Track market-moving stories before they get noisy

16.7.2026 19:00

Americkým indexům se dnes nedaří. Po počáteční kladném otevření se v průběhu dne pomalu ale jistě sunou do záporných hodnot, momentálně s výjimkou Dow Jones, který je na kladné nule. Technologický sektor je i nadále tlačen vahou čipového sektoru, který nadále koriguje letošní růstovou rallye. V Americké společnosti se začíná objevovat napětí kolem sektoru umělé inteligence, přičemž se začíná mluvit o její regulaci. V obci v Michiganu se lidé postavili proti výstavbě datového centra za 16 mld. USD, který má být velkým společným projektem firem Oracle, Open AI, Related Digital, Blackstone a Walbridge. Investoři jsou tedy stále opatrní, co se týče budoucnosti tohoto sektoru.

Nejlépe se daří klasickým technologickým společnostem těžící z poskytování výpočetního výkonu, takzvaný hyperscaleři. Microsoft přidává +1,88 %. V čele poklesu v čipovém sektoru je opět Micron, který odepisuje -6,11 %. Podobně je na tom ARM -8,41 %.

Oproti nim se kapitál opět přelévá do defenzivních titulů. Zde excelují například McDonald +2,6 % či MasterCard +2,4 %. Daří se i realitnímu sektoru, kterému pomáhá vidina nadále se nezvyšujících úrokových sazeb. Lídr na tomto trhu Realty Income přidává slušné 3 %. Vici Properties pak +2,57 %. Opačný efekt to má na cenné kovy, kde zlato odepisuje -1,38 % a bojuje o udržení supportní úrovně 4000 USD.

Geopolitický vývoj v Hormuzském průlivu mírně ustrnul, nelepší se ale ani nehorší. Ropa WTI osciluje kolem nuly a nyní odepisuje -0,67 %.

Index Dow Jones +0,1 % na 52711,63 b.
S&P 500 -0,24 % na 7554,53 b.
Nasdaq Composite -0,84 % na 26048,65 b.

Index S&P 500 -0,24 % na 7554,53 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Nezbytná spotřeba +2,3 % Informační technologie -1,7 % Zdravotní péče +2 % Průmysl -0,2 % Reality +1,5 % Utility -0,2 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Abbott Laboratories (ABT) +11 % Corning (GLW) -10 % Erie Indemnity (ERIE) +9,5 % Sandisk Corp (SNDK) -10 % Cintas Corp (CTAS) +7,1 % Western Digital Corp (WDC) -9,9 % Ingersoll Rand (IR) +6,9 % Seagate Technology Holdings (STX) -8,6 % JB Hunt Transport Services (JBHT) +6,6 % Marvell Technology (MRVL) -8,4 %
Jan Pazourek, Fio banka, a.s.

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Meta Platforms (NASDAQ:META | META Price Prediction) and Microsoft (NASDAQ:MSFT) both delivered strong quarters on April 29, 2026, yet their insider behavior since tells wildly different stories. Meta delivered a blowout earnings report. Microsoft compounded its AI backlog. But executives at one company are cashing out at scale while the other’s team is largely holding.

Blowout Ads Vs. A $627 Billion Backlog Meta’s Q1 delivered EPS of $10.44 against a $6.66 consensus, with revenue up 33.08% to $56.31 billion. Though $3.13 of that EPS came from a one-time tax benefit, Reality Labs still bled $4.03 billion, and Zuckerberg raised full-year capex to $125–145 billion to fund what he called “personal superintelligence.”

Microsoft’s Q3 FY2026 landed cleaner. Revenue rose 18.3% to $82.89 billion, Azure grew 40%, and the AI business hit a $37 billion annualized run rate, up 123%. Commercial remaining performance obligations swelled to $627 billion. That is contracted revenue Meta cannot match with ad impressions.

The C-Suite Is Voting With Its Wallet Meta CFO Susan Li disposed of 17,943 shares between May 15 and 18 at prices near $618. COO Javier Olivan unloaded over 27,000 shares across 50+ separate transactions from April 13 through June 15. CTO Andrew Bosworth, CPO Chris Cox, and Vice Chairman Dina Powell all sold on May 15.

Microsoft’s activity looks tame by comparison. Judson Althoff sold 15,500 shares on June 1, and CMO Takeshi Numoto trimmed 7,000 shares in early June. The activity looks scattered and routine, with disposals spread out and untied to any single vesting date.

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Signal Meta Microsoft Q1 EPS beat 56.79% 4.90% YTD stock -6.58% -19.24% Contracted backlog None $627B Insider selling Systemic, coordinated Scattered, routine The August Trial Changes The Math Meta’s $1.4 trillion penalty demand from state attorneys general in the upcoming August youth safety trial, layered on top of a $375 million New Mexico civil verdict, gives the executive selling a pointed edge. Meta’s 10-Q flagged youth-related litigation with additional 2026 trials that may result in material losses. Microsoft’s legal exposure centers on a federal securities fraud class action tied to Azure and AI capacity constraints, which management is addressing through Copilot team restructuring.

Prediction markets assign a 72% probability that Meta outvalues OpenAI by year-end, so the crowd sees survival as the base case. Still, crowds do not sit on cap tables.

Why Microsoft’s Setup Looks Cleaner Than Meta’s Right Now When a CFO and COO liquidate into a 56% earnings beat, I take that as a signal about what they see coming. Microsoft’s -19.24% YTD drawdown looks painful, yet the $627 billion backlog and steady executive holdings give a clearer path to owning the AI cycle without August headline risk. If you want turnaround torque, Meta at a 22x multiple could work. The contracted revenue and quieter cap table make Microsoft’s setup easier to underwrite here.

Meet America's Newest $1b Unicorn (Sponsor) A US startup just passed a $1 billion private valuation, joining billion-dollar private companies like OpenAI and ByteDance. Unlike those other unicorns, you can invest in EnergyX right now; but only until July 16.

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Contact [email protected] for any questions or corrections.

NEW YORK--(BUSINESS WIRE)--Levi & Korsinsky, LLP notifies investors that Jared Spataro, Microsoft Corporation's (NASDAQ: MSFT) Chief Marketing Officer for AI at Work, is named as a defendant in a securities class action covering purchases between May 1, 2025 and January 28, 2026. Find out if you qualify to recover losses from the MSFT securities action. You may also contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.Microsoft shares traded above $550 per share during t.

