Microsoft (MSFT +2.02%) is having an uncharacteristically bad year thus far in 2026. Entering trading this week, it's down around 20% as the market has been bearish on software stocks as a whole, related to concerns about artificial intelligence (AI). Rightly or wrongly, Microsoft's stock has struggled to turn things around.
Later this month, however, on July 29, the company reports its all-important earnings numbers. They will be particularly crucial as they will also be its year-end numbers, and its guidance for the year ahead could be of most importance to investors, as it may offer proof that the business isn't in as bad a shape as its recent stock performance might suggest.
While Microsoft's stock isn't trading at its 52-week low anymore, its valuation remains modest. Is now a good time to buy the tech stock, before it posts its latest numbers?
Image source: Getty Images.
Microsoft's track record hasn't been good of late When a company releases its latest earnings numbers, it can have a significant impact on its share price. Unfortunately, in Microsoft's case, the last three times it posted earnings, the stock would proceed to fall in value, sometimes sharply.
MSFT data by YCharts
While this might seem bad, expectations may also be a bit lighter for the business going into the upcoming earnings release, given how much negativity may be priced in at this stage. Recently, Microsoft also announced significant layoffs and a "reset" for its Xbox business amid underwhelming results. Between AI-related concerns, worries of cloud business Azure slowing down, and now an Xbox turnaround, there are an increasing number of things that investors will be watching for when Microsoft reports its latest earnings numbers this month.
Why Microsoft stock still looks worth buying, despite the uncertainty Buying a stock based on how it might do when it releases earnings is dangerous and risky. A company can post strong numbers, and there may still be something that the market didn't like about the guidance or some commentary that came out. The market can be fickle that way. And just because the stock has a good or bad track record after earnings in the past doesn't mean that trend will continue.
Today's Change
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Investing based on fundamentals and focusing on a long-term outlook is going to yield safer results for investors than looking at just the short term. Whether or not Microsoft beats expectations for the current quarter is irrelevant. What matters is that with a reasonable valuation (the stock trades at 23 times its trailing earnings), a robust business, and promising growth opportunities, Microsoft can make for a fantastic stock to buy right now.
LOS ANGELES, July 13, 2026 (GLOBE NEWSWIRE) -- Glancy Prongay Wolke & Rotter LLP reminds investors of the upcoming August 11, 2026 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired Microsoft Corporation (“Microsoft” or the “Company”) (NASDAQ: MSFT) common stock between May 1, 2025 and January 28, 2026, inclusive (the “Class Period”).
IF YOU SUFFERED A LOSS ON YOUR MICROSOFT INVESTMENTS, CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS UNDER THE FEDERAL SECURITIES LAWS.
What Happened?
On January 28, 2026, Microsoft announced disappointing results for its second quarter of fiscal 2026, revealing that growth of its cloud computing platform, Azure, had slowed suddenly and fallen below analyst expectations due primarily to computational capacity constraints, as the Company had diverted central processing unit and graphics processing unit capacity to applications for its generative AI chatbot, Copilot, and AI-related research and development. The Company also revealed that its capital expenditures had increased to $37.5 billion during the quarter, causing the Company’s capital expenditures for the first six months of fiscal 2026 to expand to $72.4 billion compared to $88.2 billion for the entirety of fiscal 2025, largely due to AI-related research and development and Copilot development and capacity buildout costs. Additionally, Microsoft disclosed that the amount of paying users of Copilot was well below analyst estimates.
On this news, Microsoft’s stock price fell $48.13, or 9.99%, to close at $433.50 per share on January 29, 2026, thereby injuring investors.
What Is The Lawsuit About?
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, 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.
If you purchased or otherwise acquired Microsoft common stock during the Class Period, you may move the Court no later than August 11, 2026 to request appointment as lead plaintiff in this putative class action lawsuit.
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.
NEW YORK, July 13, 2026 (GLOBE NEWSWIRE) -- Levi & Korsinsky, LLP announces that a securities class action has been filed against Microsoft Corporation (NASDAQ: MSFT).
YOU MAY BE AFFECTED IF YOU:
Purchased MSFT stock between May 1, 2025, and January 28, 2026Lost money on your Microsoft investment Submit your information to recover losses or contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.
Microsoft shares traded above $550 during the Class Period as executives repeatedly touted Copilot as "best-in-class" with accelerating adoption. When concealed problems surfaced, investors who purchased at artificially inflated prices suffered significant losses. The lead plaintiff deadline is August 11, 2026.
What They Allegedly Knew Before Shareholders Did
The securities action alleges that while Microsoft's most senior officers were publicly celebrating record Copilot seat additions and claiming "best-in-class" AI capabilities, the Company's AI product suite was experiencing severe internal problems that were never disclosed to investors:
Brand positioning confusion across multiple Copilot versions with different features, names, and use cases left enterprise customers unable to distinguish productsSignificant data siloing prevented Copilot from accessing enterprise information across platforms, undermining the "Work IQ" advantage executives publicly promotedComputational capacity constraints limited Copilot's ability to deliver the agentic workflows and deep reasoning capabilities described at investor conferencesOrganizational dysfunction between teams responsible for different Copilot products created interoperability failures that degraded the user experienceThe circularity of multibillion-dollar arrangements with Open AI (250 billion Azure commitment) and Anthropic (30 billion compute commitment) masked concentration risk rather than demonstrating genuine market demand
The Red Flags That Emerged
The complaint chronicles a pattern where public statements grew increasingly aggressive even as internal problems allegedly intensified. In September 2025, management claimed "70% of the Fortune 500" used Copilot "in a pretty extensive way." By October 2025, that figure was revised upward to "90% of the Fortune 500." The action contends these adoption metrics obscured the reality that usage intensity, retention, and actual enterprise value delivery were falling short of what investors were led to believe.
Meanwhile, the Company announced plans to increase total AI capacity by 80% and roughly double its data center footprint over two years. The lawsuit maintains these massive capital commitments were presented as evidence of demand when they actually reflected supply-side build-out whose returns were far less certain than represented.
Inside Knowledge vs. Public Statements
As set forth in the complaint, each individual defendant occupied a position with direct visibility into Copilot's operational performance. The action alleges they were privy to proprietary information about usage metrics, customer feedback, product deficiencies, and competitive positioning that contradicted their optimistic public statements. Despite this alleged knowledge, they continued to describe Copilot's trajectory in superlative terms at earnings calls, investor conferences, and the Company's Annual Shareholders Meeting.
"The timeline raises important questions about when certain risks were known internally versus when they were disclosed to the investing public," stated Joseph E. Levi, Esq.
Act now to protect your rights or call (212) 363-7500.
ABOUT THE FIRM — Levi & Korsinsky represents investors in securities class actions nationwide, with a track record of recovering hundreds of millions for shareholders harmed by alleged corporate concealment. Ranked among ISS Top 50 for seven consecutive years. Lead plaintiff applications must be submitted by August 11, 2026.
Frequently Asked Questions About the MSFT Lawsuit
Q: When did Microsoft allegedly mislead investors? A: The class period runs from May 1, 2025 to January 28, 2026. The alleged fraud was revealed through corrective disclosures causing significant stock decline.
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 returns on its multibillion-dollar AI investments during the class period. When the true state was revealed, the stock price declined sharply.
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: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. You submit a claim form to receive your portion of recovery.
Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
Q: What if I missed the lead plaintiff deadline? A: The deadline applies only to investors seeking lead plaintiff appointment. Class members who miss it can still participate in any settlement or recovery.
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
by Kurt Schlosser on Jul 13, 2026 at 8:55 amJuly 13, 2026 at 8:55 am
The lifelike avatar of President Theodore Roosevelt, which relies on artificial intelligence to answer visitors’ questions, at the Theodore Roosevelt Presidential Library in Medora, N.D. (Theodore Roosevelt Presidential Library Photo via Microsoft) “Speak softly and carry a big prompt.”
That’s a bit of a hallucination of Theodore Roosevelt’s famed ideology, but a digital version of the 26th president of the United States is definitely worth talking to thanks to Microsoft technology.
With the opening of the new Theodore Roosevelt Presidential Library in Medora, N.D., earlier this month, visitors can interact with a lifelike, AI-powered avatar of Roosevelt and ask questions about his life, leadership and legacy.
The exhibit has attracted visits from President Trump — separated from Roosevelt by 125 years — and presidential historian Doris Kearns Goodwin, who accompanied Microsoft President Brad Smith.
“Who better to put our avatar to the test than American historian Doris Kearns Goodwin,” Smith wrote on LinkedIn on Sunday, where he shared a video of a clearly giddy Goodwin interacting with the Roosevelt avatar.
“I’ve been wanting to meet you for such a long time,” Goodwin said. “I feel like I’ve lived with you for 10 years of my life when I wrote a first book about you.”
AI Roosevelt answered a few questions from Goodwin thanks to Box 1, the knowledge base backbone of the museum, powered by technology Microsoft helped create. According to a July 1 Microsoft blog post, the system is loaded with hundreds of thousands of archival documents, and AI is used to “organize, enrich and reconstruct fragmented materials into searchable, contextualized historical records.”
Box 1 and AI also power The Campfire Reading Room, a digital research tool that anyone anywhere in the world can use to search through Roosevelt’s writings, letters, images and historical materials.
Microsoft donated much of its work with the library through its AI for Good Lab. The company said it plans to release a paper documenting exactly how the technology works and to open source the software used in the project.
As technology evolves, the library will evolve with it, Microsoft said. When more documents are added to Box 1 or as generative AI improves, the Roosevelt avatar will automatically update with the additional context.
The goal is to leverage AI to help the institution speak directly to future generations.
“That’s why we call it a living library,” said Laura Hoffman, senior director of the AI for Good Lab. “One of the most challenging things for cultural institutions is to continue to keep their experiences feeling relevant and fresh. This is what’s great about AI technology: It will continue to get better and better.”
New York, New York--(Newsfile Corp. - July 13, 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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Prior results do not guarantee similar outcomes.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/301529
Source: Bronstein, Gewirtz & Grossman, LLC
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From Ballmer’s Shadow to a Cloud-and-AI Empire When Satya Nadella took over as CEO on February 4, 2014, Microsoft was still viewed as a Windows-and-Office licensing dinosaur. Microsoft (NASDAQ:MSFT | MSFT Price Prediction) traded near $30.03 on a split-adjusted basis that day. Today, it anchors the artificial intelligence (AI) buildout.
Nadella pivoted the culture, bet the balance sheet on Azure, moved Office to a Microsoft 365 subscription, and bought LinkedIn, GitHub, and Activision Blizzard. The OpenAI partnership, seeded with $1 billion in 2019, was restructured to a roughly 27% stake valued near $135 billion, with OpenAI committing to an incremental $250 billion in Azure services. Azure now runs at over a $75 billion annualized pace, and the AI business alone is at a $37 billion run rate, up 123% year over year.
What a $10,000 Stake Became Using split-adjusted prices, here is how the math shakes out across standard horizons versus the S&P 500.
Since Nadella’s First Day
Initial Investment: $10,000 (roughly 333 shares at $30.03) MSFT Total Return: 1,182.42% Current value: $128,242 S&P 500 (same period): 330.44% Microsoft S&P 500 1-Year Return −22.59% 20.63% 5-Year Return 44.39% 73.34% 10-Year Return 718.59% 251.22% A $10,000 stake placed on Nadella’s first day is now worth many multiples of the original, before dividends. But the recent picture is ugly. Microsoft has slid from a 52-week high of $555.45 to $385.10, dragged by fears that capital expenditures of $30.88 billion (+84% year over year) will crimp free cash flow before AI revenue catches up. The five-year window even trails the S&P 500.
Grading Nadella, and the Succession Question We have to give Nadella an A+. He inherited a roughly $300 billion company and built a $2.86 trillion one while lifting the quarterly dividend from $0.28 to $0.91. There is no confirmed news of any departure, but given his dual chair-and-CEO role, succession chatter is inevitable. A handoff to a proven operator like Scott Guthrie or Kevin Scott would likely reassure the market; a surprise external hire might not.
