-related research and development ("R&D"); and (4) as a result, Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and Microsoft's Copilot offerings had lost market share to rival products, a trend that was increasing. When the true details entered the market, the lawsuit claims that investors suffered damages.
To join the Microsoft class action, go to https://rosenlegal.com/cases/microsoft-corporation/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm/.
Attorney Advertising. Prior results do not guarantee a similar outcome.
-------------------------------
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/305508
Source: The Rosen Law Firm PA
Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.
WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of common stock of Microsoft Corporation (NASDAQ: MSFT) between May 1, 2025 and January 28, 2026, inclusive (the “Class Period”), of the important August 11, 2026 lead plaintiff deadline.
SO WHAT: If you purchased Microsoft common stock during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.
WHAT TO DO NEXT: To join the Microsoft class action, go to https://rosenlegal.com/cases/microsoft-corporation/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than August 11, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually handle securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered billions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs’ Bar. Many of the firm’s attorneys have been recognized by Lawdragon and Super Lawyers.
DETAILS OF THE CASE: According to the lawsuit, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) Microsoft’s Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems; (2) Microsoft’s flagship proprietary AI model ranked well below competitors on a number of benchmark tests; (3) Microsoft needed to increase by billions of dollars its capital expenditures and divert graphics processing unit (“GPU”) and central processing unit (“CPU”) capacity away from fulfilling demand for its profitable Azure services in order to improve the competitive positioning of its critical Copilot family of products and increase its AI-related research and development (“R&D”); and (4) as a result, Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and Microsoft’s Copilot offerings had lost market share to rival products, a trend that was increasing. When the true details entered the market, the lawsuit claims that investors suffered damages.
To join the Microsoft class action, go to https://rosenlegal.com/cases/microsoft-corporation/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm/.
Attorney Advertising. Prior results do not guarantee a similar outcome.
Contact Information:
Laurence Rosen, Esq.
Phillip Kim, Esq.
The Rosen Law Firm, P.A.
275 Madison Avenue, 40th Floor
New York, NY 10016
Tel: (212) 686-1060
Toll Free: (866) 767-3653
Fax: (212) 202-3827 [email protected]
www.rosenlegal.com
Microsoft CEO Satya Nadella told employees Wednesday that Anthropic's limits on requests that users submit to the startup's high-end Fable artificial intelligence model don't make sense.
The comments come as executives express interest in cost-efficient models that don't come from the most well funded labs but can handle software development and other tasks inside companies. On Thursday Chinese startup Moonshot AI announced an open-source model that it said surpasses recent releases from Anthropic and OpenAI.
"If you use Fable, when it refuses for any random thing, it just is like, when was the last time you had a creation tool that was so editorially controlled?" Nadella told engineers working on Microsoft's Copilot AI software, according to a copy of his remarks that was provided to CNBC. "It doesn't make sense."
Microsoft declined to comment. An Anthropic spokesperson did not immediately respond to a request for comment.
When end users ask Fable about some aspects of creating large-scale models, among other topics, Anthropic might send responses from an older version, according to a support page. Some people have called out the rejections on social media.
Anthropic said when it announced Fable 5 in early June that it was attempting to reduce false positives for blocked requests. Three days after the introduction, Anthropic cut off Fable access to comply with a U.S. government export control directive, and on July 1 the company restored the model, saying "the new safeguards will flag a slightly higher fraction of harmless requests than the previous Fable safeguards."
The Microsoft chief's remarks represent criticism of a valued partner and client. Anthropic's Claude Code software development tool has become popular among programmers and people with less technical talent. In November Microsoft said it was making a $5 billion investment in Anthropic, as the startup agreed to spend $30 billion on Microsoft's Azure cloud. This year Microsoft unveiled Copilot Cowork, a business productivity assistant that draws on the startup's models.
Investors have worried that Microsoft could face disruption from models that quickly write software, as the company allocates tens of billions per quarter to data center expansion. Shares have fallen 17% so far this year, while the Nasdaq Composite index has gained 11%.
Lately Nadella has argued that companies should be able to cost-efficiently develop custom models and draw on internal data, without letting it flow out to other entities, such as companies in the business of building models. In a Sunday blog post, he invoked Palantir CEO Alex Karp, who said on CNBC that technical organizations "want to know they own the means of production."