Microsoft (MSFT, Financials) appears to be changing how it sells artificial intelligence to business customers. The company is reportedly training its sales tea

NEW YORK--(BUSINESS WIRE)---- $MSFT #BFA--Microsoft Investors are Reminded to Contact BFA Law about the Filed Securities Fraud Class Action Lawsuit to Recover Investment Losses.

Microsoft (MSFT +2.70%) is scheduled to release its fiscal 2026 fourth-quarter results (ended June 30) on July 29, and I think it could spark a recovery in the company's languishing stock, which is currently down 29% from its record high.

Microsoft has been a casualty of the broader sell-off in the software sector, as investors fear that the growing adoption of artificial intelligence (AI) could render legacy software products obsolete. But the company is proving it can use this revolutionary technology to its advantage, not just in its software business but also in its booming cloud computing segment.

Microsoft stock is heading into July 29 at a very attractive price, so here's why it could be a good long-term buy before the earnings release.

Image source: Getty Images.

All eyes on Copilot adoption Microsoft developed its own AI virtual assistant called Copilot, which it embedded in the Windows operating system, Edge internet browser, and Bing search engine for free. But it's also available as a paid add-on to the 365 productivity suite, helping users rapidly create content in Word, Excel, PowerPoint, Outlook, and more.

Companies around the world pay for more than 400 million 365 licenses for their employees, and all of them are candidates for the Copilot add-on, so this move represents a huge financial opportunity for Microsoft. By the end of the fiscal 2026 third quarter, ended March 31, enterprises had added Copilot to 20 million licenses, up by an eye-popping 250% year over year.

While pure-play AI companies OpenAI and Anthropic have to acquire customers from scratch, Microsoft can sell Copilot and other AI products into its enormous existing customer base. Therefore, while some investors believe legacy enterprise software is in trouble, Microsoft is turning its product portfolio into a huge advantage in the AI race.

Copilot adoption will be closely watched by investors when the company reports its fourth-quarter results on July 29. I think further triple-digit growth could flip the opinion of some of the more bearish investors.

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Azure likely grew at a rapid pace, again Developing AI models from scratch requires substantial computing capacity, which is typically delivered by large data centers equipped with thousands of specialized chips. Most enterprises can't afford to build this infrastructure themselves, so they rent it from cloud computing platforms such as Microsoft Azure.

Microsoft already operates data centers worldwide, but it's working to double its footprint over the next two years to meet demand for computing power from the AI industry. In fact, as of March 31, the company had a staggering $627 billion order backlog from customers who were waiting for more infrastructure to come online, and that figure doubled from the same time last year.

Azure's total revenue increased by 40% year over year during the third quarter, an acceleration from the 39% growth it delivered three months earlier in the second quarter. But considering Microsoft thinks it can convert its entire $627 billion backlog into revenue over the next two and a half years, I think even faster growth could be ahead.

If Microsoft shows even further growth in its order backlog on July 29, that will only increase my conviction that Azure is on track for more blockbuster quarterly revenue results.

Should you buy Microsoft stock before July 29? The 29% decline in Microsoft stock from its record high has pushed its price-to-earnings (P/E) ratio down to just 22.9, making it substantially cheaper than the Nasdaq-100 index, which has a P/E of 34.5. In other words, Microsoft appears to be heavily undervalued compared with a basket of its big-tech peers.

Its stock looks even more attractive when looking ahead. Based on Wall Street's earnings estimate for fiscal 2027 (which started on July 1), its forward P/E is 19.9.

Data by YCharts.

If we assume Wall Street's earnings estimate proves to be accurate, Microsoft stock would have to soar by 73% over the next 12 months just to trade in line with the 34.5 P/E ratio of the Nasdaq-100. That isn't unrealistic considering Microsoft averaged a P/E of 32.7 over the last 10 years.

Simply put, investors are getting a fantastic price for Microsoft heading into its latest quarterly report on July 29. It will probably take a series of positive results over the next year or so to rebuild investors' confidence in its software business, but the rewards might be worth the wait.

Microsoft appears to be prepping its sales team to get more competitive with the other major players in the AI industry.

At an internal meeting on Tuesday, the company’s executives outlined a plan for salespeople to negatively compare AI products from companies like OpenAI, Google, and Anthropic to its own, according to a new report from Bloomberg. The meeting, billed as a strategy session for the new fiscal year, reportedly leaned heavily on pitching the efficiency and cost-effectiveness of Microsoft’s in-house models against those of its rivals.

“Everyone else is selling parts — we’re selling the full end-to-end system. That’s the story that we all need to get out there and tell in FY27,” Executive Vice President Jay Parikh reportedly told the room.

Executive Vice President Jacob Andreou reportedly went further, delivering a presentation comparing Copilot directly to Anthropic’s chatbot Claude. According to Bloomberg, Andreou noted that, when it came to performance within Microsoft’s office apps, Anthropic’s model was “slower and less accurate, and lacked the proper security integrations,” Bloomberg writes.

TechCrunch has reached out to Microsoft and Anthropic for comment and will update this story if we hear from either outfit.

A company coaching its sales team on how to trash-talk competitors isn’t particularly surprising. What’s more notable is who Microsoft is now targeting — the same companies it has long depended on for the AI models powering its own products.

It’s just the latest move in that direction. A report earlier this month found that Microsoft has been swapping OpenAI and Anthropic’s models out of flagship apps like Word and Excel in favor of its own — a cost-cutting move, according to that report.

There was a time when Microsoft and OpenAI were attached at the hip. The two companies entered into a very unique agreement years ago that saw Microsoft provide capital and compute to OpenAI while allowing Microsoft to enjoy exclusive access to OpenAI’s API and models. The companies amended the partnership in April, dropping the exclusivity clause and clearing OpenAI to sell to Microsoft’s competitors.

That revised relationship may help explain the sales team’s new pitch. Microsoft has been battling a less-than-optimal stock outlook over the past year, as investors question the company’s massive spending on the buildout of its AI business. Talking up how competitive those products actually are is likely an attempt to calm those waters and build confidence in Microsoft’s long-term AI plan.

When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

Lucas is a senior writer at TechCrunch, where he covers artificial intelligence, consumer tech, and startups. He previously covered AI and cybersecurity at Gizmodo. You can contact Lucas by emailing [email protected].