The Bull and Bear Case From Here The bull case rests on the AI capex cycle producing durable Azure margin. Analysts are overwhelmingly bullish, and their mean price target is all the way up at $559.86, on a forward P/E near 21. The bear case builds if capital spending keeps climbing while Azure growth slips below 30%, which would signal that AI return on investment is stretching further out. Because Microsoft’s cloud business is growing fast and it has a massive backlog of guaranteed future revenue, the stock looks attractive at its current price.
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.
08 July 2026, Bavaria, Munich: The Microsoft logo and lettering can be seen on the building housing the headquarters of Microsoft Deutschland GmbH in Parkstadt Schwabing in Munich (Bavaria, Germany). Microsoft Corporation is the world's largest software manufacturer and one of the largest companies in the world. (Symbolic image, stock photo, illustration, symbolic photo, illustrative photo, thematic image, general image, thematic photo) Photo: Matthias Balk/dpa (Photo by Matthias Balk/picture alliance via Getty Images)
dpa/picture alliance via Getty Images
This article was written by Doug Nathman, with research by his team at Trefis.
In the realm of major technology players, Microsoft is showcasing impressive growth and profit figures, yet its valuation indicates it is more of a contender than the champion.
Microsoft (MSFT) provides the digital solutions that power contemporary businesses, ranging from its Azure cloud services to the AI-enhanced Office applications used on countless desktops. Nevertheless, following a year in which its shares dropped -22% while the overall market advanced, it finds itself in an unusual position among its technology peers. While the company showcases some of the best growth and profitability metrics in the sector, its stock is valued relatively low compared to others in the group. Is Microsoft simply a better option within a less expensive field, or is the market sensing some underlying weakness?
Should A High Achiever Have A Mid-Level Valuation?The figures indicate a distinct disparity. Over the past year, Microsoft’s revenue has surged by 17.9%, exceeding Apple’s (AAPL) growth of 12.8% and Amazon’s (AMZN) 14.2%. Its operating margin stands at 47%, placing it among the top contenders, well above Alphabet’s 33% and Apple’s 33%. In light of this operational success, the market has assigned Microsoft a price-to-earnings ratio of 22.8 times. This is a notable discount compared to Apple, which is valued at 37.9 times earnings, despite showing slower growth and lower margins.
This isn’t an isolated instance. When compared to Alphabet (GOOG), Microsoft demonstrates comparable revenue growth, but with a significantly higher operating margin, yet it continues to trade at a lower multiple. The market rates Microsoft’s operational performance near the top of its competitive set while placing its stock price near the bottom. This kind of incongruity warrants further business insight.
MSFT Stock vs. Peers
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The Market Assigns A $190 Billion UncertaintyThe market acknowledges the impressive outcomes; instead, it is considering the considerable expenses involved in achieving future expansion. The core argument among investors revolves around a "disconnect that raises some concerns" regarding the pace of CapEx growth compared to revenue acceleration, as mentioned by one analyst during its recent call. Management has quantified this investment, stating they "anticipate investing approximately $190 billion in capital expenditures" for the year 2026 to support its AI initiatives.
This situation presents a genuine challenge. The market’s valuation reflects significant skepticism about the returns from such a massive investment. While the company’s AI segment is growing at an impressive rate, exceeding an annual run rate of $37 billion, the costs associated with this growth are substantial. Investors are evaluating whether the new "seats plus consumption" models for tools like Microsoft Copilot can yield sufficient high-margin revenue to validate the substantial expenditures, especially when general IT budgets are not necessarily increasing. The matter of what could genuinely drive the stock upward from this point rests on the success of this capital-heavy strategy.
The Azure Growth Rate Will Determine The OutcomeManagement maintains a strong outlook, projecting "another year of double-digit growth in revenue and operating income for FY ’27." The bullish perspective suggests that this expenditure is critical to seizing a once-in-a-generation opportunity, with Microsoft Cloud revenues already surpassing $54 billion last quarter, reflecting a year-over-year growth of 29%. The organization is laying the groundwork for an AI-driven economic framework and is confident that returns will follow.
The most crucial metric to monitor is the growth rate of Azure, the engine supporting this growth. All investments in data centers and GPUs need to result in a surge in cloud usage. Thus, the benchmark is management’s own forecast. They "expect Azure growth to exhibit slight acceleration." If that acceleration comes to fruition, it will indicate that the investment is paying off. Conversely, if it fails to materialize, the market's cautious valuation will have been vindicated.
This article explored one angle; our comprehensive peer-by-peer dashboards for MSFT present every metric side by side, with daily updates.
Choosing The Top Performer Still Leaves You With Just One Stock
Evaluating a company alongside its competitors clarifies the scenario -- however, irrespective of which company tops the list, holding a significant stake in a single entity constitutes a concentrated risk. Divesting from a large position in the conventional way entails a tax implication. There is a method to safeguard the position while efficiently diversifying without incurring taxes.
NEW YORK, July 13, 2026 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces that a class action lawsuit has been filed against Microsoft Corporation (NASDAQ:MSFT) and certain of the Company’s senior executives for securities fraud after its significant stock drop resulting from potential violations of the federal securities laws.
If you invested in Microsoft, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/microsoft-class-action-lawsuit.
Key Details of the Microsoft ($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.
Starbucks vyvíjí interní nástroje s pomocí umělé inteligence, které by mohly nahradit některé softwarové aplikace, jež v současnosti nakupuje od společností Microsoft a IBM. Podle interní prezentace, kterou získala agentura Bloomberg, kavárenský řetězec vytváří alternativy k systému Microsoftu pro sledování zásob a k nástroji IBM pro správu údržby. Některé z těchto interně vyvinutých řešení by mohly být nasazeny do konce příštího roku, pokud testování dopadne úspěšně.
Po mnoho let byly firmy silně závislé na svých technologických dodavatelích kvůli obavám z narušení provozu a složitosti vývoje vlastních systémů. Umělá inteligence však tuto situaci mění, protože usnadňuje vytváření aplikací od základu a zároveň firmy motivují zaměstnance k využívání těchto technologií.
Přední softwarové společnosti čelí rostoucím obavám ohledně toho, zda dokážou odolávat konkurenci ze strany produktů vytvářených startupy nebo dokonce jejich vlastními zákazníky za pomoci AI. Tento trend letos negativně doléhá na akcie softwarových firem. Jak Microsoft, tak IBM výrazně zaostávají za indexem S&P 500 a jsou od počátku roku v červených číslech.
Starbucks utratí ročně přibližně 400 milionů dolarů pouze za software, uvedl technologický ředitel společnosti Anand Varadarajan během interního setkání se zaměstnanci na začátku letošního roku. Podle záznamu schůzky, který Bloomberg přezkoumal, Varadarajan uvedl, že existují jasné příležitosti ke snížení výdajů na software.
Vlastní software může být levnější, což je významná motivace pro společnosti jako Starbucks, která se v rámci širší strategie obnovy snaží snížit náklady o dvě miliardy dolarů. Z dlouhodobého hlediska však vlastní vývoj může vést k vyšším nákladům na údržbu a pracovní sílu.
Podle prezentace společnost v oblasti technologií přezkoumává „každou smlouvu a každou službu“. V některých případech to znamená vyvíjet vlastní produkty jako náhradu za software, který musí její inženýři stejně rozsáhle upravovat podle vlastních potřeb.
Podle osob obeznámených se situací, které nebyly oprávněny veřejně hovořit, Starbucks již několik let pracuje na vývoji pokladního systému (point-of-sale system), který by nahradil řešení Oracle Simphony.
Starbucks se k celé záležitosti odmítl vyjádřit. Ve svém blogovém příspěvku z počátku roku společnost uvedla, že umělá inteligence a další technologické inovace podpoří její dlouhodobý růst a umožní baristům věnovat více času zákaznickému servisu.
Podle interní prezentace hrálo klíčovou roli při vývoji platformy, která by mohla nahradit nástroj IBM, programování s podporou AI. Starbucks zároveň aktivně podporuje technologické pracovníky v používání umělé inteligence a podle dřívějších informací agentury Bloomberg dokonce hodnotí její využívání jako součást systému bonusů.
Přesto existuje skepse ohledně toho, nakolik a jak rychle dokáže AI urychlit a automatizovat práci. Starbucks například nedávno stáhl systém pro sledování zásob v prodejnách založený na AI a vrátil se k manuálnímu počítání. Společnost také nadále využívá software od externích dodavatelů, včetně produktů společnosti Microsoft.
Tým podnikových technologií Starbucks je podle interní prezentace na cestě snížit svůj rozpočet přibližně o 30 milionů dolarů ve fiskálním roce končícím koncem září. Z toho asi 10 milionů dolarů představují úspory ve výdajích na software.
Dalších 13 milionů dolarů společnost ušetří především omezením spolupráce s externími kontraktory z poradenských a profesionálních služeb a nahrazením některých pozic vlastními zaměstnanci.
Starbucks zároveň buduje technologická pracoviště v Nashvillu a v Indii, kde bude část technologických pracovníků působit. Další zaměstnanci zůstanou v centrále společnosti v Seattlu. Od února loňského roku firma zrušila přibližně 2 300 pracovních míst, včetně mnoha pozic v technologických týmech.
Satya Nadella said that it was hypocritical for model makers to complain about distillation. Bloomberg/Getty Images Satya Nadella took a quiet swipe at AI labs like Anthropic for how they train their models.
In an X post on Sunday, the Microsoft CEO said that model makers complaining about distillation is hypocritical. Distillation is the process of training a less powerful model based on the outputs of a stronger one.
"While the great innovation that comes from model providers having fair use rights to train models on public data is needed, I find it ironic that the status quo is to then turn around and impose restrictive terms on distillation, and to reserve the right to learn from customer usage and interaction data," Nadella wrote.
He added that if learning only flows in one direction, owners of the learning infrastructure make all the money while creators of the knowledge get left out.
Frontier AI model makers like Anthropic, OpenAI, and Google DeepMind rely on work created by others to train their own models. ChatGPT, Claude, and Gemini acquire their "intelligence" from publicly available writing, images, and other data. Numerous companies and individuals have sued the leading AI labs over nonconsensual content "scraping."
Though the lab was not named, Nadella's comments seemed especially targeted toward Anthropic. Earlier this year, Anthropic CEO Dario Amodei complained that Chinese model makers are stealing his company's work, using Claude to train their own models.
Last month, Anthropic wrote a letter to South Carolina Sen. Tim Scott and Massachusetts Sen. Elizabeth Warren saying that Alibaba had recently carried out "the largest known distillation attack" on it to date.
"Competitors can use it to acquire powerful capabilities from other labs in a fraction of the time, and at a fraction of the cost, that it would take to develop them independently," Anthropic said in a lengthy statement on the subject in February.
Alibaba did not publicly respond to Anthropic's accusations at the time.
In Sunday's blog post, Nadella warned that companies relying on leading models are essentially handing over their proprietary data and then paying to use them.
He said companies should own their AI infrastructure and institutional knowledge rather than rely on any single model vendor. They should also conduct their own evaluations and their own "learning loop," allowing their AI capabilities to improve continuously over time.
"That is why enterprises need a real trust boundary for their human capital and token capital to compound," he said. "And it is a hard boundary across which nothing crosses, not even the intelligence exhaust, without consent."
Elon Musk has also criticized Anthropic for how it collects data and trains its models.
"Anthropic is guilty of stealing training data at massive scale and has had to pay multi-billion dollar settlements for their theft. This is just a fact," Musk wrote in a February X post, following Anthropic's complaint against Chinese models.
Anthropic did not immediately respond to a request for comment from Business Insider.
