When it comes to tracking the trading activity of members of Congress, Rep. Cleo Fields (D-La.) is one of the most followed names based on the Magnificent Seven stocks and millions of dollars of trades he makes. A recent disclosure showed continued buying of Magnificent Seven names, along with a new quantum pick.
Cleo Fields New Stock TradesFields shared several new stock trades for June, as reported by the Benzinga Government Trades page.
Fields reported the following:
June 15: Bought $1,000 to $15,000 in Alphabet Inc (NASDAQ:GOOG) stock
June 11: Bought $1,000 to $15,000 in Microsoft Corp. (NASDAQ:MSFT) stock
June 11: Bought $1,000 to $15,000 in Microsoft Corporation stock
June 4: Bought $1,000 to $15,000 in Quantinuum Inc (NASDAQ:QNT) stock
Investors familiar with Fields know he loves buying Magnificent Seven stocks. The purchase of Quantinuum is the trade that draws attention.
Quantinuum recently went public, after being owned by Honeywell for years, and could be one of the new quantum bets on a sector that has seen explosive growth and attention from investors.
While Fields doesn’t make many trades outside of Magnificent Seven stocks or large-cap tech such as AMD and Netflix, some trades that fit this category are watched closely by investors.
Fields Trading HistoryFields has spent millions of dollars buying up Magnificent Seven stocks.
In 2026, the congressman has mainly been buying Alphabet and Microsoft, while also investing in Apple and Meta Platforms. Those four stocks are his current top Magnificent Seven picks.
Data from Quiver Quantitative shows that Fields has made over $22 million in trades, including $21.58 million in trading volume in 2025.
In 2026, Fields has so far spent around $1.13 million on stocks.
Photo Courtesy: metamorworks from Shutterstock
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Microsoft (MSFT - Free Report) closed the most recent trading day at $368.57, moving -1.18% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 1.18% for the day. On the other hand, the Dow registered a gain of 0.59%, and the technology-centric Nasdaq increased by 2.07%.
Shares of the software maker witnessed a loss of 17.16% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 5.33%, and the S&P 500's loss of 2.9%.
Market participants will be closely following the financial results of Microsoft in its upcoming release. It is anticipated that the company will report an EPS of $4.21, marking a 15.34% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $87.46 billion, showing a 14.41% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $17.33 per share and revenue of $329.27 billion, which would represent changes of +27.05% and +16.88%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Microsoft. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.03% lower. Microsoft presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Microsoft is currently exchanging hands at a Forward P/E ratio of 21.53. This expresses a premium compared to the average Forward P/E of 14.66 of its industry.
It's also important to note that MSFT currently trades at a PEG ratio of 1.3. 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 1.3.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 157, finds itself in the bottom 36% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Last week, Michael Burry disclosed via Substack that he had bought December 2028 LEAP call options on Microsoft with strikes near $700 struck well above the roughly $356 to $360 level the stock was trading at. The actual trade is more interesting, and considerably more constrained, than “Big Short guy goes long Microsoft (NASDAQ:MSFT | MSFT Price Prediction).”
Burry bought a deeply out-of-the-money, long-dated option on Microsoft shares, which is a very different animal from owning the equity outright.
What the LEAP position actually is A LEAP is a listed call option with an unusually distant expiration, in this case December 2028. Burry paid a premium for the right, not the obligation, to buy MSFT at roughly $700 per share by then. With the stock recently at $370 after a 22% year-to-date decline and a 25% drop over the past year, that strike is far above current levels. The position size is genuinely unknown. Scion no longer files 13Fs, the Substack disclosure does not include contract counts, and any dollar figure floating around is a guess.
The structure tells you something the headline does not. LEAPs offer convex, capped-downside exposure. If MSFT never crosses roughly $700 plus the premium paid, the options expire worthless. If it overshoots, the payoff is leveraged. Burry is renting upside on a clock.
The contrarian bull logic, and where the Street agrees Microsoft is down meaningfully from 2025 highs while the underlying business has accelerated. Q3 FY2026 revenue grew 18.3% to $82.89 billion, EPS of $4.27 beat the $4.07 consensus, Azure grew 40%, and the AI business surpassed a $37 billion annualized run rate, up 123% year over year. Commercial remaining performance obligations nearly doubled to $627 billion, which is contracted future revenue, not a sentiment metric.
Sell-side opinion lines up with the direction, if not Burry’s specific strike. Forty analysts rate the stock Buy and twelve rate it Strong Buy against three Holds and zero Sells, with an average price target of $561.11. The restructured OpenAI partnership, with a roughly 27% stake valued near $135 billion and IP rights extended through 2032, plus an incremental $250 billion Azure commitment, underwrites the platform story.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Microsoft didn't make the cut. Grab the names FREE today.
The risk, and what it says about Burry’s broader 2026 playbook For these LEAPs to pay, Microsoft has to clear $700 plus premium by December 2028. From today, that is a substantial move. Anything less, including a perfectly fine 30% rally back to old highs, leaves the options worthless at expiration. This is the asymmetry Burry is buying, and the asymmetry retail should understand before mimicking it.
The trade fits a pattern. Burry has been going long beaten-down names like Microsoft, Adobe, and PayPal while shorting crowded AI favorites including Nvidia and Palantir. So the trade is a pair. He is long the franchise the market has cooled on, and short the names the market has overheated on.
A measured takeaway If you are a retirement-focused investor, the readable signal is the thesis itself. Burry is saying Microsoft’s drawdown looks overdone relative to 23% net income growth and a doubling RPO. Buying MSFT shares expresses that view with no expiration.
Buying 2028 LEAPs at a $700 strike expresses a much narrower view, on a clock, with a binary outcome. Copying the instrument without copying the conviction, or the position-sizing discipline you cannot see, is the part that gets retail investors hurt.
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Microsoft (MSFT 1.13%) has not been a highly valued stock by the market lately. While the majority of the market has notched new all-time highs within the past year, Microsoft has floundered. It's now 35% down from its all-time high, making it look like a potentially great stock to buy on the dip.
However, just because a stock is on sale doesn't mean that it's cheap. Let's take a look at Microsoft's stock price and see if you should consider buying its shares now.
Image source: Getty Images.
Microsoft rarely gets this cheap Microsoft is a massive tech conglomerate best known for its business productivity software. However, its business is much broader than that, as it owns LinkedIn, runs a thriving cloud computing service, and owns a video game company. But as with every company in today's market, everyone wants to know what Microsoft is doing with artificial intelligence (AI).
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Fortunately, Microsoft has an AI strategy that appears to be working out.
It has incorporated AI productivity tools into its various applications through Copilot, which has reached a $37 billion annual run rate and is growing at a 123% pace. Microsoft Azure has also become a popular platform for building AI applications. In fact, many of OpenAI's (the makers of ChatGPT) models are trained and run on Azure. During the third quarter of fiscal year (FY) 2026 (ending March 31), Azure's growth rate was 40%. Despite these strong business units, the market isn't in love with Microsoft's stock, which has deeply sold off. But I think that's a mistake.
Microsoft's stock is unbelievably cheap from many viewpoints, and now is the perfect time to pounce. From an earnings standpoint, this is the cheapest Microsoft has been over the past decade.
MSFT PE Ratio data by YCharts
Microsoft has a healthy earnings growth rate (its diluted earnings per share (EPS) rose 23% in its most recent quarter), so if Microsoft's stock price stays flat, the stock will continue to get cheaper.
Sometimes earnings can be skewed due to one-time events, but cash flow metrics are normally a bit more stable. From an operating cash flow perspective, Microsoft isn't quite at decade lows, but it's very close.
MSFT Price to CFO Per Share (TTM) data by YCharts
Microsoft clearly doesn't get this cheap all that often, and with the strong success its business is seeing, I think it's a no-brainer buy today. Smart investors like billionaire Bill Ackman took a $2 billion position during the first quarter of the calendar year, and the stock is now cheaper than at any point in that quarter. I think this clearly marks Microsoft as a smart buy, and long-term investors will be happy they bought shares today.
Investors are entering the second-quarter earnings season focused on whether heavy artificial intelligence spending by major technology companies will begin translating into stronger revenue growth, according to Wedbush Securities analysts.
Wedbush wrote that recent weakness in large-cap technology stocks reflects growing investor concerns over the timing of returns from record AI infrastructure investments rather than a deterioration in the long-term outlook.
"We are going through another 'gut check' few weeks ahead for the tech trade as tech investors await a very important Q2 earnings season in July to further validate the AI Revolution buildout," the firm wrote.
Wedbush noted that companies including Microsoft Corp (NASDAQ:MSFT), Alphabet Inc (NASDAQ:GOOG), Amazon.com Inc (NASDAQ:AMZN), Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB), Nvidia Corp (NASDAQ:NVDA, XETRA:NVD), Oracle Corp (NYSE:ORCL, XETRA:ORC), and Palantir Technologies Inc (NYSE:PLTR) have come under selling pressure as investors question when elevated capital expenditures will begin generating meaningful revenue growth.