Microsoft (MSFT +2.70%) has been a terrible stock to own so far in 2026; it's down around 20% so far this year. However, I think things will change after July 29, because that's when Microsoft reports earnings for its fiscal 2026's fourth quarter (ended June 30).

I think the bar for Microsoft to report a solid earnings report is relatively low, and if it can keep the status quo from previous earnings reports, it will be perfectly set up to skyrocket for one main reason.

Image source: Microsoft.

Microsoft's stock is cheap Thanks to the sell-off this year, Microsoft's valuation has plummeted. It now trades for about 20 times forward earnings.

MSFT PE Ratio (Forward) data by YCharts

This is uncharted territory for Microsoft, as it has historically traded for about 30 times forward earnings. Should Microsoft report a fantastic earnings report and the market deems it worthy of returning to its normal valuation range, that represents 50% upside in the stock -- something few big tech companies can say. Furthermore, its current price tag is cheaper than the broader market, as measured by the S&P 500, which trades for 21.7 times forward earnings.

For Q4, Wall Street analysts expect revenue growth of 15%, with earnings per share coming in around $4.24. If Microsoft can exceed those expectations, it may be in a perfect situation to soar after earnings, and it may be set up to do just that because its Q3 results were much better than what's expected in Q4.

Last quarter, its revenue rose at an 18% year-over-year pace, with diluted earnings per share increasing 23% year over year to $4.27. The bar isn't all that high for Microsoft, and if it can clear it by a wide margin, the stock could easily deliver double-digit returns following its earnings announcement on July 29.

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One item investors will also be watching for is its capital expenditure guidance for fiscal 2027. The market isn't giving the AI hyperscalers a ton of leash on unnecessary capital expenditures, and with Microsoft spending hundreds of billions on data centers, it's making a huge investment in the AI realm. But if its cloud computing revenue growth rate continues to accelerate, that will satisfy most investors, as there is a tangible return there because others are paying for its cloud usage, rather than Microsoft using it internally.

Those are some of the key items to watch for, but I'm betting Microsoft will be just fine following earnings, and investors who have held the stock throughout the sell-off will be happier in a few weeks after their earnings announcement is complete.

BENSALEM, Pa., July 15, 2026 (GLOBE NEWSWIRE) -- Law Offices of Howard G. Smith reminds investors that class action lawsuits have been filed on behalf of shareholders of the following publicly-traded companies. Investors have until the deadlines listed below to file a lead plaintiff motion.

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

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

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

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

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

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

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

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

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

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

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

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

Alert: Microsoft's AI Promises Propelled MSFT Above $550 Per Share Before Alleged Copilot Deficiencies Surfaced, Costing Investors Billions in Market Value

, /PRNewswire/ -- Levi & Korsinsky, LLP notifies investors in Microsoft Corporation (NASDAQ: MSFT) that a class action has been filed on behalf of shareholders who purchased securities between May 1, 2025 and January 28, 2026. Find out if you qualify to recover losses. You may also contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.

During the Class Period, MSFT shares traded at all-time highs above $550 per share as management touted "best-in-class" AI capabilities and record Microsoft 365 Copilot adoption across 90% of the Fortune 500. The lead plaintiff deadline is August 11, 2026.

How Alleged Misrepresentations Inflated MSFT's Market Price

The securities action asserts that Microsoft's stock price was artificially inflated by a sustained campaign of optimistic statements about the Company's AI products and cloud infrastructure. Throughout the Class Period, executives claimed Copilot was the fastest-growing product in Microsoft 365 history, that usage intensity was doubling quarter over quarter, and that Azure AI services were driving 16 points of cloud revenue growth. These statements allegedly fueled investor demand that pushed MSFT to record valuations.

The complaint contends that behind these public proclamations, the Copilot family of products suffered from significant brand positioning failures, data siloing limitations, computational capacity constraints, and interoperability problems that defendants knew about or recklessly disregarded. When the market began processing the gap between the Company's representations and the actual state of its AI offerings, billions in shareholder value evaporated.

The Azure-OpenAI Revenue Loop and Market Perception

Investors bid MSFT shares higher in part because of management's emphasis on massive AI-related contracts. The lawsuit chronicles how executives highlighted OpenAI's $250 billion Azure services commitment and Anthropic's $30 billion compute capacity agreement as proof of surging demand. The action claims these figures obscured the circular nature of the arrangements: Microsoft invested billions in these same LLM providers, who then committed to spending those dollars back on Microsoft's Azure platform. The filing states this dynamic created an appearance of organic demand growth that the market relied upon when pricing MSFT shares.

Market Repricing After Concealed Problems Emerged

The complaint details how the market ultimately reassessed MSFT's valuation as investors learned that:

Copilot's "record" adoption figures masked deep user experience and interoperability failures that limited real-world productivity gains The Company's AI infrastructure buildout, including plans to double its data center footprint, carried concentration and return-on-investment risks that were downplayed to investors Seat growth was concentrated in lower-ARPU segments like small businesses and frontline workers, undermining the revenue acceleration narrative The multibillion-dollar LLM provider partnerships created circular revenue dependencies rather than the independent demand growth executives described See if you can recover losses from your MSFT investment or call (212) 363-7500.

"When companies fail to disclose material information, shareholders may suffer significant losses. The magnitude of MSFT's market capitalization swing following these revelations underscores how heavily investors relied on management's AI growth narrative," stated Joseph E. Levi, Esq.

Join the Microsoft securities recovery action now or contact Joseph E. Levi, Esq. at (212) 363-7500.

ABOUT LEVI & KORSINSKY, LLP -- Over the past 20 years, Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders. The firm has extensive expertise in complex securities litigation and a team of over 70 employees. For seven consecutive years, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report. The last day to move for lead plaintiff is August 11, 2026.

Frequently Asked Questions About the MSFT Lawsuit

Q: How much did MSFT stock drop? A: Shares traded at all-time highs above $550 per share during the Class Period before declining significantly after the market began processing that Microsoft's AI product claims were allegedly misleading. Investors who purchased shares at artificially inflated prices may be entitled to compensation.

Q: What specific misstatements does the MSFT lawsuit allege? A: The complaint alleges Microsoft made materially false or misleading statements regarding the success, adoption, and performance of its Copilot AI products and the return on investment for its multibillion-dollar AI capital expenditures, while concealing significant technical and organizational problems.

Q: What do MSFT investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible as a class member.