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Peter Gelling is a Senior Editor and the Weekend Bureau Chief at Business Insider. He also still writes, mostly about the AI industry, universal basic income, the economy, campaign finance reform, geopolitics, and anything else that inspires him.He was previously the Geopolitics Editor at Quartz and a Senior Editor at GlobalPost. From 2005 to 2010, he was a correspondent for The New York Times based in Jakarta, Indonesia.
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Jed Ellerbroek discusses the market's digestion of strong second-quarter gains, the impact of U.S.-Iran tensions on oil prices, and what's ahead for cyclical stocks. He highlights upcoming earnings from Alphabet (GOOGL), Amazon (AMZN), Meta Platforms (META) and Microsoft (MSFT).
New York, New York--(Newsfile Corp. - July 12, 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/304773
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 Corp. NASDAQ: MSFT has taken steps to lessen its reliance on frontier AI models, though it's not an outright declaration of protest. In June, the tech giant launched its own proprietary AI models (Microsoft AI or MAI) across select applications in its Office suite.
What this means for the user experience is an open question, but this is a clear margin play for Microsoft. The company competes in multiple areas of the AI infrastructure buildout. In a way that makes this move about controlling the controllables.
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Instead of experiencing death by a thousand cuts from OpenAI and Anthropic (i.e., the frontier models), Microsoft is trying to widen its existing moat and deliver strong returns on investment (ROI) from its AI spend. But will this be sufficient to alter the sentiment towards MSFT, which has declined approximately 20% year-to-date?
Microsoft Expands MAI to Reduce Reliance on OpenAIHere's the news behind the news. Bloomberg reported that Microsoft is quietly routing some Excel and Outlook prompts to MAI, its in-house model family, rather than to OpenAI or Anthropic. Tens of thousands of prompts a week are already running on Microsoft's own tech.
That's still a small slice of total Copilot traffic. OpenAI and Anthropic handle most of it today. But the direction of that travel matters more than the current split, and Microsoft has made its intentions clear.
At Build 2026 in June, Microsoft unveiled seven MAI models, including its first reasoning model, MAI-Thinking-1. The company says it matches Anthropic's Claude Opus 4.6 on coding tasks. AI chief Mustafa Suleyman put it bluntly: "We pay a lot of money to Anthropic, so our goal is to reduce and ultimately eliminate that cost."
How Microsoft's In-House AI Could Boost Profit MarginsFor investors, an easy way to think about this is as follows. Copilot is a $30-per-seat subscription that, prior to the MAI launch, was running on top of someone else's expensive AI model by default. Every prompt costs Microsoft money to process, and multiplied across hundreds of millions of Office users, that bill adds up fast.
Owning the model instead of renting it changes the equation entirely. Microsoft doesn't need MAI to win over every customer. It just needs MAI to be good enough for everyday spreadsheet formulas and email drafts, at a fraction of the cost.
That's the ROI story. Microsoft won’t win an AI arms race on raw intelligence. But it can compete more efficiently by converting a rented cost center into owned infrastructure.
Microsoft Uses MAI to Strengthen Its AI Competitive MoatMicrosoft chief executive officer (CEO) Satya Nadella has reportedly said he feared Microsoft becoming "the next IBM.” By that, he meant a company that let someone else own the most important layer of technology. MAI is Microsoft's answer to that fear.
Instead of a single point of AI dependency, Microsoft now runs a three-way hedge. It holds a stake in OpenAI, embeds Anthropic's Claude in Copilot, and increasingly leans on its own models where the economics make sense. That flexibility is arguably a bigger moat than any one model's benchmark score.
It also insulates Microsoft from a ticking clock. Microsoft's current discounted OpenAI pricing won't last forever, and that deal isn't set to expire until 2032. Building a credible in-house alternative now gives Microsoft leverage in any future renegotiation, rather than leaving it stuck paying whatever OpenAI or Anthropic decides to charge.
The Bear Case: Risks to Microsoft's AI StrategyBefore getting too bullish, a few caveats are worth weighing. This shift is still incremental, and Microsoft hasn't published any timeline for expanding it further. Most Copilot workloads still run on outside models today.
There's also a quality question. Microsoft's own materials frame MAI as matching prior-generation Anthropic models, not necessarily the current large language models (LLMs). If MAI-powered features feel noticeably worse, customer goodwill could take a hit that outweighs the cost savings.
What It Means for OpenAI and AnthropicThis is a warning shot worth watching. Anthropic filed confidentially for an IPO in June, and OpenAI is reportedly preparing a similar filing. Their biggest enterprise distribution partner is now also a competitor, building cheaper in-house alternatives.
That doesn't mean OpenAI or Anthropic are in immediate trouble. Both still handle the bulk of Copilot's AI traffic, and Microsoft has made it clear that it isn't ending either partnership. But the "picks and shovels" trade just got a little more complicated for anyone betting purely on third-party AI labs staying indispensable.
Microsoft Stock Rebounds After Hitting a 52-Week LowMicrosoft hit a 52-week low in late June. The 10% bounce off that level isn’t a sign that everything is perfect, but it does suggest that investors are leaning into the stock’s value proposition.
At around 22x forward earnings, Microsoft is trading at a discount to the S&P 500 and to its own history. An argument could be made that MSFT wasn’t overvalued when the sell-off began in November, and there’s ample reason to believe it’s undervalued now. The relative strength indicator reached oversold territory when MSFT bottomed in June.
But a larger story comes from analysts and institutions. The MSFT consensus price target of $559.84 is approximately 45% below its recent trading range. Plus, out of 48 analysts tracked by MarketBeat, 41 give MSFT a Buy rating, and seven rate it as a Hold. Analysts notoriously don’t like to be wrong, which may explain why some analysts have trimmed their price targets, but the overall sentiment remains bullish.
The same cautious optimism can be found in its institutional ownership. There's no question that buying has slowed in the first two quarters of the year. But buying still outpaces selling, and with MSFT at 22x earnings, this could be an attractive target for money that hasn’t left the market and is looking for growth in the second half.
Should You Invest $1,000 in Microsoft Right Now?Before you consider Microsoft, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Microsoft wasn't on the list.
While Microsoft currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Robotics and automation are rapidly becoming essential infrastructure across healthcare, manufacturing, logistics, and many other industries.
"Physical AI" is coming to the United States, and there are four ways that investors can gain exposure to this new robotics revolution. Plus, learn which seven companies are most positioned to benefit as intelligent robots enter the workforce.
NEW YORK, July 12, 2026 (GLOBE NEWSWIRE) -- 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:
(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 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.
Follow us for updates on LinkedIn, X, Facebook, or Instagram.
Contact Info
Peretz Bronstein, Esq. or Nathan Miller
Bronstein, Gewirtz & Grossman, LLC
917-590-0911 | [email protected]
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Prior results do not guarantee similar outcomes.
Elon Musk's most ambitious project to date now has a name. He recently confirmed on X (formerly Twitter) that Space Exploration Technologies' (SPCX 4.51%) planned artificial intelligence (AI) satellite constellation will be called "Starmind."
Musk briefly became the world's first trillionaire following SpaceX's initial public offering (the largest IPO ever). And his wealth could expand significantly if Starmind fulfills its potential.
Could Starmind even render Amazon (AMZN 0.69%) Web Services (AWS), Microsoft (MSFT +0.15%) Azure, and Alphabet's (GOOG 0.34%) (GOOGL 0.50%) Google Cloud obsolete? Here's what investors need to know.
Image source: Getty Images.
Leaving Starlink in the stardust SpaceX's Starlink satellite internet service business has been the company's crown jewel so far. However, that could change if Musk achieves his goal for Starmind.
He plans to launch up to 1 million satellites that run AI workloads in orbit. This number is roughly 100 times the number of satellites currently operated by Starlink. It's also several times the total number of satellites launched in human history. The idea is for the satellites to process their data in space, then beam the results back to Earth.
Two of the biggest challenges for AI data centers on Earth are the need for massive amounts of electricity and the significant heat they generate, which requires cooling. Starmind addresses both issues. Its satellites will be solar-powered. As Musk likes to say, "It's always sunny in space." Also, much less cooling will be needed because the AI processors will radiate heat into space.
There's another big plus to orbiting AI data centers: no permitting or zoning obstacles. The main drawback for Starmind's approach is the cost of launching the satellites -- but SpaceX's reusable Starship spacecraft should help on that front.
Today's Change
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Obsoleting the hyperscalers? AWS, Microsoft Azure, and Google Cloud currently rank as the world's three largest AI hyperscalers. Will these businesses be made obsolete by Starmind, with SpaceX growing exponentially? I wouldn't go that far.
For one thing, SpaceX still faces significant technological and regulatory hurdles in building Starmind at full scale. Also, Amazon, Microsoft, and Alphabet won't simply allow their fastest-growing businesses to go away without a fight. The three tech giants could become SpaceX customers. Amazon could leverage its Leo satellite business and connection with founder Jeff Bezos' Blue Origin to compete more effectively.
Musk has also made grandiose predictions in the past that haven't come true. It could happen again with his planned AI satellite constellation.
Still, Amazon, Microsoft, and Alphabet will almost certainly be closely watching Musk's audacious strategy with Starmind. Investors should, too.
Keith Speights has positions in Alphabet, Amazon, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, and Microsoft. The Motley Fool has a disclosure policy.
by Todd Bishop on Jul 11, 2026 at 9:19 amJuly 11, 2026 at 11:11 am
Scenes from this week’s founder open house on the deck at GeekWire HQ in Seattle, where we also recorded this week’s podcast. Thanks to Delta Air Lines, Prime Team Partners, WTIA and ALLtech for sponsoring the event. (Photos by Kurt Schlosser and John Cook) On this week’s show, we’re on the GeekWire deck for our annual founder open house, where we dig into Microsoft’s latest round of layoffs — including a major Xbox shakeup — and the surprising rise of hardware companies on the GeekWire 200.
Then we sit down with four guests to talk about how AI is reshaping how they build:
Jana Schuster of StackIQ, whose AI-native platform helps companies find redundancy in their software spending — like Rocket Money, but for business — with a small team. Blake Resnick and David Benowitz of Brinc Drones, whose mechanical engineers are now vibe coding their own prototypes; Boaz Ashkenazy of Shift AI, who’s setting up always-on agents and rethinking how we interact with AI tools. Finally, this week’s GeekWire Trivia Challenge: how a longtime T-Mobile executive got his start in the wireless business, and the star-studded history of T-Mobile celebrity endorsers.
Stories mentioned:
Microsoft cuts 4,800 jobs, about 2% globally, revamps salesforce and launches massive Xbox overhaul GeekWire 200 update: New unicorns and a hardware surge remake our list of top Pacific NW startups Former GitHub CEO’s startup Entire unveils its answer to the crush of AI coding agents Chicago software company plants flag in Seattle area as new leadership team seeks AI talent T-Mobile exec Mike Katz exits after 28 years, as carrier reshuffles top ranks and taps ex-AT&T leader Audio editing by Curt Milton.
Previous StoryElon Musk’s Mars illusion Microsoft cuts 4,800 jobs, about 2% globally, revamps salesforce and launches massive Xbox overhaul
Supply chain startup Auger, led by ex-Amazon operations chief, raises $50M and lands big customers
Xbox at a crossroads: 25 years later, Microsoft is done playing around
New York, New York--(Newsfile Corp. - July 11, 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/304772
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
Gil Luria, Head of Technology Research at D.A. Davidson, frames the debate over AI capital spending as a timing problem. Microsoft, Amazon, and Alphabet say their data center investments are already generating attractive returns because much of the capacity is sold before construction is complete. Investors are still waiting for those returns to become visible in reported cash flow.
“There’s a disconnect between what the companies are saying about return on investment from this AI spend and what investors feel,” Luria explained during a July 10 CNBC interview. “What investors see is diminishing cash flows, the lowest levels of cash flow margin they’ve seen in a long time.”
Luria believes both sides can be right. Hyperscalers are spending enormous sums upfront to meet contracted demand from customers such as OpenAI and Anthropic, while the revenue and cash flow from those investments will arrive over several years. The key question is whether cloud growth can accelerate quickly enough to justify the historic spending underway today.