"We are in an 'air pocket stage' right now where the $700 billion of Big Tech cap-ex this year is fueling the AI buildout," Wedbush wrote. The firm added that investors are becoming increasingly impatient as companies such as Microsoft and Meta continue investing heavily while waiting for broader monetization of AI initiatives.
The firm argued that the current period represents a transition phase, with data center and computing capacity expanding ahead of expected growth in enterprise AI adoption. It described the environment as "short-term pain for long-term gain" and maintained that the recent pullback has created buying opportunities.
Wedbush also pointed to rising compute and memory costs as another source of market concern, particularly after recent price increases announced by Apple Inc (NASDAQ:AAPL, XETRA:APC) raised questions about the affordability of large-scale AI deployments.
However, the firm wrote that those cost pressures should ease over the coming year as AI hardware, enterprise applications, and physical AI deployments expand, adding that the current uncertainty is part of a longer investment cycle it views as being in "Year 3 of a 10-year AI buildout."
The "Magnificent Seven" continue to drive market momentum, but the landscape is shifting from a speculative infrastructure buildup to a rigorous execution phase. For long-term investors, the smart move is to target companies with platform lock-in, balance sheet flexibility, and highly scalable monetization models.
Three specific names stand out if you want to put cash to work in the Mag 7 right now.
Image source: Getty Images.
1. Alphabet Alphabet (GOOGL +4.62%) (GOOG +4.78%) has successfully turned its investments in artificial intelligence (AI) into meaningful financial gains. The company has integrated Gemini models into its core search and services segments, which drove a 19% year-over-year increase in search revenue in the recent quarter alone to $60.4 billion.
This digital ecosystem continues to generate predictable capital. Google Cloud is a key growth engine as businesses shift their workloads to AI. In the latest quarter, Google Cloud revenue increased by 63% year over year to $20 billion, while operating income just for that segment more than tripled to $6.6 billion.
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Alphabet is also establishing its position as a leader in autonomous mobility through Waymo, which now provides over 500,000 paid robotaxi rides each week across 10 U.S. cities and is rapidly expanding. Supported by a roughly $460 billion cloud backlog, Alphabet remains a resilient choice for long-term tech investors looking for a profitable tech business at a reasonable valuation.
2. Meta Platforms Meta Platforms (META +2.84%) is projecting capital expenditures in the range of $125 billion to $145 billion in 2026. Meta uses advanced AI and machine learning models across its family of apps to optimize ad targeting.
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This optimization increased Q1 revenue by 33% year over year to $56.3 billion and resulted in a 61% increase in net income to $26.8 billion. Meta's open-source Llama AI framework commoditizes rival software and establishes its own architecture as a global developer standard. By offering its AI models for free, Meta encourages outside engineers to optimize its code at no cost to the company.
This crowdsourced engineering addresses vulnerabilities and reduces processing costs more quickly than any closed system. Meta can then redirect its large cash reserves into highly targeted ad tools. This makes it less likely for advertisers to switch platforms. While Meta is working on a range of other projects, including its Meta FAIR (Fundamental AI Research) division and wearables, the core ad engine is still driving the train for the business and the stock.
3. Microsoft Microsoft (MSFT 0.96%) has one of the most resilient enterprise software ecosystems on the planet. Once a business integrates its daily workflows into Windows, Office, and Azure, switching to a competitor becomes risky and expensive.
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Microsoft uses this leverage to cross-sell its Copilot automation tools as a premium software tier. This compounding model was evident in its latest quarterly results. Total revenue grew by 18.3% year over year to a record $82.9 billion. Azure revenue growth accelerated to 40% as corporations sought AI compute and storage clusters.
Once an organization integrates its data and compliance protocols into Azure, Microsoft uses this lock-in to capture growing corporate IT budgets. Despite large data center construction costs, Microsoft maintained an efficient 46% operating margin and generated $32 billion in net income in the recent quarterly readout, up 23% from the prior year.
Gov. Bob Ferguson announcing the new Economic Development Council. (Washington Office of Financial Management Photo) Gov. Bob Ferguson last week recruited top executives from Microsoft, Amazon, T-Mobile, Boeing and other major employers to help shape Washington state’s economic strategy, launching a new advisory council as concerns mount that the state is becoming less competitive for business.
The 26-member Governor’s Economic Development Council is the first such governor-led economic advisory body in roughly two decades, reviving an approach last used under former Gov. Christine Gregoire in 2006. The group includes leaders from technology, aerospace, organized labor, higher education, tribal governments, ports and economic development organizations who will advise the governor on policies aimed at strengthening Washington’s economy. (See full list below).
One missing ingredient: No members from Washington’s venture capital or startup ecosystem are on the council, even though they are often considered the bench strength of a growing economy.
The announcement comes as executives, startup founders and business organizations have increasingly warned that higher taxes, rising costs, permitting delays and an uncertain regulatory environment are making Washington a more difficult place to build and grow companies. Ferguson recently signed the so-called “millionaires tax” — a proposed 9.9% tax applied to taxable, personal annual income that exceeds $1 million.
Some of the region’s wealthiest and most prominent entrepreneurs — including Zillow and Expedia co-founder Rich Barton; Amazon founder Jeff Bezos and former Starbucks CEO Howard Schultz — have publicly announced moves out of Washington state in recent years.
Starbucks also recently announced a major expansion in Nashville, and Montana Gov. Greg Gianforte of earlier this month announced that Sedro Wooley, Wash.-based Janicki Industries chose Great Falls for the site of an $800 million manufacturing center expected to create 1,000 jobs.
“Washington is our home, and that is not changing,” said John Janicki, president of Janicki Industries, in a press release. “Our footprint in Washington has continued to grow but is slowing due to ever-increasing regulations and lack of business understanding at an executive and legislative level.”
Meanwhile, a recent survey from the Association of Washington Business found that 24% of businesses are considering a relocation out of the state, up from 17 percent in the prior quarter.
Washington’s economic climate was also one of the reasons why GeekWire recently traveled to Cleveland, where we explored how the Midwestern city was positioning itself for a changing economy, and the lessons that Washington could learn from it.
“We cannot take our strength for granted,” Ferguson said in announcing the council. “I’m launching a historic convening of top leaders from around Washington state to help guide the next chapter of economic prosperity for our state.”
The council will help develop Washington’s long-term economic strategy, identify opportunities to create family-wage jobs, evaluate the state’s competitiveness against other states and global markets, recommend ways to attract new employers and review regulatory barriers that may be slowing economic growth. The group will meet quarterly and submit recommendations to the governor.
The council’s creation comes after months of growing unease within Washington’s technology and business community.
GeekWire has reported extensively on criticism surrounding this year’s tax package, which raised business taxes on many employers and expanded the sales tax to additional services, including advertising. Business groups warned the measures could discourage investment and expansion in Washington, while lawmakers argued the revenue was necessary to close a multibillion-dollar budget gap and preserve essential public services.
The broader economic backdrop remains mixed. Washington continues to rank among the nation’s strongest state economies and remains home to global leaders in artificial intelligence, cloud computing, aerospace and life sciences. At the same time, employers are navigating higher borrowing costs, federal policy uncertainty, trade tensions and intensifying competition from states aggressively courting new investment.
As one example, Ohio Gov. Mike DeWine recently encouraged people and businesses from places like Washington to consider Ohio.
“Come work in Ohio,” DeWine noted after a question from GeekWire about advice he’d provide to Washington. “You will not find a better place, better people, quality of life. Cost of living is low compared to the two coasts.”
In the press release announcing Janicki Industries’ Montana expansion, Gianforte was a bit more blunt.
“The Treasure State is proud to attract job creators like Janicki that choose to expand from high-tax, high-regulation blue states to take advantage of our unmatched quality of life, lower taxes, and strong workforce,” he said. “I look forward to seeing the impact of this significant investment.”
Ferguson has sought to make economic development a central priority during his first year in office. His administration has highlighted efforts to speed permitting across state agencies, increase housing production and invest in sectors including quantum computing, advanced manufacturing and clean energy.
However, some have argued that the governor’s efforts come a bit too late, and are only be instituted in response to criticism. Gov. Ferguson shot back at that contention in the press conference last week, saying he doesn’t worry about critics and he’s interested in “solving problems.”
“I didn’t wake up last week and think about forming this council,” he said. “To be clear, as I mentioned in my talking points, this was an effort we really started last year and was an outgrowth of having conversations with many of the folks behind me and many other people across the state.”
Whether the new council ultimately leads to meaningful policy changes remains to be seen. But its creation sends a signal that Ferguson intends to place economic competitiveness — and closer engagement with Washington’s business community — near the center of his administration.
Amazon Chief Global Affairs and Legal Officer David Zapolsky, a member of the newly created council, called the formation of the group an “important step.”
“When the public and private sectors align around shared goals, communities benefit,” he said.