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

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

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

Q: Can I join a different law firm's lawsuit instead? A: Multiple firms often file competing complaints. The court consolidates and appoints a single lead counsel. Contacting Levi & Korsinsky before August 11, 2026 ensures your losses are considered.

CONTACT:\
Levi & Korsinsky, LLP\
Joseph E. Levi, Esq.\
Ed Korsinsky, Esq.\
33 Whitehall Street, 27th Floor\
New York, NY 10004\
[email protected]\
Tel: (212) 363-7500\
Fax: (212) 363-7171

SOURCE Levi & Korsinsky, LLP

Key Takeaways CoreWeave may offer greater AI upside, while Microsoft provides a more diversified growth profile.CRWV is expanding AI infrastructure, with backlog nearing $100 billion and revenue targets rising.Microsoft is growing AI across Azure, Copilot and cloud, but faces higher AI infrastructure spending risks. AI is increasingly gaining traction in the technology sector, creating enormous opportunities for companies that build the infrastructure powering next-generation AI models. While technology giants like Microsoft Corporation (MSFT - Free Report) have emerged as leaders in AI through strategic investments and ecosystem expansion, newer players, such as CoreWeave, Inc. (CRWV - Free Report) , are rapidly gaining attention by providing specialized cloud infrastructure purpose-built for AI workloads.

Per a report from Fortune Business Insights, the global cloud AI market size is anticipated to go from $133.4 billion in 2026 to $780.6 billion by 2034 at a CAGR of 23.8%. For investors, the question is becoming increasingly relevant: Should you invest in the AI giant with diversified earnings or the pure-play AI infrastructure company with explosive growth potential?

Here's a closer look at how CoreWeave and Microsoft compare.

The Case for MSFT StockMicrosoft benefits from a diversified revenue stream across cloud computing, productivity software, enterprise services, gaming and other areas. Its leadership in Azure and extensive AI ecosystem position the company to take advantage of the growing adoption of enterprise AI. Additionally, Microsoft's high recurring software revenue, supported by subscription-based products, generates strong free cash flow and offers a stable foundation for long-term growth.

Microsoft continues to show strong financial results, with revenue and operating income growing at double-digit rates and operating margins reaching 46%. Cloud and AI remain the main growth drivers, with cloud revenue up 29% and AI’s annual recurring revenue more than doubling, backed by strong enterprise demand. The company is investing heavily in AI infrastructure, expanding global data center capacity, launching Maia AI accelerators and Cobalt CPUs, and enhancing deployment efficiency to meet increasing demand. Microsoft also strengthens its AI platform through Azure AI Foundry, first-party AI models and a unified data layer across Fabric, Foundry and Microsoft 365.

Customer adoption continues to grow rapidly, with Microsoft 365 Copilot exceeding 20 million paid seats. GitHub Copilot and Security Copilot are gaining momentum, and enterprise use of AI agents and real-time data is increasing. Management anticipates that AI will support sustained double-digit revenue and operating income growth, driven by a shift to a hybrid subscription and usage-based pricing model. To capitalize on this opportunity, Microsoft plans substantial investments in AI infrastructure, while using hardware innovation and operational efficiencies to sustain healthy long-term margins.

Image Source: Zacks Investment Research

However, Microsoft's Azure faces intense competition from rivals with significant resources and innovation. Rising capital spending raises worries about returns and financial stability, with CapEx hitting $31.9 billion in the third quarter and expected to be over $40 billion in the fourth quarter. The combination of high capital needs, lease obligations and large AI infrastructure costs suggests Microsoft has sacrificed some financial flexibility to fund growth and shareholder payouts. This financial vulnerability provides little room to handle economic or competitive challenges, increasing risks for shareholders.

The Case for CRWV StockCoreWeave has consistently reported triple-digit revenue growth as enterprise AI adoption accelerates. Demand for NVIDIA (NVDA - Free Report) GPUs continues to exceed supply, allowing specialized providers like CoreWeave to maintain exceptionally high utilization rates. Long-term contracts with leading AI companies also provide significant revenue visibility. It became the first AI cloud provider to complete system-level validation of NVDA Vera Rubin NVL72, reaffirming its leadership in next-generation AI infrastructure. In January, NVIDIA increased its investment in CoreWeave to $2 billion.

CoreWeave continues to benefit from strong AI infrastructure demand, with its backlog nearing $100 billion, active power exceeding 1 GW and more than 3.5 GW under contract. AI workloads are mainly shifting toward inference, driving customer diversification across top AI labs, hyperscalers and enterprises, while more than 10 customers have committed over $1 billion each. The company is quickly expanding its infrastructure and platform capabilities through new data centers, self-built sites, enhanced cloud services and cross-cloud solutions.

Its partnership with NVIDIA has been strengthened through software validation, while diversified suppliers and secured component procurement support future capacity growth. CoreWeave has also bolstered its financial position by raising significant debt and equity capital, reducing its cost of debt and reaffirming its revenue outlook. Management expects revenue to surpass $18 billion in 2026 and $30 billion in 2027, driven by strong demand, growing AI inference workloads and a long-term goal of more than 8 gigawatts of active power by 2030.

Image Source: Zacks Investment Research

Nonetheless, CoreWeave faces several risks, including its heavy reliance on continued AI infrastructure spending and substantial capital expenditure requirements to support rapid expansion. The company also has significant customer concentration, making it dependent on a relatively small number of large clients. In addition, CRWV’s stock is likely to remain highly volatile given its high-growth profile; while intensifying competition from hyperscalers and other cloud providers could pressure its growth and margins over time.

CRWV & MSFT’s Share PerformanceYear to date, CRWV has surged 11.7% while MSFT is down 20.4%.

Image Source: Zacks Investment Research

Valuation ConsiderationsCoreWeave commands a premium valuation because investors expect years of extraordinary expansion. Microsoft trades at a premium relative to the broader market but remains supported by durable earnings, robust cash flow and a diversified business model.

In terms of Price/Book, CRWV shares are trading at 7.52X, marginally above MSFT’s 6.9X.

Image Source: Zacks Investment Research

How Do Zacks Estimates Compare for CRWV & MSFT?The Zacks Consensus Estimate for CoreWeave’s earnings for 2026 has been trimmed down 0.6% over the past 60 days.

Image Source: Zacks Investment Research

For MSFT, there has been zero revision.

Image Source: Zacks Investment Research

CRWV or MSFT: Which Stock Offers More Upside?Both companies are well-positioned to benefit from the AI boom, but they target different types of investors.