Microsoft offers the Foundry service where developers can adopt over 11,000 models, including some from Anthropic and OpenAI.
"It can't be that there are only two companies in the world with token capital, and everybody else is renting it," Nadella told the engineers. "It makes no economic sense." Tokens measure computing usage of AI models.
Microsoft tied itself tightly to OpenAI through a series of investments, but the two companies drifted and became competing with each other after the abrupt 2023 ousting and reinstatement of OpenAI's CEO, Sam Altman, with little notice to Nadella.
OpenAI said in April it would bring its models beyond Azure to cloud infrastructure leader Amazon Web Services. Microsoft, for its part, announced a series of in-house models, including one for coding, in June. Its stake in OpenAI's for-profit business was worth $135 billion as of October.
Nadella also said it's good Microsoft is merging products for consumer and corporate workers. In March, he announced that former Snap executive Jacob Andreou would take charge of Copilot across both categories.
The unification is something "we should have done maybe day one," he said. In April Microsoft said it had over 20 million paid seats for the work-centric Copilot, or 4% of the cloud-based Office customer base.
WATCH: We see Microsoft accelerating growth in next few years, says Wolfe's Zukin
, /PRNewswire/ -- Glancy Prongay Wolke & Rotter LLP announces that investors with losses have opportunity to lead the securities fraud class action lawsuit against Microsoft Corporation ("Microsoft" or the "Company") (NASDAQ: MSFT).
IF YOU SUFFERED A LOSS ON YOUR MICROSOFT INVESTMENTS, CLICK HERE BEFORE AUGUST 11, 2026 (LEAD PLAINTIFF DEADLINE) TO PARTICIPATE IN THE SECURITIES FRAUD LAWSUIT
What Is The Lawsuit About?
The complaint filed alleges that, between May 1, 2025 and January 28, 2026, Defendants failed to disclose to investors: (1) that Microsoft's Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems; (2) that Microsoft's flagship proprietary AI model ranked well below competitors on a number of benchmark tests; (3) that Microsoft needed to increase by billions of dollars its capital expenditures and divert GPU and CPU capacity away from fulfilling demand for its profitable Azure services in order to improve the competitive positioning of its critical Copilot family of products and increase its AI-related R&D; (4) that, as a result of the foregoing, Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and the Company's Copilot offerings had lost market share to rival products, a trend that was increasing; and (5) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Contact Us To Participate or Learn More:
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us.
Charles Linehan, Esq.,
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100,
Los Angeles California 90067
Email: [email protected]
Telephone: 310-201-9150 (Toll-Free: 888-773-9224)
Visit our website at www.glancylaw.com.
Follow us for updates on LinkedIn, Twitter, or Facebook.
If you inquire by email, please include your mailing address, telephone number and number of shares purchased.
To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contact Us:
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100,
Los Angeles, CA 90067
Charles Linehan
Email: [email protected]
Telephone: 310-201-9150
Toll-Free: 888-773-9224
Visit our website at: www.glancylaw.com.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
The stock market has spent much of the AI boom rewarding companies that can turn artificial intelligence spending into revenue, profits, and cash flow. But in 2026, investors have expanded the list of winners. The rally has moved beyond mega-cap technology companies and into smaller companies positioned to benefit from the massive buildout of AI infrastructure.
That shift has pushed small-cap stocks into a leadership role. The Russell 2000 index has gained 20% so far in 2026, putting it on pace for its strongest annual performance since 2003. Meanwhile, the S&P 500 has climbed 11%, and the Magnificent 7 group of mega-cap AI leaders has advanced just 4%.
The surprising part is not simply that small caps are winning. It is which small caps are winning.
The Market Is Rewarding AI Exposure, Not Profits Data from HSBC shows the current small-cap rally has turned traditional investing logic on its head.
Historically, profitable companies tend to outperform weaker businesses over time because earnings provide a foundation for valuation. But since mid-2025, the opposite has happened inside the Russell 2000.
According to HSBC:
Russell 2000 Group Return Since Mid-2025 2026 Year-To-Date Return Companies with negative EPS +154% +45% Companies with positive EPS +34% +18% In other words, unprofitable companies have outperformed profitable peers by a wide margin.