Governor’s Economic Development Council members:
Michael Cade — Incoming Board Chair, Washington Economic Development Association; Executive Director, Thurston County Economic Development Council Dr. Betsy Cantwell — President, Washington State University Leonard Forsman — Chairman, Suquamish Tribe Denny Heck — Washington State Lieutenant Governor Kris Johnson — President, Association of Washington Business Trevor Johnson — CEO, Blackwood Homes Dr. Robert Jones — President, University of Washington Mike Katz — Chief Business & Product Officer, T-Mobile Mary Kipp — President & CEO, Puget Sound Energy Heather Kurtenbach — Executive Secretary, Washington State Building & Construction Trades Council Dr. Thomas J. Lynch Jr. — President & Director, Fred Hutchinson Cancer Center Julianna Marler — CEO, Port of Vancouver West Mathison — President & CEO, Stemilt Growers Stephen Metruck — Executive Director, Port of Seattle Denise Moriguchi — President & CEO, Uwajimaya Stephanie Pope — President & CEO, Boeing Commercial Airplanes Heather Rosentrater — President & CEO, Avista Michael Senske — Chairman & CEO, Pearson Packaging Systems April Sims — President, Washington State Labor Council, AFL-CIO Brad Smith — Vice Chair and President, Microsoft Rachel Smith — President, Washington Roundtable Bill Sterud — Chairman, Puyallup Tribe Shane Tackett — President and Chief Financial Officer, Alaska Airlines Monique Valenzuela — Executive Director, Ventures Dr. Rebekah Woods — President, Columbia Basin College David Zapolsky — Chief Global Affairs & Legal Officer, Amazon
LOS ANGELES, June 29, 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.
by Mary Jo Foley on Jun 29, 2026 at 10:44 amJune 29, 2026 at 10:44 am
Jacob Andreou speaks onstage during TechCrunch Disrupt 2023. (Photo by Kimberly White/Getty Images for TechCrunch, CC By 2.0) It’s not surprising that Microsoft is looking to turn its Copilot platform into a “Super App,” given that its rivals are doing the same. But Microsoft is going about the task in a way that doesn’t follow its usual playbook, by putting a big bet on a consumer-savvy hire from the outside with some feather-ruffling ways.
The company’s newly minted Copilot Executive Vice President Jacob Andreou came to Microsoft from Greylock Partners and before that, Snapchat-maker Snap. Andreou currently oversees more than 11,000 Microsoft employees, according to a recent profile in Fortune.
Microsoft is bringing onboard another former Snap (and Discord) vice president, Peter Sellis, to help, GeekWire has learned. Sources say Sellis will be leading Copilot Design, Growth and Engineering, reporting to Andreou.
Andreou is part of a recently formed Copilot Leadership Team. His charter is to lead the “Copilot experience” by driving design, product, growth and engineering, as outlined in a March 2026 reorg memo from CEO Satya Nadella. He is one of a small group charged with shaping the future of Copilot, alongside others focused on the underlying Copilot platform and AI models.
Given Andreou’s Snap background, his plan to meld Microsoft’s consumer and enterprise Copilot experiences makes sense. It won’t be a snap, however. (See what I did there?)
Even though both share the Copilot brand, consumer Copilot and Microsoft 365 Copilot don’t work the same way or use the same data sources or architecture. To boot, Microsoft hasn’t had a lot of luck with this kind of consumer-enterprise unification, as evidenced by the low interest in and uptake of its free, consumer-focused Teams product compared to its business-focused Teams collaboration offering.
The 33-year-old, Los Angeles-based Andreou seemingly is undaunted by the challenge and is pushing some employees to clock 12-hour days to keep up with younger, AI-focused companies, Fortune reports.
Microsoft was infamous for requiring employees to work long hours and weekends during crunch times leading up to delivering Windows NT and Windows 95, but not so much in recent years. Microsoft is known as a place where outsiders often struggle to thrive compared to those who climb the corporate ladder for years, making Andreou’s approach feel even riskier.
Andreou has been a big backer of the Tasks productivity layer in consumer Copilot, which is still in public preview. Tasks, which enables Copilot to handle actionable items, is similar to the recently released Copilot Cowork layer that is part of Microsoft 365 Copilot. (I asked Microsoft if the two would merge as a single Cowork-type offering at some point but was told the company had no comment.)
However, the holy grail remains the “Super App.” With the Copilot Super App, Microsoft is looking to give consumers and business users a reason to stay within Copilot regardless of the AI task with which they – or their agents – are engaging.
“Come summer, we will be bringing coding to all knowledge work within one Copilot Super App. That’s really exciting. So you’re going to have Chat, Cowork, and Code all in Copilot,” Nadella told Microsoft Build conference attendees in early June.
Microsoft isn’t the only AI-focused company working on extending its AI coding capability beyond just developers. Nor is it the only one betting on the Super App concept.
OpenAI is working to turn ChatGPT into a Super App that brings together ChatGPT and Codex into a single environment that operates like a personal assistant. Anthropic is extending Claude to become a Super App (though it hasn’t used that terminology), as well, by creating a single environment that combines productivity, development and automation tools. The Copilot Super App isn’t Andreou’s only focus. He tells Fortune that AI model choice and home-grown AI model excellence also are among his key priorities.
Microsoft is expanding model choice in the Copilot Cowork feature beyond Anthropic to include OpenAI and soon, Microsoft’s own Cowork 1 model – which may be based on Microsoft’s hosted version of the open-source DeepSeek model. Cowork 1 will be the newest addition to Microsoft’s growing pool of Microsoft-developed models, seven of which debuted at Build this year. Microsoft is seeking to position itself as the champion of lower cost, efficient models built for those who are token-maxxed out.
Andreou definitely has his work cut out for him as a consumer guy in a heavily enterprise-centric company.
Microsoft 365 Copilot and consumer Copilot are just two of more than two dozen different “Copilot”-branded commercial offerings available across the various Microsoft product teams, which can feel overwhelming.
Microsoft also needs to give users a clearer way to find and use the quickly expanding stable of first- and third-party agents, like the OpenClaw-based Microsoft Scout personal assistant. Will Andreou and his Super App quest bring at least some order to the Copilot and agent madness? We’ll know more sometime this summer.
NEW YORK, June 29, 2026 (GLOBE NEWSWIRE) -- Levi & Korsinsky, LLP notifies investors in Microsoft Corporation (NASDAQ: MSFT) that a class action has been filed on behalf of shareholders who purchased securities between May 1, 2025 and January 28, 2026. Find out if you qualify to recover losses. You may also contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.
During the Class Period, MSFT shares traded at all-time highs above $550 per share as management touted "best-in-class" AI capabilities and record Microsoft 365 Copilot adoption across 90% of the Fortune 500. The lead plaintiff deadline is August 11, 2026.
How Alleged Misrepresentations Inflated MSFT's Market Price
The securities action asserts that Microsoft's stock price was artificially inflated by a sustained campaign of optimistic statements about the Company's AI products and cloud infrastructure. Throughout the Class Period, executives claimed Copilot was the fastest-growing product in Microsoft 365 history, that usage intensity was doubling quarter over quarter, and that Azure AI services were driving 16 points of cloud revenue growth. These statements allegedly fueled investor demand that pushed MSFT to record valuations.
The complaint contends that behind these public proclamations, the Copilot family of products suffered from significant brand positioning failures, data siloing limitations, computational capacity constraints, and interoperability problems that defendants knew about or recklessly disregarded. When the market began processing the gap between the Company's representations and the actual state of its AI offerings, billions in shareholder value evaporated.
The Azure-OpenAI Revenue Loop and Market Perception
Investors bid MSFT shares higher in part because of management's emphasis on massive AI-related contracts. The lawsuit chronicles how executives highlighted OpenAI's 30 billion compute capacity agreement as proof of surging demand. The action claims these figures obscured the circular nature of the arrangements: Microsoft invested billions in these same LLM providers, who then committed to spending those dollars back on Microsoft's Azure platform. The filing states this dynamic created an appearance of organic demand growth that the market relied upon when pricing MSFT shares.
Market Repricing After Concealed Problems Emerged
The complaint details how the market ultimately reassessed MSFT's valuation as investors learned that:
Copilot's "record" adoption figures masked deep user experience and interoperability failures that limited real-world productivity gainsThe Company's AI infrastructure buildout, including plans to double its data center footprint, carried concentration and return-on-investment risks that were downplayed to investorsSeat growth was concentrated in lower-ARPU segments like small businesses and frontline workers, undermining the revenue acceleration narrativeThe multibillion-dollar LLM provider partnerships created circular revenue dependencies rather than the independent demand growth executives described See if you can recover losses from your MSFT investment or call (212) 363-7500.
"When companies fail to disclose material information, shareholders may suffer significant losses. The magnitude of MSFT's market capitalization swing following these revelations underscores how heavily investors relied on management's AI growth narrative," stated Joseph E. Levi, Esq.
Join the Microsoft securities recovery action now or contact Joseph E. Levi, Esq. at (212) 363-7500.
ABOUT LEVI & KORSINSKY, LLP -- Over the past 20 years, Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders. The firm has extensive expertise in complex securities litigation and a team of over 70 employees. For seven consecutive years, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report. The last day to move for lead plaintiff is August 11, 2026.
Frequently Asked Questions About the MSFT Lawsuit
Q: How much did MSFT stock drop? A: Shares traded at all-time highs above $550 per share during the Class Period before declining significantly after the market began processing that Microsoft's AI product claims were allegedly misleading. Investors who purchased shares at artificially inflated prices may be entitled to compensation.