If AI infrastructure demand continues to grow at today's rate, CoreWeave has significantly more room for expansion than Microsoft. The company operates with a much smaller revenue base, meaning each new customer and data center can boost growth. Microsoft offers a more balanced investment profile. Its AI initiatives are strengthening almost every existing business, while Azure continues to capture enterprise cloud demand. Even if AI spending slows down, Microsoft's software, cloud, productivity and security businesses provide steady earnings growth. For investors looking for maximum exposure to AI infrastructure growth, CoreWeave might offer greater upside potential over the next few years.

CRWV at present carries a Zacks Rank #2 (Buy) while MSFT has a Zacks Rank #3 (Hold). Consequently, in terms of Zacks Rank, CRWV seems to be a better pick at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

New York, New York--(Newsfile Corp. - July 15, 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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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/301530

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Two Wall Street firms trimmed their price targets on Microsoft (NASDAQ:MSFT | MSFT Price Prediction) ahead of the software giant’s fiscal Q4 report, but neither pulled its bullish rating. Citi lowered its target to $570 from $620 while keeping a Buy rating, and Mizuho analyst Gregg Moskowitz cut his target to $490 from $515 while maintaining an Outperform rating. The message to long-term investors: Wall Street is getting more cautious on price and capex digestion without losing conviction on the underlying business.

Ticker Company Firm Action Old Rating New Rating Old Target New Target MSFT Microsoft Citi Price target cut Buy Buy $620 $570 MSFT Microsoft Mizuho Price target cut Outperform Outperform $515 $490 The Analyst’s Case Citi stays positive after constructive channel checks on Copilot and views Microsoft as increasingly well positioned for optimizing token spend and AI efficiency. The firm expects strong Q4 results but flags that investors will need to digest higher capex spending in Q1.

Mizuho’s cut came as part of a broader large-cap software Q4 earnings preview. Moskowitz described channel checks as good, public cloud data points as strong, and AI adoption as robust. He noted that SaaS remains resilient, but multiples are pressured by investor concerns about AI-led disruption. The common thread is capex intensity, the same concern that has weighed on the Microsoft stock story for months.

Company Snapshot Microsoft’s most recent quarter reinforced the bull case. Revenue reached $82.89 billion, up 18.3% year over year, with EPS of $4.27 beating the consensus of $4.09. Azure and other cloud services grew 40%, and CEO Satya Nadella noted the AI business surpassed an annual revenue run rate of $37 billion, up 123% year-over-year. Commercial remaining performance obligations sit at $627 billion, up 99%.

The catch is spending. Capital expenditures hit $30.88 billion in Q3, an 84.4% year-over-year increase, with Forbes estimating roughly $190 billion in capex for 2026.

Why the Move Matters Now Microsoft shares last traded at $397.05, with the Microsoft stock down 20.05% year to date and 22.86% over the past year. Microsoft reports fiscal Q4 2026 results on July 29, after market close. With both firms flagging capex digestion as the near-term overhang, guidance commentary matters as much as the headline numbers. Analyst consensus still points to 54 Buy ratings, 3 Hold, and 0 Sell (a report like 7 Stocks Powering the AI Boom puts this AI infrastructure debate in wider context).

What It Means for Your Portfolio The analyst price target cuts are a recalibration, not a rejection. Both firms concede that Copilot uptake, Azure momentum, and enterprise AI adoption are tracking well. Their caution centers on when the return on $30.88 billion quarterly capex shows up in reported earnings. For retirement-focused investors, that translates to a familiar tradeoff: durable franchise, sizable long-term option value in AI, and a stock that may trade choppily until capex intensity peaks. The July 29 fiscal Q4 report is the next stress test for the thesis.

Meet America's Newest $1b Unicorn (Sponsor) A US startup just passed a $1 billion private valuation, joining billion-dollar private companies like OpenAI and ByteDance. Unlike those other unicorns, you can invest in EnergyX right now; but only until July 16.

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Contact [email protected] for any questions or corrections.

Investors should brace themselves for intensifying AI spending in fiscal 2027, according to Citi Research.

Microsoft becomes first announced hyperscale cloud provider to deploy 3M Expanded Beam Optical (EBO) technology

3M to use Microsoft AI and digital capabilities to advance enterprise transformation across key functions

, /PRNewswire/ -- 3M (NYSE: MMM) and Microsoft (NASDAQ: MSFT) today announced a strategic partnership focused on AI data center infrastructure and enterprise transformation. Microsoft's Azure Cloud and AI Infrastructure will become the first announced hyperscale cloud provider to deploy 3M's Expanded Beam Optical (EBO) technology. 3M will also use Microsoft's AI and digital platforms as part of its enterprise transformation across key business functions.

3M and Microsoft announce a strategic partnership to advance AI data center infrastructure and enterprise transformation. Together, the companies will combine Microsoft's digital and hyperscale infrastructure with 3M's materials science and precision manufacturing to accelerate AI adoption and strengthen the physical networks required for the growth of cloud and AI workloads.

Innovating datacenter infrastructure for the AI era
As Microsoft continues to advance high-performance, efficient and sustainable infrastructure for enterprise and generative AI workloads, it will deploy 3M's proprietary EBO technology in Azure data centers.

By using an expanded beam optical interface instead of the direct contact required in traditional connectors, EBO technology is designed to make fiber connections faster to install, more tolerant of contamination and easier to maintain. The technology will help Microsoft reduce the need for frequent cleaning and inspection while supporting reliable optical performance in dense, high-volume deployment environments.

Microsoft's early use of EBO technology has shown the potential to reduce network deployment timelines in certain environments. The technology has also demonstrated strong signal performance in live data center conditions, where dust exposure and routine handling are inherent to installation and maintenance.

3M is scaling production of its EBO technology to meet accelerating demand from hyperscalers and data center operators building the infrastructure required for AI. Building on decades of materials science and precision-manufacturing expertise, 3M has advanced single-mode expanded beam optical technology for high-volume data center applications, supporting disciplined commercialization and broader adoption across the data center ecosystem. 3M helped establish the EBO Multi-Source Agreement (MSA) to support standardization and broader industry adoption of EBO technology.