OpenAI and Anthropic’s Cumulative Run Rate Climbed From Under $20B to Over $75B in 6 Months The clearest evidence that this spending cycle is anchored in real consumption sits on the customer side. “OpenAI and Anthropic combined had less than $20 billion run rate just six months ago. Now they have more than $75 billion run rate. That’s a huge curve,” Luria said.
That is the readthrough Luria wants investors to focus on. “For Microsoft, Amazon and Google… what those three companies are saying is these investments are already coming at good returns. You just don’t see that yet. When we build a data center, it’s already pre-sold. We know what it’s going to cost to build and operate. We’re marking that up substantially to our customers, and therefore there’s a good return.”
Microsoft Nearly Doubled Capex Without Sacrificing Its Margins Microsoft’s (NASDAQ:MSFT | MSFT Price Prediction) Q3 FY26 capex totaled $30.88 billion, up 84.39% year-over-year, while operating margin held at 46.3% and the AI business reached a $37 billion annual run rate, up 123% year-over-year. Commercial remaining performance obligations reached $627 billion, an enormous pre-sold backlog.
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Luria pointed to the offset that keeps margins steady: “We saw Microsoft do layoffs at Xbox to make sure that they can show that their revenue acceleration is happening with stable margins. That’s a sign of good returns.” He also expects Azure growth to accelerate from 40% in upcoming guidance. Microsoft shares are down 20.17% year-to-date through July 9, 2026, trading at $384.36.
Amazon Is Spending $200 Billion to Meet Explosive AI Demand Amazon (NASDAQ:AMZN) posted AWS revenue of $37.587 billion in Q1 2026, up 28%, the fastest growth in 15 quarters, at a 37.7% operating margin. The custom chips line topped a $20 billion revenue run rate, growing triple digits year-over-year. Anthropic committed to up to 5 GW of Trainium capacity and OpenAI to roughly 2 GW starting in 2027. Q1 capex climbed to $44.203 billion, and full-year 2026 capex is guided at roughly $200 billion.
Google Cloud Grew 63% as Free Cash Flow Fell 47% Alphabet (NASDAQ:GOOGL) posted the most dramatic acceleration. Google Cloud revenue grew 63% to $20.03 billion, with backlog nearly doubling quarter-on-quarter to over $460 billion. Capex more than doubled to $35.67 billion, and 2026 capex is guided at $175-$185 billion. Free cash flow fell to $10.12 billion, down 46.63% year-over-year. That is exactly the cash flow compression Luria described. Alphabet shares are up 14.81% year-to-date.
What to Watch Next Luria’s thesis rests on a multi-year gap between when hyperscalers spend money and when investors see the returns. Data centers require enormous upfront capital, while the revenue and cash flow they generate will likely arrive over years one through five. In the meantime, Microsoft, Amazon, and Alphabet are protecting margins by cutting costs elsewhere and pointing to pre-sold capacity, accelerating cloud growth, and enormous backlogs as evidence that the demand is real.
The near-term test will be whether Azure accelerates from 40% growth and whether AWS and Google Cloud sustain their recent momentum. Microsoft’s $627 billion commercial backlog, Amazon’s capacity commitments from Anthropic and OpenAI, and Alphabet’s cloud backlog above $460 billion all support the hyperscalers’ argument.
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, /PRNewswire/ -- The Law Offices of Frank R. Cruz announces that investors with losses related to Microsoft Corporation ("Microsoft" or the "Company") (NASDAQ: MSFT) have opportunity to lead the securities fraud class action lawsuit.
IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN MICROSOFT CORPORATION (MSFT), CLICK HERE BEFORE AUGUST 11, 2026 (THE LEAD PLAINTIFF DEADLINE) TO PARTICIPATE IN THE ONGOING SECURITIES FRAUD LAWSUIT.
What Is The Lawsuit About?
The complaint filed alleges that, between May 1, 2025 and January 28, 2026, Defendants failed to disclose to investors: (1) that Microsoft's Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems; (2) that Microsoft's flagship proprietary AI model ranked well below competitors on a number of benchmark tests; (3) that Microsoft needed to increase by billions of dollars its capital expenditures and divert GPU and CPU capacity away from fulfilling demand for its profitable Azure services in order to improve the competitive positioning of its critical Copilot family of products and increase its AI-related R&D; (4) that, as a result of the foregoing, Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and the Company's Copilot offerings had lost market share to rival products, a trend that was increasing; and (5) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Contact Us To Participate or Learn More:
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us.
The Law Offices of Frank R. Cruz,
Email us at: [email protected]
Call us at: 310-914-5007
Visit our website at: www.frankcruzlaw.com
Follow us for updates on Twitter: twitter.com/FRC_LAW.
If you inquire by email, please include your mailing address, telephone number, and number of shares purchased.
To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
SOURCE The Law Offices of Frank R. Cruz, Los Angeles
Microsoft (NASDAQ:MSFT | MSFT Price Prediction) has spent the first half of 2026 in the penalty box. Shares are down 19.24% year to date, weighed down by AI capex anxiety, Copilot execution questions, and a securities class action tied to the January earnings reaction. But fundamentals tell a different story, and our model sees a meaningful gap between price and value.
Our 24/7 Wall St. price target for Microsoft is $500.25, implying 28.65% upside from $388.84. The recommendation is buy with 90% confidence.
24/7 Wall St. Price Target Summary Metric Value Current Price $388.84 24/7 Wall St. Price Target $500.25 Upside 28.65% Recommendation BUY Confidence Level 90% How MSFT Got Cheap Again Microsoft entered 2026 near $551.05 and has since traded down to a 52-week low of $349.20. The one-year decline sits at 21.25%, though the stock bounced 4.24% in the past week.
Two factors weigh on the stock. First, a securities fraud class action filed after the January 28 earnings reaction alleges Microsoft misled investors on Copilot adoption and Azure growth. Second, capital intensity has exploded: CapEx of $30.88 billion in Q3 FY26 was up 84.39% year over year.
Operating results contradict the price action. Q3 FY26 delivered EPS of $4.27 versus $4.09 expected on revenue of $82.89 billion (+18.3% YoY). Azure grew 40%, and CEO Satya Nadella noted “Our AI business surpassed an annual revenue run rate of $37 billion, up 123% year-over-year.”
Commercial remaining performance obligations reached $627 billion, up 99%, a demand signal that dwarfs current market cap concerns.
The Case for $600+ Bulls have a straightforward path. Fifty-four of 57 analysts rate Microsoft Buy or Strong Buy, with a consensus target implying 46.2% upside.
Seeking Alpha’s Gytis Zizys recently upgraded to Buy, arguing “The current 35% discount below fair value presents an attractive long-term entry point.” Our bull case scenario models MSFT at $600.58 by July 2027, a 54.45% total return.
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Catalysts are tangible. Azure’s 40% growth is accelerating, the OpenAI restructuring extended Microsoft’s IP rights through 2032 and secured a $250 billion incremental Azure commitment, and Microsoft is now replacing OpenAI and Anthropic models with its own MAI models in Excel and Outlook, materially improving unit economics on Copilot.
What Could Go Wrong The bear case rests on capex indigestion and Copilot adoption falling short of the AI narrative. Our bear scenario sees MSFT at just $444.46 in twelve months, a 14.3% return that would underperform expectations.
Alphabet’s Google Cloud grew 63% with an AI-powered revenue surge and a $462 billion backlog, applying competitive pressure. The 33 recent insider transactions skewing net-sell add caution.
The 84% CapEx surge that spooked investors funds infrastructure backing the same $627 billion RPO bulls celebrate. Free cash flow generation of $46.68 billion in operating cash flow for a single quarter provides ample cushion.
Microsoft Price Prediction 2026-2030 The 24/7 Wall St. price target of $500.25 with buy conviction at 90% confidence reflects a company trading at 20x forward earnings despite 23.4% earnings growth and 46% operating margins.
The key factor is the RPO backlog: $627 billion in contracted future revenue represents binding customer commitments. The bullish thesis holds if Azure sustains the 35%+ growth line through fiscal 2027; conviction weakens if Copilot enterprise seat count materially misses in the next two earnings reports.
Year 24/7 Wall St. Price Target 2026 (year-end) $447 2027 $500 2028 $601 2029 $675 2030 $730 These projections assume Microsoft continues executing on Azure and enterprise AI adoption at current trajectories. Significant upside could result from Copilot monetization outperforming, while a broader AI capex reset or adverse ruling in the pending Copilot securities litigation could compress this path.
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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 bought Microsoft again this week, and I will buy it again next week. The stock keeps getting cheaper while the business it represents keeps getting bigger, and that math is the whole confession.
Microsoft (NASDAQ:MSFT | MSFT Price Prediction) is the one hyperscaler willing to show the work on AI monetization. On the Q3 FY26 call, Satya Nadella told investors “Our AI business surpassed $37 billion ARR, up 123%.” That is booked revenue running at that pace right now.
Shares closed at $384.36 on Thursday, down 20.17% year to date and 23.05% over the past twelve months. Meanwhile Q3 FY26 revenue landed at $82.89 billion, up 18.3% YoY, EPS came in at $4.27 for a fourth straight beat, and Azure grew 40%. The panic lives in the ticker. The fundamentals kept working.
Three Numbers That Keep Me Buying First, the backlog. Commercial remaining performance obligations reached $627 billion, up 99% YoY. That is contracted future revenue, nearly doubled in twelve months. When enterprises sign nine-figure checks committing to years of Azure and Copilot consumption, that reads as enterprise AI adoption in the plumbing.
Second, the quality of the earnings underneath it. Operating margin last quarter was 46.3%, return on equity is 34%, debt to equity sits at 0.176, and interest coverage runs at 53.89x. Microsoft guided to roughly $190 billion in calendar 2026 capex and still generated $71.61 billion of free cash flow in FY25. This is a fortress paying for its own construction crew.
Third, the valuation. Trailing P/E is 23, forward P/E is 20, and the stock trades well below its 200-day moving average of $443.59. Getting a 46% operating margin business growing revenue at 18% for a mid-20s multiple is when I stop asking clever questions.
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Why Not Amazon, Alphabet, or Oracle Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL), and Oracle (NYSE:ORCL) all compete for the same enterprise AI dollar. My money keeps going to Microsoft because none of them can show me a $627 billion RPO alongside a $37 billion AI run rate growing 123% sitting on top of $217 billion of TTM gross profit. That software annuity is what pays the GPU bill while the competition still argues about theirs.
The Real Risk The $190 billion capex commitment is the thing that could actually hurt me. If enterprise AI monetization slows before the workflows compress, the return on that spend gets ugly. CFO Amy Hood addressed it directly: “We remain confident in the return on these investments given higher demand signals and increasing product usage.”
What keeps my finger on the buy button is what is already on the books. Paid Copilot seats crossed 20 million, up 250% YoY, with Accenture alone at 740,000 seats. Hood said Azure will stay capacity constrained “at least through 2026.” Demand exceeding supply reads as a queue forming.
One post on r/stocks last month put it plainly: “Microsoft is now cheaper than the April 2025 Tariff crash, yet TTM EPS is up 30%. Huge bargain.” The Street agrees on direction if not urgency: 54 buy ratings against three holds and zero sells.
My cost basis keeps improving. My share count keeps growing. Every ninety days Microsoft hands me another receipt. I am buying more.
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NEW YORK, July 10, 2026 (GLOBE NEWSWIRE) -- The Gross Law Firm issues the following notice to shareholders of Microsoft Corporation (NASDAQ: MSFT).
Shareholders who purchased shares of MSFT during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery.