Q: What specific misstatements does the MSFT lawsuit allege? A: The complaint alleges Microsoft made materially false or misleading statements regarding the success, adoption, and performance of its Copilot AI products and the return on investment for its multibillion-dollar AI capital expenditures, while concealing significant technical and organizational problems.
Q: What do MSFT investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible as a class member.
Q: What if I already sold my MSFT shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the Class Period and sold at a loss may still participate.
Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
Q: How long will the lawsuit take to resolve? A: Securities class actions typically take two to four years from initial filing to resolution.
Q: Can I join a different law firm's lawsuit instead? A: Multiple firms often file competing complaints. The court consolidates and appoints a single lead counsel. Contacting Levi & Korsinsky before August 11, 2026 ensures your losses are considered.
Key Takeaways Microsoft shares hit a 52-week low as AI infrastructure spending drew investor scrutiny.MSFT expects over $40B in fiscal Q4 capex and capacity constraints through the rest of 2026.Microsoft's AI investments target future Azure and Copilot growth despite near-term margin pressure. Microsoft (MSFT - Free Report) shares slid to a 52-week low of $349.20 on June 25, extending a decline tied largely to the scale of the company's ongoing investment in artificial intelligence infrastructure. The selloff reflects continued investor scrutiny of capital spending set at roughly $190 billion for calendar 2026, directed mainly toward data centers, GPUs and the broader compute capacity behind Azure, Copilot and the company's expanding portfolio of AI services.
Roughly two-thirds of this spending is going toward short-lived assets such as GPUs and CPUs, which depreciate faster and tie more directly to near-term revenues, while the remaining portion supports longer-lived infrastructure expected to generate returns over the next 15 years. This mix is expected to keep pressuring near-term profitability, with Microsoft Cloud gross margin guided at 64% for the fiscal fourth quarter, down 4% year over year, as the cost of bringing new capacity online continues to outpace the revenues it generates in its early months.
Capital expenditures are expected to climb above $40 billion in the fiscal fourth quarter, with component costs adding to the total. MSFT expects to remain capacity-constrained through the remainder of 2026, even as new data centers and silicon come online. Although the investments are expected to weigh on profitability in the near term, they are aimed at expanding AI capacity to support future Azure and Copilot growth, making the pace of return on these investments a key factor to watch.
How Do Hyperscale Rivals Stack Up?Microsoft's peers Amazon (AMZN - Free Report) and Alphabet (GOOGL - Free Report) are also ramping up capital expenditures to expand AI infrastructure and cloud capacity.
Amazon expects to invest approximately $200 billion in capital expenditures in 2026, primarily to support AWS data centers, custom silicon and networking infrastructure. Alphabet recently raised its 2026 capital expenditure guidance to $180-$190 billion, driven by robust AI compute demand across Google Cloud and Gemini.
Like Microsoft, Amazon expects elevated AI investments to support long-term growth, while Alphabet has acknowledged near-term margin pressure from higher depreciation and infrastructure costs. The continued investments by Microsoft, Amazon and Alphabet highlight an industry-wide AI infrastructure expansion.
MSFT’s Share Price Performance, Valuation & EstimatesMSFT shares have plunged 22.8% in the year-to-date (YTD) period compared with the Zacks Computer – Software industry’s decline of 24.5%. The Zacks Computer and Technology sector has appreciated 13% in the same time frame.
MSFT’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, MSFT stock appears overvalued, trading at a forward 12-month price/earnings ratio of 19.35X, higher than the industry’s 19.03X. MSFT has a Value Score of D.
MSFT’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MSFT’s fiscal 2026 earnings is pegged at $17.33 per share. The estimate indicates 27.05% year-over-year growth.
Microsoft currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Candy Crush is transforming NYC game-day travel with Candy Cabs, where riders can complete a Candy Crush Saga level to unlock a complementary ride. Soccer icon Alex Morgan is headlining Candy Crush's Soccer Season 2026, the annual in-game tournament that brings the "game between games" to life. Whether heading to a fan zone, watch party, or celebration, Candy Cabs keep fans playing long after they leave the stadium. , /PRNewswire/ --This Soccer Season, Candy Crush Saga® is taking game day beyond the stadium and onto the streets of New York City. Launching June 30, Candy Cabs are a fleet of interactive rides designed to turn travel time into play time, giving fans the chance to unlock complimentary rides simply by beating a Candy Crush Saga level before they reach their destination.
Candy Crush launches ‘Candy Cabs,’ a fleet of interactive rides equipped with in-cab tablets, where you play and they pay for your ride
Players can scan QR codes on Candy Crush fly posters or Candy Cab vehicles around Manhattan to reserve a ride.
Since June 9, players have been competing in Candy Crush Saga's Soccer Season in-game event, which is live now.
Alex Morgan encourages fans to embrace Soccer Season 2026 as the ultimate ‘game between games. Equipped with in-cab tablets featuring live gameplay, Candy Cabs transform every trip into a high-stakes challenge and the ultimate "game between the games." Whether heading to a fan zone, sports bar, watch party, or post-match celebration, fans can keep the excitement going from kickoff to the final whistle—all while enjoying one of the world's most beloved mobile games.
Although soccer matches only last around 90 minutes, game day excitement lasts way longer for U.S. fans. More than half (52%) say their experience begins hours before the first whistle¹, with anticipation building before kickoff. And those in-between moments are already moments of play: 27% are playing games on their phones in transit, and nearly as many (23%) jump back in at halftime, proving the journey is just as electric as the match itself. That's exactly where Candy Cabs come in. Turning every ride, wait, and pause into a chance to play, match, and win along the way.
The Candy Cab Experience
Book your spot: Scan the QR code on Candy Crush fly posters or Candy Cab vehicles around Manhattan to reserve your slot. Play for your ride: Once you're in, complete a Candy Crush level on the in-cab tablet before you arrive. Beat it and the ride's free. Get there: Your Candy Cab picks you up at Cooper Classic Cars in Greenwich Village and drops you at either Hudson Yards Public Square & Gardens or Hair of the Dog (168 Orchard St). "Game day isn't just about the match- it's about everything that leads up to it. Candy Crush has always made those in-between moments more fun, and with Candy Cabs we're bringing that spirit to life in a way only Candy Crush can—turning the ride to the game into part of the game itself." — Luken Aragon, Chief Marketing Officer, King.
Candy Cabs are part of Candy Crush's broader Soccer Season celebration, a limited-time in-game event that brings the excitement of the sport directly into the game. Since June 9, players have been collecting Blue Candies, climbing competitive leagues, and competing for exclusive rewards alongside soccer legend Alex Morgan, who encourages fans to embrace this season's tournament as the ultimate "game between games".
"Every athlete knows the game-day experience starts long before kickoff. The journey there, the anticipation, the energy building around you—it's all part of what makes sports so special. Candy Crush has been one of my favorite ways to pass the time between matches, so seeing the game come to life around Soccer Season feels like a full circle moment for me." — Alex Morgan, two-time FIFA Women's World Cup Champion.
Scan. Ride. Play. Follow the experience and explore every colorful match day moment by visiting Candy Crush on Instagram and TikTok at @CandyCrushSaga or online at candycrushsaga.com.
Candy Crush Saga® is free to download on iOS and Android. For more information, visit candycrushsaga.com.
About Candy Crush Saga
Candy Crush Saga® is one of the world's most popular mobile games. Millions of players around the globe match colorful candies in combinations of three or more to win points, defeat obstacles, and progress through more than 20,000 levels. In November 2022, Candy Crush Saga celebrated its 10-year anniversary. Candy Crush Saga is available to download for free from the Apple App Store, Google Play, Amazon App Store, Windows App Store and Facebook.
About King
With a mission of Making the World Playful, King is a leading interactive entertainment company for the mobile world with more than 20 years of history of delivering some of the world's most iconic games in the mobile gaming industry, including the world-famous Candy Crush franchise, as well as other mobile titles such as Farm Heroes Saga. King games are played by more than 200 million monthly active users. King, part of Microsoft (NASDAQ: MSFT), has Kingsters in Stockholm, Malmö, London, Barcelona, Berlin, Dublin, San Francisco, New York, Los Angeles and Malta. More information can be found at King.com or by following us on LinkedIn and @lifeatking on Instagram.
¹Source: Atomik Research survey of 1,000 U.S. sports fans aged 18–40, commissioned by Manifest on behalf of Candy Crush; June 2026
A photo taken on May 7, 2026 shows the letters AI for Artificial Intelligence on a laptop screen (top) next to the logo of the Microsoft's Copilot chatbot application on a smartphone screen in Frankfurt am Main, western Germany. (Photo by Kirill KUDRYAVTSEV / AFP via Getty Images)
AFP via Getty Images
This article was written by Doug Nathman, with research by his team at Trefis.
If you own Microsoft stock, the options market indicates you are already bearing exposure to a remarkably broad range of potential outcomes over the next year.
The options market is reflecting two distinctly different futures for Microsoft (MSFT). In one scenario, the stock's value concludes the upcoming year around $240. In another scenario, it approaches $509. If you own the stock, you are subject to the risk of the entire spectrum, a subtle volatility integrated into a stock that, on any given day, might not appear particularly tumultuous.