"At Microsoft, we're redefining the foundation of cloud and AI infrastructure — combining our own innovations with advances from partners like 3M to build datacenters that are faster to deploy, more resilient and ready for the scale of AI," said Cliff Henson, corporate vice president, Cloud Supply Chain, Microsoft. "3M's EBO solution will help unlock new levels of performance, reliability and efficiency to ensure customers can run their cloud and AI workloads on a trusted, sustainable and advanced environment."  

Enterprise AI transformation
3M will deploy Microsoft's AI and digital capabilities in key areas of its enterprise transformation roadmap, including customer service, finance, sales and marketing. These efforts will help simplify processes, improve decision-making, strengthen customer experiences and enable greater employee productivity.

A specific example involves the newly launched Microsoft Frontier Company deploying engineers to help 3M's Global Business Services team automate the way it manages customer orders. Both companies are collaborating on an AI agent-driven workflow to assist with credit checks, delinquency assessments and system updates, with human-in-the-loop controls and a custom monitoring dashboard for real-time visibility and approvals. This solution is expected to significantly reduce manual effort, improve process speed and consistency, and accelerate cash flow, freeing 3M staff for higher-value work and enabling scalable, auditable operation. 

"At 3M, we view AI as a powerful tool that can accelerate growth, improve customer experiences and help our teams work more effectively," said Jon Van Wyck, executive vice president and chief strategy officer, 3M. "Our collaboration with Microsoft supports that vision through targeted optimization opportunities for our enterprise while advancing the infrastructure needed to power the future of AI. We are excited to deepen our partnership and develop practical solutions that can create mutual value."

Building the future through science and technology
Microsoft and 3M intend to build on this partnership through continued technical collaboration, bench-to-bench engagement between engineering and commercial teams, and joint innovation opportunities across Microsoft's data center and device ecosystem, with a focus on areas where 3M's materials science, optical connectivity and manufacturing capabilities can help address evolving requirements for reliability, deployment speed, density and long-term scalability.

About 3M 
3M (NYSE: MMM) is focused on transforming industries around the world by applying science and creating innovative, customer-focused solutions. Our multi-disciplinary team is working to solve tough customer problems by leveraging diverse technology platforms, differentiated capabilities, global footprint, and operational excellence. Discover how 3M is shaping the future at 3M.com/news. 

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

SOURCE 3M Company

NEW YORK, July 14, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Microsoft Corporation (“Microsoft” or the “Company”) (NASDAQ: MSFT). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased. 

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

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

[Click here for information about joining the class action]

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

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

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

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

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

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

Attorney advertising. Prior results do not guarantee similar outcomes.  

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

In the latest trading session, Microsoft (MSFT - Free Report) closed at $384.93, marking a -1.55% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.38% for the day. Meanwhile, the Dow experienced a rise of 0.02%, and the technology-dominated Nasdaq saw an increase of 0.9%.

The stock of software maker has fallen by 2.19% in the past month, lagging the Computer and Technology sector's loss of 1.5% and the S&P 500's gain of 1.27%.

Analysts and investors alike will be keeping a close eye on the performance of Microsoft in its upcoming earnings disclosure. The company's earnings report is set to go public on July 29, 2026. The company is expected to report EPS of $4.21, up 15.34% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $87.44 billion, indicating a 14.39% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $17.33 per share and a revenue of $329.26 billion, signifying shifts of +27.05% and +16.87%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for Microsoft. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. Microsoft presently features a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Microsoft has a Forward P/E ratio of 20.27 right now. This denotes a premium relative to the industry average Forward P/E of 16.31.

It is also worth noting that MSFT currently has a PEG ratio of 1.19. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 1.24.

The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 103, positioning it in the top 42% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

New York, New York--(Newsfile Corp. - July 14, 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/.

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

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/305122

Source: The Rosen Law Firm PA

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Microsoft (MSFT - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Over the past month, shares of this software maker have returned -2.2%, compared to the Zacks S&P 500 composite's +1.3% change. During this period, the Zacks Computer - Software industry, which Microsoft falls in, has lost 3.5%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

For the current quarter, Microsoft is expected to post earnings of $4.21 per share, indicating a change of +15.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.2% over the last 30 days.

The consensus earnings estimate of $17.33 for the current fiscal year indicates a year-over-year change of +27.1%. This estimate has remained unchanged over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $19.29 indicates a change of +11.3% from what Microsoft is expected to report a year ago. Over the past month, the estimate has remained unchanged.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Microsoft.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of Microsoft, the consensus sales estimate of $87.44 billion for the current quarter points to a year-over-year change of +14.4%. The $329.26 billion and $381.62 billion estimates for the current and next fiscal years indicate changes of +16.9% and +15.9%, respectively.

Last Reported Results and Surprise HistoryMicrosoft reported revenues of $82.89 billion in the last reported quarter, representing a year-over-year change of +18.3%. EPS of $4.27 for the same period compares with $3.46 a year ago.

Compared to the Zacks Consensus Estimate of $81.4 billion, the reported revenues represent a surprise of +1.83%. The EPS surprise was +4.91%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Microsoft is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Microsoft. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

HomeStock IdeasLong IdeasTech 

SummaryMicrosoft (MSFT) remains highly attractive on a risk-reward basis despite recent S&P 500 underperformance. MSFT trades at 20x earnings, a 20% discount to the sector median, yet offers superior growth and premium margins. I see no structural concerns and maintain a Strong Buy rating for MSFT at current levels. MSFT's brand strength and competitive moat further justify a valuation premium over peers. Vertigo3d/E+ via Getty Images

Honestly, Microsoft (MSFT) at the moment remains one of the most interesting names in terms of risk to reward ratio in my opinion. Clearly, my bullish thesis hasn't played out the way I thought it would

2.12K Followers

Analyst’s Disclosure: I/we have a beneficial long position in the shares of MSFT, NVDA, AMZN, AAPL, META either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Key Takeaways Alphabet, Microsoft, Amazon and Ciena are positioned to benefit from expanding cloud and AI demand.Google Cloud, Azure and AWS are scaling infrastructure, services and AI capabilities worldwide.Ciena's WaveLogic and Blue Planet tools support bandwidth growth, automation and AI-driven networks. An updated edition of the May 21, 2026, article.

Cloud computing has emerged as one of the most “hot and happening” long-term growth drivers in the technology industry, enabling businesses to operate more efficiently, innovate faster and strengthen their competitive position. Its growing adoption across industries has been fueled by key advantages such as greater flexibility, scalability, accessibility and cost efficiency. Powered by virtualization technology, cloud computing has accelerated digital transformation by allowing organizations to access, manage and store data over the Internet without depending on physical servers or complex on-premises IT infrastructure.