ALLEGATIONS: The complaint alleges that during the class period, Defendants issued materially false and/or misleading statements and/or failed to disclose that: (a) Microsoft’s Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems; (b) Microsoft’s flagship proprietary AI model ranked well below competitors on a number of benchmark tests; (c) Microsoft needed to increase by billions of dollars its capital expenditures and divert GPU and CPU capacity away from fulfilling demand for its profitable Azure services in order to improve the competitive positioning of its critical Copilot family of products and increase its AI-related R&D; and (d) as a result of (a)-(c) above, Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and the Company’s Copilot offerings had lost market share to rival products, a trend that was increasing.
DEADLINE: August 11, 2026 Shareholders should not delay in registering for this class action. Register your information here: https://securitiesclasslaw.com/securities/microsoft-corporation-loss-submission-form/?id=192872&from=3
NEXT STEPS FOR SHAREHOLDERS: Once you register as a shareholder who purchased shares of MSFT during the timeframe listed above, you will be enrolled in a portfolio monitoring software to provide you with status updates throughout the lifecycle of the case. The deadline to seek to be a lead plaintiff is August 11, 2026. There is no cost or obligation to you to participate in this case.
WHY GROSS LAW FIRM? The Gross Law Firm is a nationally recognized class action law firm, and our mission is to protect the rights of all investors who have suffered as a result of deceit, fraud, and illegal business practices. The Gross Law Firm is committed to ensuring that companies adhere to responsible business practices and engage in good corporate citizenship. The firm seeks recovery on behalf of investors who incurred losses when false and/or misleading statements or the omission of material information by a company lead to artificial inflation of the company's stock. Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT:
The Gross Law Firm
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Phone: (646) 453-8903
LOS ANGELES, July 10, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm, a national shareholder rights litigation firm, reminds investors of a class action lawsuit against Microsoft Corporation (“Microsoft” or “the Company”) (NASDAQ: MSFT) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.
Investors who purchased the Company’s securities between May 1, 2025 and January 28, 2026, inclusive (the “Class Period”), are encouraged to contact the firm before August 11, 2026.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The class, in this case, has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
According to the Complaint, the Company made false and misleading statements to the market. Microsoft’s Copilot AI products suffered from problems ranging from poor user experience to capacity limitations. The Company’s AI model ranked poorly against competitors on industry benchmark tests. The Company would need to spend billions on capital expenditures related to AI including diverting hardware away from profitable business units to improve its competitive posture in artificial intelligence. The Company was incapable of converting a large percentage of Microsoft 365 users to paid Copilot subscriptions, losing market share to rivals. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about Microsoft, investors suffered damages.
Join the case to recover your losses
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
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Three days after announcing the largest mass layoff in the video game industry this year, Xbox CEO Asha Sharma got a new title: co-lead of the Federal Reserve’s task force on Productivity and Jobs. Sharma announced 3,200 job cuts across Microsoft’s gaming division on July 6, 2026. The Fed named her to the task force on July 9. She is the only sitting CEO named to any of the Fed’s five new external task forces, and will help shape how the central bank thinks about artificial intelligence and employment for the next decade.
The Appointment Fed Chairman Kevin Warsh, in the job less than two months unveiled five external advisory groups covering Productivity and Jobs, Inflation Frameworks, Communications, Balance Sheet, and Data. Sharma’s group is charged with “assessing the economic impact of new general-purpose technologies, including artificial intelligence, to inform the Federal Reserve’s policy judgments,” with recommendations due by year end.
Her co-members carry weight. Marc Andreessen, co-founder of Andreessen Horowitz, joins after being named to the US Defense Policy Board in late June. Charles I. Jones, a Stanford economist currently on leave at Anthropic, brings frontier-lab exposure. Elsewhere on the rosters sit former Walmart CEO Doug McMillon, former Bank of England Governor Mervyn King, former Fed Governor Jeremy Stein, Harvard’s Greg Mankiw, and Nobel laureate Thomas Sargent. Warsh framed the effort plainly: “The U.S. economy has changed significantly over the last generation, and never more so than right now.”
The Layoffs She’s Bringing to the Table Sharma, appointed Xbox CEO earlier in 2026 after running Microsoft’s CoreAI product division, was the first Xbox chief to arrive from an AI background rather than gaming. Her July 6 memo cut deep. ZeniMax Online (maker of The Elder Scrolls Online) lost hundreds of jobs; Id Software (Doom) shed roughly 100. Double Fine, Ninja Theory, Undead Labs, and Compulsion Games are being parted ways with, some returning to independent status. The cuts sit on top of roughly 8,000 company-wide layoffs Microsoft announced in May 2026, and they are part of Microsoft’s restructuring of gaming around AI-driven game development.
The optics are unavoidable. The executive advising the Fed on how AI reshapes employment at Microsoft (NASDAQ:MSFT | MSFT Price Prediction) is executing that reshaping in real time. Her expertise is genuine. The timing has drawn attention.
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The Monetary Policy Payoff Look past the gaming-industry story and this signals interest rates. The Warsh Fed is elevating AI’s impact on jobs and productivity from background variable to central policy input. The stakes cut both ways: if AI proves deflationary by replacing labor and compressing wage growth, the Fed can cut sooner and hold rates lower; if AI proves inflationary through energy demand, reshoring, and a capex boom, the opposite.
The market currently sides with the inflationary case. Polymarket traders assign a 78.45% probability of zero Fed rate cuts in 2026, with the fed funds rate holding at 3.75% since December 10, 2025 and core PCE inflation sitting at the 90.9th percentile of its 12-month range. The labor market backdrop remains stable: unemployment at 4.2% in June, initial claims at 215,000, and 7.59M job openings in May.
That backdrop makes the task force’s conclusion consequential. A Fed finding that formally endorses AI as deflationary would be bullish for rate-sensitive sectors and could pull forward the cutting cycle. For Microsoft, Sharma’s employer, that conclusion would validate the Copilot investment thesis at the source. Watch for the year-end report. The Xbox CEO who cut 3,200 jobs this week will help write it.
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NEW YORK, July 10, 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.
Item 1 of 2 A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, March 25, 2024. REUTERS/Gonzalo Fuentes/File Photo
[1/2]A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, March 25, 2024. REUTERS/Gonzalo Fuentes/File Photo Purchase Licensing Rights, opens new tab
CompaniesLONDON, July 10 (Reuters) - Britain has designated cloud service providers Microsoft (MSFT.O), opens new tab, Google (GOOGL.O), opens new tab, Amazon (AMZN.O), opens new tab and Oracle (ORCL.N), opens new tab as critical third-party suppliers to its financial sector, bringing them under direct regulatory oversight.
The move is aimed at strengthening the resilience of financial firms by reducing the risk of widespread disruption from cyber attacks or technology outages.
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"As banks, insurers and financial market infrastructures become increasingly reliant on cloud services, disruption at a major supplier could affect multiple firms at the same time, potentially impacting services customers depend on," the government said in a statement on Friday.
The government designated Microsoft Ireland Operations Ltd, Google Cloud EMEA Ltd, Amazon Web Services EMEA SARL, and Oracle Corporation UK Ltd as critical third parties, effective July 13.
The firms will be supervised jointly by the Bank of England, the Prudential Regulation Authority and the Financial Conduct Authority. They will be required to undergo resilience testing, conduct regular self-assessments and report major incidents.
Britain's approach contrasts with that of the European Union, which in November designated 19 technology and services firms under a similar framework.
A Google Cloud spokesperson said: "With effective implementation and meaningful industry engagement, this new Critical Third Party framework can enhance the long-term resilience of the UK's financial ecosystem and increase understanding, transparency, and trust between all parties."
Reporting by Phoebe Seers and Muvija M. Editing by William James and Mark Potter
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Image Credits:Rafael Henrique/SOPA Images/LightRocket / Getty Images Earlier this week, Bloomberg reported that Microsoft was replacing some of OpenAI’s software with its own in-house models in an effort to cut costs. Those in-house models, known as MAI, were increasingly being used to power apps like Word and Excel, the outlet noted.
The story raised an increasingly common question about the two companies, which were once seemingly inseparable, and have recently sent mixed signals about the status of their situationship: Were the two companies drifting apart?
Now, OpenAI is attempting to put any insinuations of such a break to rest. During OpenAI’s launch of GPT 5.6 on Thursday, the company announced that it would become the “preferred model” powering Microsoft’s 365 Copilot.
OpenAI noted in a blog post published Thursday that GPT 5.6 would support Microsoft users across the company’s suite of productivity apps, including Word, Excel, PowerPoint, and Cowork.
“Our partnership with Microsoft has always been about bringing the benefits of advanced AI to more individuals and organizations, and we’re excited to continue building on that shared commitment,” OpenAI wrote in a blog post.
What being a “preferred model” actually means isn’t entirely clear, other than that OpenAI’s software will continue to power Microsoft’s apps.
That said, it was never reported that ChatGPT’s software would stop powering Microsoft’s apps — merely that Microsoft was relying increasingly on its own software in an effort to reduce costs. The new “preferred model” disclosure doesn’t appear to negate that previous reporting.
, /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Microsoft Corporation ("Microsoft" or the "Company") (NASDAQ: MSFT). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
The class action concerns whether Microsoft and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
You have until August 11, 2026, to ask the Court to appoint you as Lead Plaintiff for the class if you purchased or otherwise acquired Microsoft securities during the Class Period. A copy of the Complaint can be obtained at www.pomerantzlaw.com.
[Click here for information about joining the class action]
On January 28, 2026, Microsoft announced disappointing results for its fiscal second quarter ended December 31, 2025. First, during the quarter Microsoft's Azure growth had slowed suddenly and fallen below analyst expectations. During the related earnings call, CFO Amy E. Hood revealed that the slower Azure growth was primarily due to computational capacity constraints, as Microsoft had diverted CPU and GPU capacity to Copilot applications and AI-related R&D. Second, Microsoft revealed that its capital expenditures had increased to $37.5 billion during the quarter, causing Microsoft's capital expenditures for the first six months of its fiscal 2026 to increase to $72.4 billion compared to $88.2 billion for all of Microsoft's fiscal 2025. Third, Microsoft revealed, for the first time, that the number of paid Microsoft 365 Copilot seats totaled only 15 million to date, materially below analyst estimates and a fraction of the more than 450 million commercial Microsoft 365 users.
On this news, the price of Microsoft stock fell nearly 10%.
Then, on February 3, 2026, The Wall Street Journal revealed, in an article titled "Microsoft's Pivotal AI Product Is Running Into Big Problems," that severe challenges and functionality issues had plagued Microsoft's Copilot offerings, leading to Copilot losing market share during the Class Period to competing products such as Google's Gemini. The price of Microsoft stock continued to fall in the days after Microsoft's second quarter 2026 earnings announcement as the market continued to digest the adverse news and sources such as The Wall Street Journal revealed new adverse information.
Thereafter, on March 17, 2026, The Wall Street Journal revealed in an article titled "Microsoft Seeks More Coherence in AI Efforts With Copilot Reorganization" that Microsoft was reorganizing its Copilot product teams to unify commercial and consumer versions partly in response to the challenges revealed by The Wall Street Journal's prior reporting on Copilot's problem-plagued development and disappointing customer adoption.
On this news, the price of Microsoft stock continued to fall.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
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ToplineMicrosoft on Thursday reported its carbon emissions swelled last year as the software giant built new data centers, marking a setback for its climate goals as booming AI demand is expected to drive a sharp increase in global emissions over the next decade.
Demand for AI is expanding, but sustainability solutions are “not scaling fast enough,” Microsoft reported.
Copyright 2016 The Associated Press. All rights reserved.
Key FactsMicrosoft emitted 20 million metric tons of carbon dioxide equivalent—a measurement of all greenhouse gases as if they were carbon dioxide—last year, a 25% increase from the 16 million metric tons emitted in 2024, the company said in its annual sustainability report.
Microsoft President Brad Smith and Chief Sustainability Officer Melanie Nakagawa said in the report that while AI infrastructure is driving demand for energy, water, land and materials, “sustainability solutions are not scaling fast enough to meet demand,” noting, “This tension is real, and it is also productive.”