This isn’t a forecast. It’s a price point. The options market offers one analytical framework for evaluating market-implied risk and currently assigns an implied volatility of 37.1% for Microsoft over the next year. This figure corresponds directly to a broad 68% probability range, spanning a floor approximately 32.0% below today’s price and a ceiling roughly 44.4% above it. You face that complete, two-sided fluctuation.
Why The Market Is Assessing More Risk Than UsualThe 37.1% volatility statistic is not standard practice. It’s currently at 1.41 times the stock’s actual, observed volatility of 26.3% over the past year. Simply put, the market is factoring in considerably greater uncertainty than the stock has historically exhibited. This isn’t merely noise; it’s a valuation on a very defined and unresolved discourse concerning the company’s future.
The $190 Billion Question Fueling This UncertaintyThe root of this tension is evident from the company’s own strategies. On one hand, there is rapid expansion. Management recently pointed out that its “AI business exceeded $37 billion in ARR, an increase of 123%,” and that Microsoft Cloud revenue surpassed $54 billion, reflecting a 29% increase year-over-year. The company now boasts “over 20 million Microsoft 365 Copilot paid seats.” This narrative has the potential to propel the stock toward the upper end of that price range. In a brief aside regarding sentiment, options traders are presently paying more for upside calls than for downside puts.
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However, that growth incurs a hefty cost. The other side of the discussion pertains to the capital needed to support it. Management mentioned in its latest call that for the calendar year 2026, “we anticipate investing approximately $190 billion in capital expenditures.” This figure has created what one analyst referred to as a “disconnect that makes investors a bit anxious regarding the speed at which they observe CapEx growing relative to revenue growth.” The fundamental query is whether the returns from AI can justify such an expenditure level, especially when, as another analyst noted, “overall IT spending expectations are not increasing.”
Determining Your Investment For A Two-Sided ScenarioYou cannot dictate which of these influences, the rapid growth or the significant costs, will more greatly affect the stock price. What you can manage is your exposure to this uncertainty. A stock exhibiting this level of implied volatility necessitates disciplined portfolio management, not mere prediction. It highlights the significance of position sizing and diversification.
For shareholders, the critical aspect to observe is how the revenue growth narrative unfolds in relation to capital expenditures. Management has indicated that they “expect another year of double-digit revenue and operating income growth in FY '27.” Whether the company can fulfill that promise, and the degree of profitability, will be the decisive factor that clarifies the broad uncertainty presently incorporated into your shares.
A disciplined, diversified approach is designed to address precisely that concern. The Trefis High Quality (HQ) Portfoliocombines the potential of robust enterprises with the stability provided by a 30-stock portfolio, sized and re-balanced with precision, and has outperformed a benchmark that aggregates the three major indices – the S&P 500, S&P Mid-cap, and Russell 2000. Augmenting a concentrated holding in this manner allows you to maintain compounding while mitigating the fluctuations that could disrupt long-term strategies.
Microsoft (NASDAQ:MSFT | MSFT Price Prediction) is the stock every cloud bull and AI evangelist keeps pointing at, drawn by an AI business that just crossed a $37 billion annual run rate and Azure growth holding at 40%.
But here’s what you should actually be watching.
The Capex Furnace Nobody Wants to Price Microsoft just spent $30.88 billion on capital expenditures in a single quarter, up 84.39% year over year. Full-year FY25 capex hit $64.55 billion, versus $20.62 billion in FY21. Capex now consumes 47.4% of operating cash flow, up from 26.9% four years ago. And the punchline retirement investors keep missing: free cash flow actually declined 3.32% in FY25 while revenue grew.
The stock has already begun to flinch. Shares are down 24.42% over the past year and 22.54% year to date. Even the retail crowd is catching the scent: an r/wallstreetbets post titled “Satya and Zuckerberg are incinerating capital” cleared 1,061 upvotes. Meanwhile, OpenAI investment losses ballooned to $3.1 billion in Q1 FY26 versus $523 million a year earlier, even as Microsoft pledged a $250 billion Azure backstop tied to the same partner. At 27x earnings and 39x free cash flow, that’s a steep multiple to pay for an arms race with rising tuition.
The Asset-Light Fortress: Why Apple Wins This Cycle Apple (NASDAQ:AAPL) is running the opposite playbook, and the scoreboard agrees. Shares are up 41.75% over the past year while Microsoft melted. Three reasons the gap widens from here.
1. Asset-light beats capex-heavy. Apple’s Q1 FY26 capex was $2.37 billion, down 19.29% YoY, against operating cash flow of $53.93 billion. That’s a 4.4% capex-to-OCF ratio. Microsoft’s ratio is closing in on 50%. Apple’s customers refresh phones. Microsoft has to refresh data centers.
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.
2. Capital returns are a tidal wave. Apple’s board authorized a fresh $100 billion buyback and raised the dividend 4% in Q2 FY26. FY25 repurchases hit $90.71 billion. Microsoft returned $12.7 billion in dividends and buybacks in Q2 FY26 combined. One company is shrinking the float aggressively; the other is funding silicon.
3. The Services flywheel keeps compounding. Services hit an all-time record $30.98 billion in Q2 FY26, against $26.64 billion a year prior, riding an installed base of more than 2.5 billion active devices. Return on equity sits at 141.5% with ROIC of 53.35%. Microsoft’s ROE is 33.28%. Best-in-class capital efficiency is the model.
The latest quarter sealed it. Apple posted $111.18 billion in revenue, up 16.6%, with double-digit growth across every geographic segment and EPS of $2.01, the eighth straight beat. Tim Cook called it “our best March quarter ever.”
The Action Move your attention, and your research bandwidth, off the capex-heavy hyperscaler that headlines are still chasing and onto the cash-returning consumer fortress the headlines have stopped explaining. The relative setup favors Apple’s cash-return model over Microsoft’s capex cycle until the spending math changes.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Microsoft didn't make the cut. Grab the names FREE today.
Apple (AAPL, Financials) and Microsoft (MSFT, Financials) are starting to pass higher memory costs on to customers.The reason is the AI boom. Data centers need
NEW YORK, June 29, 2026 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces that a class action lawsuit has been filed against Microsoft Corporation (NASDAQ:MSFT) and certain of the Company’s senior executives for securities fraud after its significant stock drop resulting from potential violations of the federal securities laws.
If you invested in Microsoft, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/microsoft-class-action-lawsuit.
Key Details of the Microsoft ($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.
Voting Against Short-Term FearsMicrosoft’s stock has faced relentless pressure as investors panic over massive capital expenditures. However, Boloor recently initiated a trade in the “former market darling,” arguing that Wall Street is “significantly overselling” Microsoft.
He attributes the recent sell-off to short-term fears regarding expensive AI infrastructure, GPU spending, and declining free cash flow.
Calling it a classic example of the voting machine versus the weighing machine, Boloor notes investors are punishing the stock today while ignoring the durable earnings power expected by 2027 and 2028.
Unignorable FundamentalsDespite the stock’s dismal year-to-date performance, the company’s core engine is accelerating. Overall revenue grew 18% year-over-year, and earnings per share expanded by 23%—meaning EPS is successfully outpacing revenue growth despite the heavy investments.
Most notably, Microsoft’s cloud segment surpassed $54 billion, with Azure soaring by 40%. Boloor points out that Microsoft possesses “one of the strongest enterprise distribution moats in all of technology.”
Rather than convincing companies to adopt brand new platforms, Microsoft is seamlessly embedding AI into everyday tools like Outlook, Excel, and Teams. This strategy brilliantly shifts the company from merely monetizing users to successfully “monetizing work.”
The Copilot Scale And OpenAI NuanceWhile some consider Copilot adoption disappointing, Boloor notes the platform already boasts over 20 million paid seats. As this scales, it transforms into a highly lucrative revenue layer.
Finally, Boloor addressed the OpenAI concentration risk. While acknowledging the vulnerability, he views the updated partnership as a “huge win” that allows Microsoft to retain vital IP rights through 2032 while redirecting capital toward its own internal AI infrastructure and Azure models.
How Has MSFT Performed In 2026?MSFT shares have plunged 22.88% YTD, up 10.35% over the last month, and 25.02% over the year. The stock closed 5.71% higher at $372.97 apiece on Friday, and it was 1.77% higher in premarket on Monday.
Benzinga’s Edge Stock Rankings indicate that MSFT maintains a weak price trend in the short, long, and medium terms, with a solid quality score.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock
Market News and Data brought to you by Benzinga APIs
Microsoft (MSFT) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help the stock continue moving higher in the near term.
New York, New York--(Newsfile Corp. - June 28, 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/303194
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.
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New York, New York--(Newsfile Corp. - June 28, 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.
Follow us for updates on LinkedIn, X, Facebook, or Instagram.
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/301524
Source: Bronstein, Gewirtz & Grossman, LLC
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Amazon, Microsoft, and Alphabet's Google have been experiencing strong demand for their artificial intelligence (AI)-focused cloud computing offerings, leading to significant increases in their backlogs and remaining performance obligations (RPO).