By enabling multiple users to share computing resources through web browsers or dedicated applications connected to cloud-based platforms, it optimizes resource utilization and improves operational efficiency. Additionally, cloud computing has made seamless omnichannel customer engagement more accessible while significantly reducing infrastructure and operating costs.

Cloud computing is an attractive theme for investors seeking exposure to blue-chip tech firms. This has made cloud computing firms, such as Alphabet Inc. (GOOGL - Free Report) , Microsoft Corporation (MSFT - Free Report) , Amazon.com, Inc. (AMZN - Free Report) and Ciena Corporation (CIEN - Free Report) , indispensable to any investment portfolio. But before delving into these prized possessions, let us examine a little more why organizations are increasingly adopting cloud computing.

Based on a pay-per-use pricing model, enterprises only pay for the computing resources they use. This has helped business enterprises reduce operating costs for maintaining on-site data centers and deploying IT experts to manage the infrastructure, making it a highly cost-effective solution. With easy access to a plethora of innovative technologies, cloud computing increases productivity with greater agility and flexibility, and improves scalability with higher economies of scale. Moreover, cloud computing services are delivered over a highly secure network with low latency for applications and data backup facilities for improved reliability.

Cloud computing services fall into four broad categories – infrastructure as a service (IaaS), platform as a service (PaaS) and serverless and software as a service (SaaS) – each offering different levels of control, flexibility and management options to business enterprises. Cloud computing, which relies heavily on virtualization and automation technologies, provides the requisite infrastructure for AI (artificial intelligence) and machine learning (ML) workloads. It delivers powerful computing abilities to process and analyze data, creating an ideal platform for Big Data management.

Per Grand View Research, the global cloud computing market size is expected to swell to $3,349.6 billion by 2033 from $943.7 billion in 2025 at a CAGR of 16% with a variety of capabilities across multiple industries. These include diverse use cases such as improved patient monitoring and outcomes in healthcare, personalized financial management and predictive spending, immersive learning in education, superior inventory management in retail and predictive maintenance and better supply chain management in the manufacturing sector.

If you intend to capitalize on this buzzing trend, our Cloud Computing Thematic Investing Screen could make it easy to identify high-potential stocks in this domain at any given time, just like the four mentioned above. By leveraging advanced tools, our thematic screens identify companies shaping the future, making it easier to benefit from emerging trends.

Ready to uncover more transformative thematic investment ideas? Explore 36 cutting-edge investment themes with Zacks Thematic Investing Screens and discover your next big opportunity.

Key Cloud Computing Stocks to Bet OnAlphabet has been growing rapidly in the booming cloud-computing market. Over the last few years, the company has evolved from primarily being a search engine provider to a leading provider of cloud computing technology. Google Cloud is one of the key catalysts behind the company’s growth, driven by its strengthening cloud service offerings.

The solid adoption of the Google Cloud Platform and Google Workspace and continued investments in infrastructure, security, data management, analytics and AI have helped Google to expand its cloud footprint worldwide. The increasing number of cloud regions and availability zones globally has been a hallmark of Google Cloud. Currently, Google Cloud has 43 cloud regions, 130 availability zones and more than 200 network edge locations across more than 200 countries. Google Cloud is considered the third-largest cloud player among numerous cloud providers worldwide.

Google Cloud is benefiting from Alphabet’s years of investments in AI infrastructure, custom silicon and enterprise software that are beginning to translate into substantial financial returns. Alphabet’s growing GenAI capabilities and significant investments in cloud computing are potential catalysts for the future amid stiff competition in the cloud space and increasing regulatory headwinds. It has a VGM Score of B. Alphabet sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Microsoft is one of the most prominent public cloud providers that delivers a wide variety of IaaS and PaaS solutions at scale. Microsoft Azure, its cloud computing platform, allows users to build, run and scale applications in the cloud. It offers a variety of services, including storage, networking, analytics and AI.

Microsoft has doubled down on the cloud computing opportunity. Azure’s increased availability in more than 60 announced regions globally has strengthened Microsoft's competitive position in the cloud computing market. Operating through a vast network of global data centers that ensure high availability and reliability for applications, Azure offers seamless access to all the services included in the portal once customers subscribe to it. Subscribers can use these services to create cloud-based resources, such as virtual machines (VMs) and databases, which can then be assembled into running environments used to host workloads and store data.

As Microsoft continues to push the boundaries of networking technology, it aims to create innovative, resilient and secure solutions that enable businesses to leverage AI and the cloud to their fullest potential. This Zacks Rank #3 (Hold) company is investing heavily in AI-powered cloud services, integrating Azure OpenAI Service, Copilot and ML into various cloud solutions, making AI a central feature of Azure to empower organizations to manage their applications with greater confidence and efficiency. It has a VGM Score of B.

Amazon enjoys a leading position in the cloud computing market, particularly in the IaaS space, thanks to Amazon Web Services (“AWS”), which is one of its high-margin-generating businesses. The expanding customer base of AWS, driven by its strengthening cloud offerings, will continue to aid Amazon's dominance in the global cloud space.

AWS is the world’s most comprehensive and broadly adopted on-demand cloud computing platform, offering more than 200 fully featured services from data centers globally. Millions of customers, including the fastest-growing startups, largest enterprises and leading government agencies, are using AWS to lower costs, become more agile and innovate faster. It reportedly offers the widest variety of databases that are purpose-built for different types of applications to enable subscribers to choose the right tool for the job.

Amazon aims to extend AWS’ AI and ML capabilities to facilitate improved decision-making. This Zacks Rank #2 (Buy) company intends to expand its global infrastructure for faster and more reliable service with low latency and maximum availability. From cloud-native applications and AI-driven solutions to edge computing and sustainability initiatives, AWS is likely to push the limits in the realm of cloud computing technology.

Ciena has emerged as a key beneficiary of the cloud computing boom. The company’s advanced optical networking and automation solutions are witnessing strong demand as hyperscalers and telecom operators continue expanding data center infrastructure to support AI workloads and rising global data traffic. Higher demand for bandwidth and adoption of cloud architectures for generative AI applications and AI model training remain key growth drivers, as the company expects its profitability to improve on a balanced mix of new and existing customers.