That does not mean investors have suddenly stopped caring about earnings. Instead, the market is placing a premium on companies that could become important suppliers, service providers, or infrastructure builders in the AI economy.
To put that into context, the biggest AI beneficiaries are not limited to companies designing chips or building large language models. The AI expansion requires data centers, power infrastructure, networking equipment, cooling systems, and specialized software. Many of those opportunities sit outside the traditional technology giants.
Companies building the tools and infrastructure needed to support rising AI workloads are seeing investor interest even when current earnings remain negative. The market is effectively betting that today’s losses represent investment ahead of future demand.
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Coincidentally, this resembles earlier technology cycles, where investors often valued future market opportunities before companies produced consistent profits. The difference today is the scale of spending.
The four largest cloud providers — Microsoft (NASDAQ:MSFT | MSFT Price Prediction), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG), and Meta Platforms (NASDAQ:META) — continue committing hundreds of billions of dollars toward AI infrastructure. Smaller suppliers connected to that spending are benefiting from the ripple effect.
The Risk Behind the Rally Granted, investors should not confuse AI exposure with automatic success. A company losing money today still has to eventually produce profits. Rising valuations based on future expectations can create painful corrections if growth slows or AI spending does not translate into stronger financial results.
The 154% gain for unprofitable Russell 2000 companies since mid-2025 shows how aggressively investors are pricing in future opportunity. It also shows how much optimism is already reflected in some valuations.
Smart investors should focus on the companies with a clear path from AI demand to revenue growth, improving margins, and eventual profitability. A business connected to AI infrastructure is not automatically an AI winner.
Key Takeaway In short, the Russell 2000’s 20% gain in 2026 reflects a major change in market leadership. Small-cap stocks are benefiting as investors look beyond the Magnificent 7 and search for the next layer of AI beneficiaries.
HSBC’s data shows the market is currently rewarding AI exposure more than current earnings, with unprofitable small caps leading their profitable peers.
That trend can continue if AI infrastructure spending keeps expanding. But ultimately, the best long-term investments will be the small companies that can turn today’s AI opportunity into tomorrow’s earnings. The rally may be broadening, but profits still matter.
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Recently, several Wall Street analysts updated their outlooks on Microsoft while maintaining bullish ratings ahead of the company’s quarterly earnings later this month.
Analysts Update Price ForecastsEarnings In FocusMicrosoft is scheduled to report quarterly results on July 29.
Wall Street expects earnings of $4.23 per share, up from $3.65 a year earlier. Revenue is projected to rise to $87.61 billion from $76.44 billion.
BNP Paribas Cuts Price Forecast, Keeps OutperformBNP Paribas expects Microsoft to deliver another quarter of accelerating cloud growth, forecasting Azure revenue growth of about 41%, ahead of the roughly 40% consensus estimate. It also expects stronger Microsoft 365 Copilot adoption during the seasonally stronger fourth quarter, with potential for 7 million to 8 million new paid seats.
Revenue Growth Seen AcceleratingBNP Paribas expects investors to focus on three key topics during the earnings call: Copilot adoption, initial fiscal 2027 operating margin guidance and Microsoft’s capital spending outlook.
The firm forecasts fiscal 2027 revenue growth of nearly 18%, above the Street’s expectation of about 16.8%, driven by continued Azure momentum and expanding artificial intelligence workloads.
However, it also expects operating margins to contract modestly as depreciation expenses rise alongside Microsoft’s AI infrastructure investments.
BNP Paribas increased its estimate for calendar 2026 cash capital expenditures to $195 billion, citing continued component inflation, and expects even higher spending in fiscal 2027.
AI Leadership Supports Long-Term ViewDespite trimming its valuation, BNP Paribas said Microsoft’s leadership across cloud computing, enterprise software and generative AI continues to support a constructive long-term outlook.
The firm believes Azure, Microsoft 365, GitHub, Dynamics, cybersecurity products and the company’s partnership with OpenAI position Microsoft to benefit from sustained enterprise AI adoption.
Price ActionMSFT Stock Price Activity: Microsoft shares were up 1.13% at $400.10 at the time of publication on Thursday, according to Benzinga Pro data.
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