The three tech giants, which are members of the Magnificent Seven, were sitting on a combined order backlog of $1.45 trillion in the first quarter of 2026. This clearly indicates an incredible demand for running AI workloads in data centers. However, shares of Amazon, Microsoft, and Alphabet have struggled despite the massive contractual backlogs they carry.
While Amazon and Alphabet have gained 3% and 6% this year, Microsoft's stock has retreated 21%. However, there's another cloud computing company that's witnessed a parabolic jump in its stock price this year. Shares of DigitalOcean (DOCN 4.04%) are up by an incredible 184%.
Let's see why that's the case and check why this high-flying stock isn't done soaring yet.
Image source: The Motley Fool.
DigitalOcean's business model is driving an acceleration in growth Like its larger peers, DigitalOcean provides an on-demand cloud computing platform. However, the key difference in its business model from those of Amazon, Microsoft, and Alphabet is that its offerings are tailored for small and medium businesses, start-ups, and developers. Of course, the three tech giants I am comparing DigitalOcean with account for 62% share of the cloud computing market, but the smaller company is carving out a niche for itself.
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That's because DigitalOcean claims to offer a simple platform with predictable, flat pricing to customers, which is ideal for small and medium-sized companies that want to avoid complexity and keep costs in check while deploying AI solutions. Specifically, DigitalOcean offers 30 core products as compared to the hundreds of offerings available on the cloud computing platforms of its bigger competitors. It offers all its products on a single platform, making it easier to build, deploy, and scale AI applications.
Also, the simplified nature of its cloud offerings means that smaller businesses are likely to get better support and attention. Most importantly, DigitalOcean claims that it can reduce total costs by up to 80% compared with traditional hyperscalers. This probably explains why customers have started spending aggressively on its cloud computing platform, especially for running AI workloads.
The company noted that its AI-focused annual recurring revenue (ARR) in Q1 jumped by 221% year over year to $170 million. That was significantly higher than the 22% increase in its overall ARR to just over $1 billion. More importantly, DigitalOcean customers are not just renting the company's AI hardware but also running inference services on its platform.
Specifically, DigitalOcean's ARR from its inference services increased by a whopping 487% year over year in Q1, accounting for 64% of its AI ARR. The company estimates that AI inference workloads will account for 80% of the computing power in AI data centers in 2030, up from around 50% last year. So, it won't be surprising to see more customers flocking toward DigitalOcean's platform to run inference workloads in the future.
The good news is that DigitalOcean's growing prominence in AI cloud infrastructure is poised to translate into stronger growth for the company, as evidenced by the substantial upgrade to its guidance. DigitalOcean anticipates a 26% increase in revenue in 2026, followed by a significantly stronger jump of more than 50% in 2027. Even better, analysts anticipate its solid momentum will continue beyond next year.
Data by YCharts
But is the stock still worth buying? Investors may be wondering whether buying this AI stock is a good idea after its stunning 2026 rally. After all, DigitalOcean is now trading at almost 16 times sales, well above the tech-laden Nasdaq Composite index's price-to-sales ratio of 5.2.
However, the acceleration in DigitalOcean's growth justifies the premium valuation, especially considering that it is at the beginning of a terrific growth curve. The cloud computing provider can sustain its solid growth beyond the next couple of years, driven by the growing demand for AI inference. Assuming it can clock even 20% revenue growth in 2029 and 2030, DigitalOcean's top line could reach $3.53 billion by the end of the decade.
If the stock trades at even 10 times sales at that time, its market cap could reach $35 billion, implying 141% upside from current levels. So, it isn't too late for investors to buy this growth stock as it still has terrific upside potential.
New York, New York--(Newsfile Corp. - June 27, 2026) - WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of common stock of Microsoft Corporation (NASDAQ: MSFT) between May 1, 2025 and January 28, 2026, inclusive (the "Class Period"), of the important August 11, 2026 lead plaintiff deadline.
SO WHAT: If you purchased Microsoft common stock during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.
WHAT TO DO NEXT: To join the Microsoft class action, go to https://rosenlegal.com/cases/microsoft-corporation/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than August 11, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually handle securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered billions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers.
DETAILS OF THE CASE: According to the lawsuit, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) Microsoft's Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems; (2) Microsoft's flagship proprietary AI model ranked well below competitors on a number of benchmark tests; (3) Microsoft needed to increase by billions of dollars its capital expenditures and divert graphics processing unit ("GPU") and central processing unit ("CPU") capacity away from fulfilling demand for its profitable Azure services in order to improve the competitive positioning of its critical Copilot family of products and increase its AI-related research and development ("R&D"); and (4) as a result, Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and Microsoft's Copilot offerings had lost market share to rival products, a trend that was increasing. When the true details entered the market, the lawsuit claims that investors suffered damages.
To join the Microsoft class action, go to https://rosenlegal.com/cases/microsoft-corporation/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm/.
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/303193
Source: The Rosen Law Firm PA
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Artificial intelligence has turned the stock market into a contest over who will own the infrastructure powering the next decade of computing. Investors have poured hundreds of billions of dollars into AI leaders, pushing many technology stocks to lofty valuations. Yet even after Microsoft‘s (NASDAQ:MSFT | MSFT Price Prediction) stock climbed over the past several years, it’s fallen hard over the past eight months, falling almost 33%.
One of Wall Street’s best-known contrarian investors believes the market is missing the bigger picture. Michael Burry, whose successful bets against the housing bubble were chronicled in The Big Short, has revealed a new long-term wager that suggests he sees Microsoft’s AI opportunity extending well beyond today’s expectations.
Burry’s Leveraged Bet on Microsoft’s Future Rather than purchasing Microsoft shares outright, Burry disclosed that he bought December 2028 LEAP call options with strike prices around $700.
LEAPs — Long-Term Equity AnticiPation Securities — are simply long-dated options. In this case, they give Burry the right to purchase 100 Microsoft shares per contract at $700 any time before the options expire in December 2028. The strike price stands far above Microsoft’s recent trading range of roughly $350 to $373, making the options deeply out of the money today.
Here’s what the bet tells investors:
Trade Detail What It Means Expiration December 2028 Strike price Approximately $700 Current MSFT price About $350-$373 Investment thesis Microsoft could rise well above $700 before expiration Maximum loss Limited to the premium paid Potential upside Large if Microsoft delivers another multi-year rally The options don’t become profitable simply because Microsoft reaches $700. Burry must also recover the premium he paid, meaning his breakeven price is roughly the strike plus that premium. If Microsoft finishes below that level, the options could expire worthless.
To put that into perspective, if Microsoft were trading at $900 in late 2028, each option would carry about $200 per share in intrinsic value before accounting for the purchase price of the contract.
Why Options Instead of Buying the Stock? Burry has said he already views Microsoft around $350 as an attractive entry point. Rather than commit the capital required to purchase shares, he believes these long-dated calls were inexpensive relative to his outlook.
Instead of tying up tens of thousands of dollars buying stock, LEAPs provide leveraged exposure while limiting downside to the premium paid. Granted, leverage cuts both ways. If Microsoft’s shares fail to appreciate enough before expiration, time decay — known as theta — will steadily reduce the options’ value.
The trade also fits Burry’s investing style. He has built his reputation by making concentrated, high-conviction investments when he believes markets have mispriced an opportunity. While he’s often associated with bearish calls, this position is the opposite — a multi-year bullish bet on one of the world’s largest technology companies.
His thesis likely rests on Microsoft’s leadership across several fast-growing businesses, including Azure cloud computing, enterprise software, AI infrastructure, and its partnership with OpenAI.
This Might Not Be an All-In Position One important detail remains unknown: the size of Burry’s investment. Although he publicly disclosed purchasing the December 2028 LEAPs, he did not reveal how many contracts he owns or how much capital he committed. Because Scion Asset Management no longer files regular Form 13F reports with the Securities and Exchange Commission, investors have no independent way to verify the position’s size.
The trade could actually represent a small speculative position or a major portfolio allocation. Without additional disclosure, nobody outside Burry’s firm knows.
This isn’t the first time Burry expressed bullishness about Microsoft. Earlier this year, he revealed he had gone long on the stock, though he also didn’t reveal any details about his trade. Shares traded at much the same price back then as they do today.
Key Takeaway In short, Burry’s Microsoft trade sends a clear message even if the dollar amount remains a mystery. He believes Microsoft is undervalued enough that shares could climb well beyond $700 over the next two and a half years, making long-dated call options an attractive way to express that conviction.
That said, most retail investors should resist copying the trade outright. LEAP options can generate outsized returns, but they also can lose 100% of their value if the underlying stock falls short of expectations. Investors who share Burry’s optimism — but prefer a wider margin for error — may find simply owning Microsoft shares offers a more forgiving way to benefit from the company’s expanding AI, cloud, and enterprise software businesses over the long run.
Earlier this year, Mono Technologies assembled and shipped nearly 1,000 units of its flagship product, a $600 router development kit. Co-founder Tomaž Zaman, who started Mono in 2024, found early traction with networking aficionados, who use the product to speed their internet connections.