The company also said its reported emissions were affected by a decision to pause purchases of renewable energy credits, which firms use to offset emissions associated with electricity use.
big number300 million metric tons. That’s the amount of global carbon dioxide emissions from data center electricity use the International Energy Agency expects by 2035, nearly doubling from 180 million tons today.
tangentOfficials in Cheyenne, Wyoming, have reportedly traced the construction of a Wyoming-based data center for Meta to a rare bacterium found in the city’s wastewater treatment center. The bacterium did not enter the city’s drinking supply, and the Cheyenne Board of Public Utilities said it would pause accepting industrial water discharge from any data center.
key backgroundMicrosoft pledged in 2020 to pull more carbon from the atmosphere than it emits by 2030, but its goal has seemingly hit a roadblock in recent years as companies sparked a frenzy building AI infrastructure. Microsoft has announced several data center projects over the last year, including a $3 billion site in Wisconsin the company claims will be the most advanced AI data center in the world, the Wall Street Journal reported. Other tech giants have pointed to surging AI demand as driving an increase in carbon emissions: Alphabet reported a 48% increase in emissions from 2019 to 2024, citing an uptick in data center operations and growing demand for AI products. The Google parent acquired the clean energy startup Intersect Power in December as it planned to rely on renewable energy for data center projects.
further readingForbesAlphabet Buys Clean Energy Startup For AI Data Centers In $4.75 Billion DealBy Ty Roush
Microsoft's greenhouse gas emissions jumped 27% in its latest fiscal year, the tech giant disclosed Thursday, adding to a wave of worsening environmental reports from an industry racing to build AI infrastructure.
Amazon (NASDAQ:AMZN | AMZN Price Prediction) and Microsoft (NASDAQ:MSFT) both filed earnings on April 29, 2026, framing two different bets on the AI buildout. Amazon leans on custom silicon and, per a $25 billion multi-tranche bond sale, to fund infrastructure. Microsoft leans on its OpenAI stake and contracted backlog. Same tailwind, different balance sheets.
AWS Reaccelerates While Azure Sprints Ahead Amazon posted EPS of $2.78 against a $1.653 estimate on revenue of $181.52 billion, up 16.61%. AWS grew $37.59 billion in revenue, growing 28%, the fastest pace in fifteen quarters, at a 37.7% operating margin. Ads cleared $70 billion trailing, a real second engine.
Microsoft delivered EPS of $4.27 versus $4.09 expected on $82.89 billion in revenue, up 18.3%. Azure grew 40% (39% constant currency), and the AI business hit $37 billion annual run rate, up 123%. Commercial remaining performance obligations reached $627 billion, nearly doubling year-over-year, contracted demand years out.
Business Driver Amazon Microsoft Cloud growth AWS +28% Azure +40% Q1 CapEx $44.2B $30.88B Operating margin 11.2% 45.6% Custom Silicon Vs. Contracted Compute Andy Jassy said Amazon’s chips business is at $20 billion run rate with triple-digit growth, with total Trainium commitments reaching over $225 billion, including up to 5 GW from Anthropic and 2 GW from OpenAI starting in 2027. Jassy expects Trainium to save “tens of billions of dollars of CapEx each year”.
Microsoft’s leverage is contractual. Satya Nadella framed the quarter around delivering “cloud and AI infrastructure and solutions” for the agentic era. Microsoft leans heavily on NVIDIA silicon and its OpenAI partnership, enormously profitable but leaving less optionality on chips than Amazon has built.
The Capex Bill Is About To Get Louder Amazon’s TTM free cash flow collapsed 95% to $1.2 billion, and long-term debt jumped to $119.1 billion from $65.6 billion. Polymarket traders assign 87.5% probability that 2026 capex tops $200 billion, with a coin-flip on $220 billion or more. Microsoft’s CapEx surged 84.39% year-over-year, and management stayed quiet on numeric guidance. I want to see whether AWS margins hold as this cash deploys.
Why I’m Leaning Toward Amazon Right Now Since the reports, AMZN is down 6.49% and MSFT is down 8.19%. Neither has been rewarded. Amazon’s ability to tap institutional debt cheaply, pair it with a chip stack customers are pre-buying in gigawatts, and still show 29.6% operating income growth on core business tilts the read. Microsoft is a fantastic compounder at 45.6% operating margin, and if you want quality and dividend support, that case is intact. But if custom silicon is the real moat of this cycle, Amazon looks like the fortress trade. I would change my view if AWS margin slips below the mid-30s while capex keeps climbing.
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.
by Lisa Stiffler on Jul 9, 2026 at 9:00 amJuly 9, 2026 at 8:30 am
Inside a Microsoft data center. (Microsoft Photo) Microsoft has just four more years to reach its ambitious goal of removing more planet-warming carbon that it produces. But the company’s annual sustainability report, released Thursday, shows it’s moving in the opposite direction, as its 2025 emissions spiked 25% over the previous year.
Despite the troubling increase, Microsoft leaders say they remain committed to the longer-term goal.
“We continue to really be focused around carbon negativity by 2030,” said Melanie Nakagawa, chief sustainability officer, in an interview with GeekWire.
The Redmond, Wash.-based company is the latest tech giant to fall further behind its climate targets as they invest billions of dollars in new, energy-hungry data centers to power the AI boom. Amazon’s carbon footprint jumped 16% last year, while Google’s greenhouse gas emissions swelled 18%.
The report also shows how much energy use drove that increase: Microsoft’s emissions from purchased electricity — known as Scope 2 emissions — grew by 25% last year.
In total, Microsoft produced 34 million metric tons of carbon dioxide equivalent in 2025. After subtracting the carbon it paid to remove from the atmosphere, that figure drops to a net 20 million tons. That puts the company’s footprint roughly on par with the total emissions of Panama or Lithuania.
In addition to data center expansion, Nakagawa said, the carbon increase was also driven by Microsoft’s decision to stop buying unbundled, short-term renewable energy certificates, or RECs — a mechanism companies can use to quickly lower their reported emissions for a given year. Microsoft is instead prioritizing longer-term initiatives with bigger impact, she said.
The challenge Microsoft wants to answer, she said, is how to take a “portfolio approach” that spans carbon dioxide removal, carbon-free electricity, sustainable materials, and fuels — addressing all of them together rather than in isolation.
Image from Microsoft’s 2026 sustainability report. Where Microsoft made gains The annual report highlighted areas of success. That includes:
Matching its electricity consumption worldwide with clean energy sources. For the first time, replenishing more fresh water globally than it withdrew, making important progress on its 2030 goal of being water positive across operations. Achieving 92% reuse and recycling of decommissioned cloud servers and components for the second consecutive year. Reaching a total of 40 gigawatts of clean power purchase agreements across 26 countries, with 19 gigawatts currently online. (Forty gigawatts is roughly enough power to serve 30-40 million typical U.S. homes at once.) Scrutiny over recent moves Microsoft’s sustainability disclosures come after a series of announcements and news reports that have raised concerns among climate advocates.
Last month, Microsoft and Chevron announced an agreement to build a natural gas facility in Texas with a 2.67 gigawatt capacity, providing dedicated electricity to the tech company for 20 years. In May, Bloomberg reported that Microsoft was considering scaling down or scuttling a pledge to match its electricity use with carbon-free power around the clock by 2030. In April, the New York Times reported that Microsoft was pausing future purchases of carbon removal credits, after years as the market’s top buyer. Nakagawa said the company has not canceled any canceled removal projects, though she did not provide specifics about new purchases going forward. “We’re just continuing to take a hard look at each of the deals that are coming through,” she said, and looking for “credible opportunities to scale.”
Asked about Microsoft’s commitment to purchasing clean energy 24/7 — an approach that would eliminate reliance on coal- or gas-powered energy when wind and solar aren’t available — Nakagawa declined to confirm it. “We still are looking towards opportunities around carbon-free electricity,” while focusing on the 2030 carbon negative goals, she said.
As to the natural gas deal, the chief sustainability officer said Microsoft has also contracted to purchase 4.7 gigawatts of renewable power in Texas alone and that the company evaluates its energy investments as part of a broader mix.
Looking for efficiencies elsewhere Even as data centers remain the prime driver of Microsoft’s rising energy use and emissions, the company points to other steps aimed at reducing the environmental footprint of the facilities.
That includes increasing the use of lower-carbon steel and concrete and incorporating mass timber into data center buildings. And In the past year, Microsoft has added a seventh Circular Center — one of several facilities worldwide where the company recycles and reuses electronics from data center operations.
Microsoft is also working with developers to use AI models more efficiently and build right-sized products. AI agents can review, test and improve code so it uses less energy when it runs, Nakagawa said.
“I definitely think there’s an opportunity here,” she said.
New York, New York--(Newsfile Corp. - July 9, 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/301528
Source: Bronstein, Gewirtz & Grossman, LLC
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Microsoft (MSFT 1.41%) has been a terrible investment in 2026. The stock has declined 21% year to date, and it has been a straight line down since 2026 began. To add injury to insult, Microsoft stock is now down around 30% from its all-time high set last October. It has been a nearly year-long run of Microsoft disappointment, but is now the time to buy the stock?
A few days ago, Microsoft hit a 52-week low, but it has rallied a bit since then. Still, it looks primed to deliver incredible upside, as it's a strong player in the artificial intelligence (AI) space and is taking a balanced approach to the major economic shift.
Image source: Getty Images.
Microsoft is a screaming deal Microsoft is approaching AI from several different angles. First, it is developing Copilot, its AI tool to assist users of its other software products. This has been a strong addition to Microsoft's lineup, helping push its AI annual recurring revenue to $37 billion, up 123% year over year in its most recent quarter.
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Another way Microsoft is thriving is from cloud revenue. Few companies have the computing resources available to build and run AI applications, so they rent them from cloud computing platforms like Microsoft Azure. Azure hosts countless generative AI models, so users can pick and choose which large language model (LLM) is right for them. Azure is growing rapidly, with 40% revenue growth during its last quarter.
While Azure is technically neutral about which AI model is used, Microsoft would prefer that its users deploy ChatGPT, the model from OpenAI. Microsoft is a major OpenAI investor and exchanged computing power for equity in OpenAI. This has led Microsoft to build up a massive 27% stake in OpenAI.With OpenAI projected to go public at a valuation of $1 trillion or more, this investment appears to be paying off for Microsoft.
All three of these are top reasons to invest in Microsoft, yet the stock is priced at dirt cheap levels.
Data by YCharts.
At less than 20 times forward earnings and well below its five-year average of 30.2, Microsoft looks like a screaming deal, especially with the S&P 500 trading for 21.7 times forward earnings. Microsoft is a fantastic stock pick that's on sale for no good reason. I won't be surprised to see Microsoft stock skyrocket sometime in July, especially with its earnings coming out later this month. That could be the catalyst it needs to kick-start its return, making now the perfect time to buy it.
Microsoft shares are experiencing downward pressure. What’s pulling MSFT shares down? Replacing OpenAI and AnthropicAccording to Bloomberg, tens of thousands of AI prompts in Excel and Outlook are now being completed each week using Microsoft’s internally built MAI (Microsoft AI) models — a scale of usage that hasn’t been previously reported. Previously, both applications relied more heavily on models from OpenAI and Anthropic.
Microsoft uses massive quantities of AI tokens across products like its workplace assistant Copilot. For now, the company receives a significant portion of that technology at a discount through its long-standing partnership with OpenAI — but that arrangement has a clock on it, and Suleyman’s team is working to ensure Microsoft isn’t exposed to whatever pricing the leading AI labs decide to charge once the partnership terms shift.
The company announced seven new MAI models at its Build conference in June, including one it says can match the coding abilities of Anthropic’s Opus 4.6 model at a reduced cost. MAI models are also now available within GitHub Copilot, and Suleyman has said a Microsoft-built transcription model will begin appearing in Teams and other products in the coming months.
Microsoft Shares DropMSFT Price Action: At the time of publication, Microsoft shares are trading 1.52% lower at $377.52, according to data from Benzinga Pro.