Ciena is well-positioned to capitalize on the secular growth trend through its industry-leading coherent optical technology portfolio, particularly its WaveLogic platform. The company’s latest WaveLogic 6 Extreme solution supports transmission speeds of up to 1.6 terabits per second per wavelength, enabling cloud providers to scale network capacity efficiently while lowering power consumption and operating costs by maximizing existing fiber infrastructure without the need for extensive new fiber deployment.

Ciena’s portfolio, including WaveLogic, RLS, Navigator and Interconnect Solutions, remains a recognized industry standard. The company is also strengthening its position through software-driven networking solutions. Its Blue Planet automation platform helps operators simplify network management through AI-driven orchestration, analytics and automation capabilities. This Zacks Rank #1 company’s technological leadership, expanding hyperscaler relationships and growing software capabilities position it favorably within the rapidly evolving AI infrastructure ecosystem.

Microsoft shares are retreating from recent levels. Why is MSFT stock falling? The LayoffsReplacing OpenAI With Its Own ModelsAnalyst Consensus & Recent ActionsThe stock carries a Buy rating with an average price target of $552.96. Recent analyst moves include:

Argus Research: Buy (Lowers Target to $510.00) (July 10) BMO Capital: Outperform (Raises Target to $515.00) (July 7) Wolfe Research: Outperform (Lowers Target to $525.00) (July 6) Looking Ahead to EarningsMicrosoft is expected to report fourth-quarter earnings on July 29. Analysts estimate earnings per share of 4.23, along with revenue of $87.61 billion.

Microsoft Shares Edge LowerMSFT Price Action: At the time of publication, Microsoft shares are trading 3.07% lower at $379.00, according to data from Benzinga Pro.

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A securities fraud class action lawsuit has been filed on behalf of Microsoft investors after its stock plummeted 10% because Microsoft allegedly misled investors regarding its AI chatbot Copilot and cloud computing platform Azure.

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

Why is Microsoft Being Sued for Securities Fraud?

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

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

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

Why did Microsoft's Stock Drop?

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

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

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

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

What Can You Do?

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

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

Submit your information by visiting:

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

Why Bleichmar Fonti & Auld LLP?

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

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

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

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

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

Attorney advertising. Past results do not guarantee future outcomes.

SOURCE Bleichmar Fonti & Auld LLP

Big tech hyperscalers like Amazon, Alphabet, Microsoft, and Meta are positioned for significant free cash flow growth as CapEx investments begin to yield returns post-2028. Semiconductor and memory stocks have led the market, but expectations are now high, making risk-to-reward more attractive in hyperscalers and select software names.

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OpenAI CEO Sam Altman has struck big deals with Microsoft and Apple. Both of them have ended poorly. Kevin Dietsch/Getty Images A year ago, OpenAI seemed like it had an untouchable lead in the AI race.

It was by far the dominant AI platform for consumers. Competitors like Meta were scrambling — and spending a gazillion dollars on new hires — to catch up. Sam Altman had enough cash, and clout, to hire famed Apple designer Jony Ive to build him a mystery device meant to take on the iPhone Ive helped build.

Now the narrative has turned: OpenAI is now scrambling to catch up to rival Anthropic, which had focused on enterprise accounts instead of selling to individuals. Altman seems to constantly be reorganizing his leadership structure, and then reorganizing again. And Apple is suing OpenAI, claiming that Altman's company poached its employees and stole its secrets.

It's an open question whether OpenAI erred by focusing early on consumers instead of companies. Or whether it has the right executives in the right roles. You need time to see how all of that shakes out. (I've asked OpenAI if they want to weigh in on any of this.)

But we can focus on the Apple lawsuit right now. Because what's interesting to me isn't just the spectacle of one of the world's most powerful companies suing one of the world's most valuable startups (and, possibly dragging its legendary former employee into court as well, though Ive hasn't been named in the suit).

It's that this is the second time OpenAI has aligned itself with a leading tech giant, and ended up in a messy breakup.

That first rift was with Microsoft, which at one point appeared to be OpenAI's most crucial Big Tech ally. Microsoft first invested $1 billion in OpenAI way back in 2019, and then made a much bigger commitment in 2023, months after OpenAI ushered in a new era of AI with ChatGPT. When Altman was temporarily fired by his board later that year, Microsoft CEO Satya Nadella provided crucial backing for Altman in his negotiations to take back his job.

But by April of this year, Microsoft and OpenAI had more or less broken up. They still have a deal, but the exclusive relationship they'd forged a few years earlier is now formally non-exclusive. Of note: That deal came weeks after a report that Microsoft was considering suing OpenAI for allegedly breaching their existing contract.

The Apple/OpenAI story isn't a carbon copy of the Microsoft/OpenAI story, but it rhymes.

In 2024, Apple blessed OpenAI's status as the dominant AI company by giving it pole position on the iPhone: Apple wasn't forcing its users to use ChatGPT, but it was going to integrate the chatbot into its phone software. It seemed like a win for both companies.

Then OpenAI bought Ive's company for $6.5 billion, and announced plans to build a mystery device that isn't supposed to be an iPhone but is also clearly meant to compete with the iPhone in some way. And by May of this year, OpenAI executives were so disappointed with their Apple tie-up that they were reportedly considering suing Tim Cook's company for breach of contract.

Instead, Apple is suing OpenAI.

I don't have an opinion about the merits of Apple's case. So far, we only have Apple's (preliminary) side of the story. And there are plenty of observers, including my colleague Alistair Barr, who aren't particularly sympathetic to Apple.

It's also not the first time Apple has used the court system to fight a would-be iPhone challenger: While it didn't sue Google directly, in 2011 it did sue Samsung, which was using Google's Android software to build an iPhone rival.

But I think it's remarkable that OpenAI has struck two very important alliances with Big Tech giants, and both of them have ended in acrimony.

A seen-it-all perspective would be to argue that fighting with Big Tech companies is a sign that you may be a Big Tech company yourself. And that all of these guys have enormous resources, and lawsuits take forever to play out, and by the time they do, the world may have changed so radically that the initial fight becomes pointless. We're all adults here, let's move on.

But if you're a Big Tech executive who's working with OpenAI, or considering it, you may have already had concerns about the company's leadership. This week's news may give you even more reasons to fret.

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Peter Kafka You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

Peter covers media and technology for Business Insider; previously he has worked at Vox, Recode, AllThingsD, and Forbes. He was also the first hire at Silicon Alley Insider, Business Insider's predecessor. 

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