Then came the memory crunch, which has driven up the cost to produce practically every electronic device on the planet. Now, Zaman isn't sure what to do, especially for the 1,300 prospective customers who put down a $100 deposit for his next production run.
Mono's cost for 8 gigabytes of a type of DRAM from Micron shot up from $35 when he was first developing the product to $300 today. At his three-person company, Zaman said he hasn't decided if he'll go ahead with a second batch and increase the price by at least one-third, or introduce a new model with 75% less memory.
"Even a router of our class, it's a poor value if you make it at $900, $1,000," Zaman told CNBC in an interview. "But we have to, or we trim it down to the bare minimums."
Zaman's experience is becoming common across the consumer electronics market, from iconic devices like iPads and Xbox consoles to niche products that are barely past the testing phase. Costs are soaring due to a global supply crunch caused by the artificial intelligence boom, which has led chipmakers like Nvidia to suck up ever-increasing amounts of memory for their processors and advanced systems.
But while tech giants like Apple and Microsoft, which both announced price hikes this week, have a hefty cash cushion, supply chain leverage and customers numbering in the millions or billions, a much wider swath of businesses face potentially dire straits. Most consumer electronics companies have little margin to spare and can't confidently raise prices in an economy already grappling with inflationary pressures.
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GoPro, the struggling maker of action cameras, warned this month that it might go out of business after memory costs shot up between 80% and 115% at the end of the first quarter. And shares of speaker maker Sonos are down 23% this year as memory prices pressure margins.
Nabila Popal, an analyst at IDC, described the current situation as an "absolute existential crisis" for companies such as smaller Android phone manufacturers or "local players that are making devices below $100."
"They won't be able to get the memory because memory suppliers are only answering calls of the big players," Popal said.
Pain is Micron's gainThe flip side of the story was also on display this week.
In its quarterly earnings report on Wednesday, Micron said revenue in the latest period more than quadrupled, and its gross margin more than doubled to almost 85% from 39% a year ago. Micron shares jumped 16% on the results and are now up about 800% over the past year, rallying alongside rivals SK Hynix and Samsung.
Micron said the average selling price of its dynamic RAM in the third quarter rose more than 260% from a year ago. Sumit Sadana, Micron's chief business officer, said in an interview that the company has struck long-term supply agreements with consumer-oriented smartphone and PC companies.
"We spend a lot of time thinking about how do we manage the business and the supply and the allocation of these scarce volumes to customers and segments and markets and geographies to ensure that we are being thoughtful, responsible and fair in our approach," Sadana said.
A day after Micron's results, Apple raised prices on a wide range of iPads and Macs, saying in a statement that the company has "never seen a component price increase this much, this quickly." CEO Tim Cook, in a Wall Street Journal interview published last week, said increases were coming, calling the memory situation a "hundred-year flood."
Within hours of Apple's announcement, Microsoft said the price of the Xbox Series S would increase by $100 to about $500. The company said in a blog post that consoles are typically sold for less than they cost to make.
"Console storage and memory prices have increased by more than 2.5x and we expect another doubling by the fall of 2027," Microsoft said in the post. "The entire consumer electronics industry is struggling with the current components crisis, but the effects are particularly hard on consoles."
Wall Street has its concerns, as both stocks fell this week and are underperforming the broader indexes this year. But panic levels are much higher at companies that lack close ties to component suppliers and are subject to constant cost changes and swings in availability.
Industries ranging from telecommunications and medical devices to retailers are concerned about the price increases, according to a letter from lobbyists sent to the Department of Commerce earlier this month.
GoPro said in its warning to investors that it heard from memory suppliers in April about "planned reductions in the production of the memory used in its products," leading to lower projected sales volumes. The company didn't respond to a request for comment.
Elaine Ferguson, co-founder of W5 Technologies, is wrestling with how to deal with crippling RAM costs and lead times for the communications equipment her company makes for defense contractors.
Earlier this year, W5 placed an order for a server from a major manufacturer to include in a satellite communications simulator that the company planned to deliver in May. Ferguson said the price when she ordered it was $8,839, up from $5,373 in 2020.
Since that purchase, the price has almost doubled.
"We just ordered another one for another sale," Ferguson said. "It is now just under $15,000 and the lead time is anytime we get it, we're lucky to get it."
Instead of getting it in May, Ferguson said she's now not expecting it until August. Ferguson said W5 offered the defense contractor client a used server that's currently being tested and payment to fly her team out for installation.
Meanwhile, at Mono Technologies, Zaman said he's working on development and qualification for the company's next model, though he's not sure when it will come to market. He's also fundraising, hoping to find investors to back a new and larger production run.
"Product manufacturing is very expensive," he said.
Microsoft: Steady Revenue ProgressionMicrosoft (MSFT +6.03%) develops and licenses software, digital services, and cloud computing solutions for global enterprises and consumers.
It recently entered a long-term power agreement with Chevron to support its data centers while facing a class-action lawsuit, and it reported 38% net income margin for the quarter ended March 31, 2026.
Alphabet: Maintaining a Larger Revenue BaseAlphabet (GOOGL 1.73%) provides a diverse range of digital platforms, advertising solutions, and cloud services to global consumers.
The company executed a large equity capital raise and introduced several technological updates at its developer conference. It generated 57% net income margin for the quarter ended March 31, 2026.
Why Revenue Matters for Retail InvestorsRevenue serves as a foundational measure of total money generated by core business operations before deducting expenses. Tracking this metric helps investors measure a company's total customer sales volume and baseline growth trajectory over time.
Quarterly Revenue for Microsoft and AlphabetQuarter (Period End)Microsoft RevenueAlphabet RevenueQ2 2024 (June 2024)$64.7 billion$84.7 billionQ3 2024 (Sept. 2024)$65.6 billion$88.3 billionQ4 2024 (Dec. 2024)$69.6 billion$96.5 billionQ1 2025 (March 2025)$70.1 billion$90.2 billionQ2 2025 (June 2025)$76.4 billion$96.4 billionQ3 2025 (Sept. 2025)$77.7 billion$102.3 billionQ4 2025 (Dec. 2025)$81.3 billion$113.9 billionQ1 2026 (March 2026)$82.9 billion$109.9 billionData source: Company filings. Data as of June 23, 2026.
Foolish TakeMicrosoft and Google parent Alphabet are two of the premier companies worth investing in for those seeking stocks in the technology and artificial intelligence sectors. As the data above reveals, both are enjoying a trend of strong, sustained revenue growth. This suggests their businesses are thriving as AI injects new life into their offerings.
Even so, Microsoft and Alphabet experienced share price declines recently due to the substantial sums they are spending to build up the infrastructure needed to support their AI systems. The situation creates a buy opportunity for investors.
Although purchasing shares in both is ideal, if you have to choose one, my recommendation is Microsoft. Its stock fell to a 52-week low of $349.20 on June 25. As a result, Microsoft’s forward price-to-earnings ratio is 18, below Alphabet’s 24, indicating Microsoft stock is the better value.
In addition, although both pay a dividend, Microsoft's dividend yield is far greater at 1% compared to Alphabet’s tiny 0.26%. This passive income adds to your total return.
Wall Street may be punishing Microsoft shares right now, but the company is doing well as the revenue data above illustrates. For example, sales in its fiscal third quarter, ended March 31, were $82.9 billion, representing strong 18% year-over-year growth. With its trend of rising revenue and a respectable dividend yield, Microsoft is looking like an attractive stock to buy right now.
The artificial intelligence boom has long been pitched as a transformative force that would boost productivity and eventually lower costs across the economy.
But this week, investors were confronted with a less discussed consequence of the AI race: higher prices.
Apple and Microsoft both announced product price increases on Thursday, citing soaring costs for memory and storage technologies that have become increasingly scarce as technology giants pour hundreds of billions of dollars into building AI infrastructure.
The moves reinforced growing concerns that, at least in the short term, AI may prove inflationary rather than disinflationary.
"Apple and Microsoft's price rises have struck at the market's fear of inflation, raising worries that, far from being deflationary, the AI boom might be inflationary, particularly for the hard-pressed consumer, hurting rather than aiding economic growth," Chris Beauchamp, chief market analyst at IG, said.
Apple raised prices on several MacBook and iPad models by between $100 and $300, though it left iPhone prices unchanged.
"The rapid expansion of AI data centers has created an extraordinary surge in demand for memory and storage. We have never seen a component price increase this much, this quickly," Apple said in a statement.
The company added that it had "reached a point where we need to begin raising prices on a number of products," while indicating that additional increases remain possible.
The market reaction was swift. Apple shares tumbled 6%, their worst single-day decline in more than a year.
Microsoft announced similar measures.
The software giant said prices of Xbox consoles would rise globally, with increases of $100 for 512-gigabyte models and $150 for one-terabyte versions effective Aug. 1.
The company also said it would discontinue its two-terabyte Xbox model.
The moves added to a growing list of technology manufacturers raising prices this year.
Dell, HP, Lenovo and Asus have all flagged higher prices, while Samsung increased prices on two variants of its Galaxy S26 smartphones in the United States by $100.
The price increases stem from an unprecedented shortage of memory chips.