Image via Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Important Notice Regarding Alleged AI Product Misrepresentations and Concealed Copilot Deficiencies at Microsoft
, /PRNewswire/ -- SueWallSt notifies investors in Microsoft Corporation (NASDAQ: MSFT) that a class action lawsuit has been filed on behalf of shareholders who purchased securities between May 1, 2025 and January 28, 2026. Submit your information here. You may also contact Joseph E. Levi, Esq. at [email protected] or (888) SueWallSt.
Microsoft shares traded above $550 during the Class Period as the Company touted "best-in-class" AI capabilities and record Copilot adoption. The lead plaintiff deadline is August 11, 2026.
The Alleged AI Product Deception
The artificial intelligence sector has attracted hundreds of billions in enterprise spending, and Microsoft positioned itself at the center of that wave. Throughout the Class Period, the Company claimed its Copilot family of products enjoyed surging adoption, with management representing that 90% of the Fortune 500 used Microsoft 365 Copilot and that paid commercial seats grew 7% year-over-year to over $430 million. The lawsuit contends these statements concealed a far different reality.
How Copilot's Alleged Deficiencies Affected Investor Confidence
According to the complaint, Microsoft's Copilot products suffered from significant brand positioning failures, user experience shortcomings, data siloing constraints, computational capacity bottlenecks, organizational dysfunction, and interoperability problems. The action further alleges that:
Copilot's brand was fragmented through numerous launch versions across various consumer and enterprise applications with inconsistent features and unclear differentiation Data siloing prevented Copilot from delivering the "Work IQ" contextual intelligence that management claimed set the product apart from competitors Computational capacity constraints limited the product's ability to perform complex agentic workflows that executives publicly promoted Organizational problems hampered coordination between teams responsible for different Copilot iterations Interoperability failures undermined claims that Copilot seamlessly integrated across Outlook, Word, Excel, PowerPoint, and Teams The "freemium" to paid seat conversion pipeline was allegedly far weaker than management's representations suggested The Circular Investment Risk Allegedly Hidden from Shareholders
The lawsuit also contends that Microsoft downplayed the circularity embedded in its multibillion-dollar AI partnerships. The Company invested over $13 billion in OpenAI and committed up to $5 billion in Anthropic, while those same partners contracted to purchase billions in Azure services. This arrangement allegedly created concentration risk that management minimized even as it drove reported Azure revenue growth figures that the market relied upon.
Act now. Click here to learn more or call (888) SueWallSt.
"This case presents important questions about AI product disclosure obligations in the enterprise technology sector. When a company represents that its flagship AI offering is 'best-in-class' and enjoying record adoption, investors are entitled to know about material technical and organizational problems undermining those claims." -- Joseph E. Levi, Esq.
Submit your information to join this case or contact Joseph E. Levi, Esq. at (888) SueWallSt.
WHY SUEWALLST: SueWallSt is a brand of Levi & Korsinsky LLP. Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States.
Frequently Asked Questions About the MSFT Lawsuit
Q: What is the MSFT class action lawsuit about? A: A securities class action has been filed against Microsoft Corporation (NASDAQ: MSFT) alleging materially false and misleading statements about the Company's AI initiatives, Copilot products, and Azure cloud platform between May 1, 2025 and January 28, 2026. The complaint alleges Microsoft concealed significant technical and organizational problems while touting record AI adoption.
Q: Who is eligible to join the MSFT investor lawsuit? A: Investors who purchased MSFT stock or securities between May 1, 2025 and January 28, 2026 and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses, not on whether you still hold the shares.
Q: What do MSFT investors need to do right now? A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Contact SueWallSt, a brand of Levi & Korsinsky LLP, for a no-cost, no-obligation case evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible as an absent class member.
Q: What if I already sold my MSFT shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the class period and sold at a loss may still participate.
Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
Q: What specific misstatements does the MSFT lawsuit allege? A: The complaint alleges Microsoft made materially false or misleading statements regarding Copilot's adoption rates, technical capabilities, competitive positioning, and the return on investment for AI-related capital expenditures, while concealing brand positioning failures, data siloing, and computational capacity problems.
Q: How long will the lawsuit take to resolve? A: Securities class actions typically take two to four years from initial filing to resolution.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (888) SueWallSt
Fax: (212) 363-7171
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Integration Empowers Organizations with Seamless, Fraud-Resistant Identity Verification and Authentication Across All Environments July 09, 2026 09:03 ET | Source: 1Kosmos
ISELIN, N.J., July 09, 2026 (GLOBE NEWSWIRE) -- 1Kosmos, a leader in unifying identity proofing and passwordless authentication, today announced it has extended its existing partnership with Microsoft (Nasdaq: MSFT) as an official Entra Verified ID services and solution partner. This collaboration enables organizations to secure remote onboarding and establish enhanced digital trust using verifiable credentials issued by the 1Kosmos platform to eliminate hiring fraud, synthetic identities, and unauthorized account creation.
The 1Kosmos platform, integrated with Microsoft Entra Verified ID, offers an integrated solution for modernizing identity verification and is available on the Microsoft Security Store. 1Kosmos performs secure identity proofing by verifying government-issued credentials and matching them to a real-time biometric selfie with liveness detection, establishing high-assurance digital identities. This integration provides secure remote onboarding, ensuring the authenticity of users and strengthening identity assurance.
1Kosmos-Microsoft Entra Verified ID Capabilities
The 1Kosmos-Microsoft partnership enables customers to issue, hold, and verify cryptographically secure, tamper-evident digital identity credentials. Key features and benefits of the joint solution include:
Verifiable Credentials (VCs) & Decentralized Identity: Privacy-preserving digital identities backed by a decentralized private ledger for tamper-evident data and audit trails.Secure Remote Identity Proofing: Streamlined onboarding via verification of government IDs against live biometrics, certified to ISO/IEC 30107-3 and NIST IAL2/AAL2 standards.Seamless Entra Verified ID Integration: Facilitates identity issuance and verification, acting as an External Authentication Method (EAM) for Entra ID.Enhanced Fraud Prevention: Mitigates identity theft, synthetic identities, and account takeovers by binding verified identity to the user with advanced biometrics.Extended Passwordless Authentication: Provides strong, phishing-resistant passwordless access across environments beyond native Entra ID support (e.g., Mac, Linux, VPNs, PAM, legacy systems).Self-Service Password Reset & Account Recovery: Reduces IT Service Desk workload with biometric-backed self-service options for Entra ID, on-prem AD, and other accounts.Passwordless for Restricted Environments: Extends passwordless authentication to challenging use cases like kiosks and shared workstations using 1Kosmos 1Key biometric security keys. “Becoming a Microsoft Entra Verified ID partner reinforces our commitment to delivering the most secure and convenient identity solutions for employee onboarding,” said Mike Engle, Chief Strategy Officer for 1Kosmos. “This partnership provides organizations with a powerful, standards-based approach to remote onboarding and digital trust, ensuring robust and frictionless identity verification and authentication across their environments.”
“Strong partner ecosystems give customers the flexibility to choose the solutions that best meet their needs,” said Ankur Patel, Partner Group Product Manager at Microsoft. “We’re pleased to see 1Kosmos join the expanding set of identity verification partners supporting secure, high-assurance account recovery.”
For more information on the 1Kosmos - Microsoft Entra Verified ID solution for secure remote onboarding, please visit https://marketplace.microsoft.com/en-us/product/saas/onekosmosinc1744391571698.1kosmos_verification?tab=Overview .
About 1Kosmos
1Kosmos enables remote identity verification and passwordless multi-factor authentication for workers, customers, and residents to securely engage with digital services. By unifying identity proofing, credential verification, and strong authentication, the 1Kosmos platform prevents identity impersonation, account takeover, and fraud while delivering frictionless user experiences and preserving the privacy of users’ personal information.
The company conducts millions of authentications daily for major banks, telecommunications providers, technology and service providers, healthcare organizations, and retailers worldwide. 1Kosmos has raised more than $72M in venture capital funding, and is headquartered in Iselin, New Jersey. For more information, visit www.1kosmos.com and follow us on LinkedIn.
Media Contact:
Marc Gendron
Marc Gendron PR for 1Kosmos
617-877-7480 [email protected]
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/7a07c8de-329e-447e-9167-606551acdee4
Index Dow Jones -0,12 % na 52286,93 b., S&P 500 +0,32 % na 7506,42 b., Nasdaq Composite +0,53 % na 26008,92 b.
Technologické akcie dnes táhnou index S&P 500 nahoru, podpořeny silnou poptávkou po americkém IPO jihokorejského výrobce paměťových čipů SK Hynix. Nabídka je podle lidí obeznámených s danou záležitostí více než sedmkrát přepsána. Cena emise byla stanovena na 149 USD za jeden americký depozitní certifikát, přičemž akcie se mají začít obchodovat na burze v pátek.
Micron (+7,2 %) oznámil urychlení plánovaných investic do amerických výrobních závodů a technologií. Celkové výdaje by měly do roku 2035 přesáhnout 250 mld. USD, oproti původně plánovaným 200 mld. USD. Cílem je vyrábět 40 % veškeré paměti DRAM v USA, přičemž první výstup z výrobní linky v Idahu se očekává v polovině roku 2027.
Naopak akcie Paramount Skydance klesají 7,8 % poté, co analytická společnost Arete Research snížila své doporučení na „prodat" a stanovila nejnižší cílovou cenu na trhu. Důvodem je obava z vysokého zadlužení, které by společnosti přinesla případná fúze s Warner Bros. Discovery.
Akcie IBM a Microsoftu také oslabují poté, co Bloomberg News informoval, že Starbucks vyvíjí vlastní interní nástroje s pomocí umělé inteligence, které by mohly nahradit software nakupovaný od těchto společností. Řetězec káváren buduje alternativy k systému Microsoftu pro sledování zásob a nástroji IBM pro správu údržby. Část nového softwaru by mohla být nasazena do konce příštího roku, pokud projde testováním.
Výrobce nápojů a potravin PepsiCo (-4,8 %) zveřejnil výsledky hospodaření za druhé čtvrtletí roku fiskálního roku 2026. Organické tržby vzrostly o 2,4 %, čímž mírně zaostaly za odhadem analytiků, přičemž segment potravin v Severní Americe organicky klesl o 2 %. Tržby a jádrový zisk na akcii odhady mírně překonaly a společnost potvrdila celoroční výhled organického růstu tržeb.
Společnost Meta Platforms (-2,7 %) plánuje od září zahájit výrobu vlastního AI čipu, a to jako součást plánu na navýšení celkové výpočetní kapacity na 14 gigawattů v příštím roce. Vyplývá to z interního mema, které měla agentura Reuters k dispozici.
Index S&P 500 +0,32 % na 7506,42 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Informační technologie +1,5 % Nezbytná spotřeba -1,8 % Průmysl +0,9 % Komunikační služby -1,5 % Utility +0,2 % Zbytná spotřeba -0,7 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Lam Research Corp (LRCX) +11 % Paramount Skydance Corp (PSKY) -7,8 % Lumentum Holdings (LITE) +10,0 % PepsiCo (PEP) -4,8 % Applied Materials (AMAT) +9,6 % FactSet Research Systems (FDS) -4,4 % KLA Corp (KLAC) +9,4 % Palantir Technologies (PLTR) -4,0 % Ciena Corp (CIEN) +8,6 % Gartner (IT) -3,8 % Zdroj: Bloomberg
Microsoft’s warning that the quantum-security clock is moving faster has put a beaten-down quantum stock back on Wall Street’s radar.
Quantum Computing Inc. NASDAQ:QUBT was trading around $8.75 on Thursday, while an average analyst price target on the stock is $18.33, implying roughly 111% upside current levels.
The setup is compelling, but risky, as QUBT is a speculative quantum and security trade, not a proven winner.
The latest catalyst is not coming from Quantum Computing itself, but from Microsoft.
Microsoft said it is accelerating its Quantum Safe Program and now aims to transition products and services to post-quantum cryptography by 2029.
Azure CTO Mark Russinovich wrote that advances in quantum research have “shifted the risk horizon” and that cryptographically relevant quantum computers could arrive sooner than previously expected.
In simple words, the risk is not that quantum computers are breaking encryption today, but attackers can steal encrypted data now and decrypt it later, once quantum machines become powerful enough.
Microsoft called this the “harvest now, decrypt later” problem and said organisations are already prioritising long-lived sensitive data for protection.
The company’s transition plan focuses on practical plumbing with TLS 1.3, crypto-agility, certificate trust chains, code signing, hardware-backed protections and data protection.
That matters for investors because it suggests quantum-safe security is moving from research debate to enterprise budget item.
Quantum Computing Inc. is being watched because it is not pitching itself only as a quantum-computing hardware story.
The portfolio spans integrated photonics, quantum optics, cybersecurity, sensing and secure communications.
Its March 2026 acquisition of NuCrypt added quantum communications technology, in a deal valued at $5 million.
NuCrypt brought systems, products and patents tied to quantum optics, RF-photonics and photonic signal processing.
QUBT then added more manufacturing depth in June by completing its acquisition of NHanced Semiconductors.
The company said the deal provides a foundation for scalable chip manufacturing of its quantum and photonics technologies, supporting commercialisation and a vertically integrated platform spanning research, development and manufacturing.
That is why the Microsoft warning matters. If enterprises, governments and cloud providers start spending more aggressively on post-quantum security, investors may look for smaller pure-play companies with exposure to quantum photonics, secure communications and related infrastructure.
Rosenblatt analyst John McPeake has made that bull case directly.
He said QCi has “legitimate quantum assets across photonics, compute, security, and sensing,” along with thin-film lithium niobate fabrication capabilities that could support integrated quantum photonics, nonlinear optics and optical waveguides.
Analysts see upside, but the stock remains speculativeThe analyst math is where the projected upside comes from.
Benzinga lists a $18.33 consensus price target for QUBT, with a $30 high target from Ascendiant Capital and a $10 low target from Cantor Fitzgerald.
From a stock price near $8.75, that average target points to roughly 111% upside, while the Street-high target implies far more.
Ascendiant Capital’s Edward Woo has been among the more bullish analysts. He reiterated a Buy rating and raised his target to $30 from $27.
Woo said Wall Street’s revenue expectations for QUBT appear achievable, based partly on management conversations and the company’s acquisition-led revenue growth.
Lake Street also remains constructive as the firm reiterated a Buy rating and $16 target after the NHanced acquisition, saying the deal accelerates QUBT’s shift from research and prototyping toward scalable commercial production.
At the same time, the firm noted that the financial contribution from the deal has not yet been quantified, which is an important caveat.
Todd Sohn je hlavní technický analytik ve společnosti Strategas, který v rozhovoru se Stevem Eismanem hovořil o svém pohledu na současné a budoucí dění na trzích. Grafy podle něj rychle a přehledně vypráví o tom, co se děje. Nyní je podle něj zřejmé, že trhem hýbou hlavně polovodiče. K softwaru čekal, že to nejhorší může být už za tímto sektorem. Sektor ale stále působí chaoticky a stále nemusí být v bodě, kdy představuje dobrou nákupní příležitost.
Eisman následně odpovídal na dotaz týkající se akcie GE Vernova, kterou on sám podle svých slov vlastní již dlouhou dobu a je jeho oblíbená. Sohn k ní řekl, že kdyby viděl graf s vývojem ceny bez toho, aby věděl, o jakou společnost jde, viděl by v něm možnou blížící se příležitost k nákupu. Před časem byla totiž akcie překoupená, od té doby došlo ke konsolidaci a vybírání zisků. „V tuhle chvíli graf vypadá dobře.“ Svou roli ale hrají i jiné faktory, třeba výrazný list popularity bot společnosti Hoka, která se opírá i o to, že je doporučují pediatři.
Nike čelí problémům už delší dobu a „jde o velkou loď, u které se kurz nemění tak rychle. Konkurence je navíc intenzivní a nespí včetně zmíněné Hoky či New Balance. „Nike se vzdala určitého prostoru na regálech a nová konkurence jej okamžitě zabrala.“
K Amazonu Eisman řekl, že tuto akcii vlastní, ale graf její ceny podle něj nevypadá moc dobře. Sohn dodal, že jsou jak mnohem horší, tak i mnohem lepší, tenhle je někde uprostřed. Meta je „mnohem chaotičtější“, Sohn byl podle svých slov k této akcii za posledních deset let často skeptický, ale vždy se vzchopila. Nyní by proti ní hovořilo mimo jiné to, že zatímco celý trh dosahuje na nová maxima, Metě se to už nějakou dobu nepodařilo. K tomu plovoucí dvousetdenní průměr neroste (tak jako třeba u zmíněné GEV). A nyní dokonce obrací dolů.
Oracle vidí expert podobně jako software. Může se odrážet od dna, ale „na trhu je hodně lepších příležitostí“. Microsoft je „v podobné pozici jako meta, ne-li slabší.“ Jiným příběhem je Google. Ten byl hodně překoupený, nyní dochází k vybírání zisků a je šance, že „bude kupovatelný“.
Sohn následně hovořil o boomu zapáčených ETF, které poskytují znásobené zisky na akciích, ale to samé platí o ztrátách. Populární jsou také tématické ETF, které se zaměřují na konkrétní oblasti a příběhy včetně „vesmíru“. U finančních titulů nyní podle experta panuje hodně skepse, která z velké části pramení z negativních zpráv týkajících se úvěrů poskytovaných mimo trhy. Sohn ale tuto skepsi k financím vidí jako možný býčí signál dalšího vývoje. Chuť na sektory zdravotní péče „po krátkém trvání zase vyprchala“ a jde po delší dobu o „ten nejvíce frustrující sektor“. Jeho podíl na celkové kapitalizaci trhu postupně znatelně klesl a „situace je tak špatná, že lze uvažovat o tom, že už je dobrá.“ Tedy že také dojde k obratu a „normalizaci“.
Sohn rovněž tvrdí, že „kvalita jen zabírá místo v investičních portfoliích“. Nyní jsou totiž ve skupině kvalitních akcií a firem zejména ty technologické, což znamená, že kvalita vůbec nepůsobí jako něco, co by mělo diverzifikovat rizika. ETF zaměřující se na tuto oblast naopak vykazují vysokou korelaci s pohybem celého trhu. „Proč bych to potřeboval, když to dělá to samé jako celý trh? To si můžu rovnou koupit index.“
New York, New York--(Newsfile Corp. - July 8, 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/304517
Source: The Rosen Law Firm PA
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In the latest close session, Microsoft (MSFT - Free Report) was down 1.41% at $383.34. This change lagged the S&P 500's 0.28% loss on the day. Meanwhile, the Dow experienced a drop of 1.09%, and the technology-dominated Nasdaq saw an increase of 0.2%.
Shares of the software maker have depreciated by 3.61% over the course of the past month, underperforming the Computer and Technology sector's loss of 1.22%, and the S&P 500's gain of 1.64%.
The investment community will be closely monitoring the performance of Microsoft in its forthcoming earnings report. On that day, Microsoft is projected to report earnings of $4.21 per share, which would represent year-over-year growth of 15.34%. Alongside, our most recent consensus estimate is anticipating revenue of $87.44 billion, indicating a 14.39% upward movement from the same quarter last year.
MSFT's full-year Zacks Consensus Estimates are calling for earnings of $17.33 per share and revenue of $329.26 billion. These results would represent year-over-year changes of +27.05% and +16.87%, respectively.
Investors might also notice recent changes to analyst estimates for Microsoft. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.02% increase. Microsoft currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Microsoft is currently exchanging hands at a Forward P/E ratio of 20.16. This signifies a premium in comparison to the average Forward P/E of 16.55 for its industry.
Meanwhile, MSFT's PEG ratio is currently 1.22. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 1.27.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 103, putting it in the top 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Microsoft (MSFT 1.41%) is undertaking yet another cost-cutting initiative.
*Stock prices used were the afternoon prices of July 6, 2026. The video was published on July 8, 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.
REDMOND, Wash., July 8, 2026 /PRNewswire/ -- Microsoft Corp. will publish fiscal year 2026 fourth-quarter financial results after the close of the market on Wednesday, July 29, 2026, on the Microsoft Investor Relations website at https://www.microsoft.com/en-us/Investor/. A live webcast of the earnings conference call will be made available at 2:30 p.m. Pacific Time.
Microsoft (Nasdaq "MSFT" @microsoft) creates platforms and tools powered by AI to deliver innovative solutions that meet the evolving needs of our customers. The technology company is committed to making AI available broadly and doing so responsibly, with a mission to empower every person and every organization on the planet to achieve more.
Microsoft remains a Strong Buy as the market misreads recent headlines and undervalues its AI-driven strategy. Meta Compute's entry pressures neoclouds, not MSFT, and validates AI infrastructure pricing above build cost, supporting MSFT's CapEx returns. The MAI model insourcing directly addresses gross margin compression, with Copilot and product consolidation enhancing cost efficiency and future profitability.
Microsoft (MSFT 1.34%) stock fell after the company announced layoffs in its Xbox unit. Despite double-digit increases in revenue during the third quarter of fiscal 2026 (ended March 31), revenue in its Xbox unit decreased by 5% annually in that quarter, likely drawing attention to that segment.
The restructuring announcement is likely welcome news after the recent drop and could improve the company's financial performance. Nonetheless, investors should probably not expect a dramatic recovery in the tech stock because of this move. Here's why.
Image source: The Motley Fool.
Microsoft's ongoing struggles Admittedly, the Xbox unit looks like the obvious target for a restructuring, as it was Microsoft's worst-performing unit. Also, the division that oversees the Xbox unit, "More Personal Computing," reported a 1% annual decrease in revenue in fiscal Q3, even as Microsoft's overall revenue rose by 18% during the quarter.
To get Xbox on track, Microsoft is laying off 4,800 employees, a 2.1% reduction in its overall workforce. Also, four studios will go independent. It is quite possible these moves will stem the revenue declines for both Xbox and More Personal Computing overall.
Moreover, the company's P/E ratio has fallen to 23, just above multiyear lows. That arguably makes it a deep value stock, increasing the odds of a turnaround in Microsoft's stock price.
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Unfortunately for investors, the cloud has long driven the growth in Microsoft stock. Since Microsoft Cloud revenue increased by 29% over the last year, one might think the stock should be surging.
However, the earnings report glosses over challenges the company has faced with AI. Like its peers, Microsoft has spent heavily on capital expenditures (capex), allocating over $80 billion in the first nine months of fiscal 2026.
Unfortunately, Microsoft has relied heavily on OpenAI, which has burned cash at an alarming rate. Also, with around 45% of Microsoft's $627 billion backlog tied to OpenAI, Microsoft faces significant uncertainty.
Additionally, adoption of Copilot, Microsoft's AI-powered assistant, has underwhelmed the market with only about 4.7 million paid subscriptions in fiscal Q2, less than the 9 million for ChatGPT. This calls into question whether it can compete with OpenAI or peers such as Anthropic's Claude or Gemini, developed by Google parent Alphabet.
That factor also makes it less likely investors are watching the Xbox unit closely, which could mean the restructuring may go unnoticed.
Expect few changes in Microsoft stock Ultimately, restructuring the Xbox unit is unlikely to help Microsoft's stock.
On the surface, addressing the worst-performing business unit could make its financials appear more sound. Amid the company's falling P/E ratio, such a move should reduce stock losses.
Unfortunately, the company's deepest struggles with Microsoft's stock appear to stem from its AI performance relative to competitors'. Even though its AI adoption has grown, it appears that growth has lagged that of Anthropic or Google. That makes it increasingly likely that Microsoft will need to address that competitive gap for the stock to outperform the market for the foreseeable future.