Memory and storage components have become critical ingredients in the AI boom as hyperscalers race to build increasingly powerful data centres.
Suppliers have shifted production toward high-bandwidth memory chips used in AI servers, leaving consumer electronics manufacturers scrambling for supplies.
"The four largest US technology companies are forecast to spend $725 billion on data centers and AI equipment in 2026 alone. That level of demand for memory chips has created a shortage the supply chain cannot keep pace with," said James Bull at RSM UK.
Bull said it had become increasingly evident that the costs of building the AI economy were being passed on to consumers and potentially to the broader inflation outlook.
Morgan Stanley analysts warned earlier this month that soaring memory prices could trigger "chipflation" across industries.
The brokerage said memory chip prices had risen six-fold over the past year.
"What began as an AI infrastructure bottleneck is now spreading into hardware margins, device affordability, cloud costs, inflation and policy," the bank wrote in a note.
Some economists believe the inflationary impact of AI extends beyond semiconductors.
According to an April note by JPMorgan Asset Management's Chief Global Strategist David Kelly, the enormous spending wave tied to AI development is likely to be inflationary in the near term rather than deflationary because demand is hitting the economy well before productivity gains materialise.
Kelly acknowledged that rising memory-chip prices are one channel through which AI investment could feed into higher prices, but said they do not yet represent a major source of economy-wide inflation.
Instead, he pointed to other emerging pressures. One of the clearest examples is electricity demand.
"One aspect of this demand is spending on electricity. After more than a decade of no growth, US electricity production rose by 2.5% in 2024, 2.4% in 2025 and was up by 3.0% year-over-year in March of 2026," he said, noting that much of the increase was driven by data centre consumption and the growing use of AI models for training and inference.
Kelly said this likely contributed to a 4.6% year-over-year increase in consumer electricity prices in March.
However, because electricity carries a weight of only about 2.5% in the consumer price index basket, higher power costs accounted for just 0.1 percentage point of March's 3.3% annual rise in headline inflation.
The construction boom linked to AI data centres is also creating labour pressures.
Construction workers saw wages rise 4.3% year-over-year in March, outpacing the 3.5% increase recorded across the broader private sector.
However, Kelly said this acceleration was probably driven more by labour shortages than by AI itself.
The total number of US construction workers increased only 0.7% over the past year, partly reflecting a sharp reversal in immigration trends in a sector that has historically relied heavily on immigrant labour.
Kelly, however, said it was unlikely that most corporations had so far realised significant cost savings from deploying the latest AI models and even less likely that any savings had been passed on to consumers.
"There is a small but growing number of layoff announcements explicitly attributed to AI and there are some signs of diminished hiring of entry-level workers in the most AI-exposed industries," he said.
He added that fears that AI will "take your job" could also be making workers more cautious, with economywide year-over-year wage growth falling to an almost five-year low in March.
However, more recent data from global outplacement firm Challenger, Gray & Christmas suggests AI's impact on employment is becoming more pronounced, though.
US-based employers announced 97,006 job cuts in May, with artificial intelligence accounting for roughly 40% of all layoffs announced during the month.
It marked the third consecutive month in which AI was the leading reason cited for job reductions.
"Despite this labor market 'scare' effect, however, it does appear that AI is, on balance, adding slightly to inflation in the short run, although it will be far from the most important inflation driver. If this continues to be the case, over say, the next two years, then this alone would negate the idea that a disinflationary impulse from AI supports the need for short-term interest rate cuts," Kelly said.
He expects AI to become a powerful disinflationary force over the longer term as productivity gains begin to emerge and spread across the economy.
Goldman Sachs has echoed that assessment, saying AI is currently adding to inflationary pressures even though it should ultimately lower production costs and lift economic growth.
"We expect artificial intelligence to deliver large productivity gains over the next several years, boosting the economy's potential growth rate and putting downward pressure on production costs. So far, however, AI is boosting US inflation," Goldman Sachs economists wrote last month.
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Microsoft CEO Satya Nadella George Chan/Getty Images If you own a company, Satya Nadella thinks you should build your own AI.
In an interview that went live Friday, Microsoft's CEO told Yash Patil, cofounder of Applied Compute, that every company should create AI models tailored to its own business.
"My simple thing is there should be as many models in the world as firms in the world," Nadella said. "Because after all, what is a firm? A firm is a learning system."
"I don't want to be locked into any one model," Nadella added. "I want to be able to use my own context, my own data — in fact, my own traces to maybe even take a much more open-weight, cost-efficient model or a fine-tuned model."
The comments mark one of Nadella's clearest visions yet for enterprise AI. Many companies rely on foundation models from a relatively small group of AI companies, including OpenAI, Anthropic, Google, and Meta.
Microsoft has increasingly embraced a multi-model strategy through Azure AI Foundry, which also hosts models such as DeepSeek and Cohere, rather than relying solely on OpenAI. Amazon has pursued a similar strategy with Bedrock, while Google Cloud offers a growing catalog of third-party and proprietary models alongside Gemini.
Many enterprises are also experimenting with open-weight AI models, which have publicly available parameters so that companies could fine-tune and deploy the AI themselves, such as Meta's Llama and Mistral's models.
Nadella said that AI concentration poses long-term economic risks.
"It can't be, 'Hey, look, I have two frontier models or three frontier models' or whatever, some finite set that have learned everything that is differentiated today in the economy because then it collapses,'" Nadella said.
"You can always buy a tool, you can even outsource a task or even a job, but you can't outsource your learning," Nadella added. "If you outsource your learning, then why exist?"
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AI Artificial Intelligence Microsoft More Leadership
New York, New York--(Newsfile Corp. - June 26, 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.
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Microsoft (MSFT +6.03%) stock gained ground today even as a substantial number of other leading artificial intelligence (AI) stocks suffered sell-offs. The company's share price climbed 5.2% in the daily session. Meanwhile, the S&P 500 traded roughly flat in the session, and the Nasdaq Composite ended the day's trading down 0.7%.
Investors appear to be reducing exposure to AI chip stocks and increasing holdings in top software players, and that's had a positive impact on Microsoft's valuation. For a bit of additional perspective, the stock is still down roughly 23% year to date even after today's rally.
Image source: Getty Images.
Microsoft gains on AI rotation The AI chip stock trade has been losing some steam recently, but that doesn't mean that investors are entirely giving up on artificial intelligence plays. Instead, money that had been invested in leading semiconductor stocks appears to be shifting into top software names.
Big gains for AI hardware leaders across 2026's trading may now be raising significant valuation concerns, and it looks like investors are now pivoting some of their capital into software players. There wasn't any huge, business-specific news for Microsoft today, but the tech giant saw valuation gains in conjunction with the AI rotation trend.
Today's Change
(
6.03
%) $
21.29
Current Price
$
374.12
What's next for Microsoft? Even after accounting for today's gains, Microsoft stock trades down roughly 31% from its high. While continued rotation into AI software stocks would likely have a bullish impact on the company's share price, it remains to be seen if the trend will continue. Microsoft still looks like a worthwhile long-term investment, but it's possible that appetite for AI stocks as a whole could be shaky in the near term as investors weigh macroeconomic risks and other factors.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft. The Motley Fool has a disclosure policy.
Microsoft (NASDAQ:MSFT | MSFT Price Prediction) stock is rebounding sharply Friday afternoon, with shares up 5% to $371 as the broader memory and semiconductor tape stabilizes. The bounce offers a rare bright spot in what has been a punishing stretch for one of the market’s most widely held names.
The recovery comes against a brutal backdrop as MSFT stock is down 25% year to date. Microsoft shares traded above $500 in November of last year, so the buyers still have some catching up to do.
Today’s move has reignited a debate across trading desks and retail forums: what could it actually take to push Microsoft stock back toward $500? The answer hinges on a handful of identifiable catalysts now coming into focus.
Memory Cost Fears and an AI Reset Drove the Decline The pressure on Microsoft stock traces to two intertwined worries. The first is rising memory costs rippling across the broader tech industry, squeezing margins and threatening demand. The selloff intensified after Apple (NASDAQ:AAPL) raised its prices on some products to offset surging memory costs, and Microsoft followed by hiking prices on its current-generation Xbox consoles.
The second pressure point is the AI trade itself. A New York Times report flagged a potential delay to OpenAI’s expected IPO, possibly into 2027. Because OpenAI is viewed as a bellwether for AI valuations, and Microsoft holds a 27% stake worth $135 billion, sentiment took a direct hit.
Compounding the concerns, Microsoft’s capital intensity has surged. The company’s Q3 FY2026 capex hit $30.88 billion, up 84% year over year, and CFO Amy Hood guided to $190 billion in capital expenditures for calendar 2026.
The Path Back to $500 The first catalyst is a sentiment shift on memory. If worries about a memory hardware shortage flip into concerns about a potential glut, the margin-squeeze narrative pressuring MSFT could ease. Undersupply tends to self-correct as producers ramp output to chase high prices, which can relieve component-cost pressure for buyers like Microsoft over time.
The second is the AI story re-rating. Microsoft’s AI business surpassed a $37 billion annual revenue run rate, up 123% year over year, and commercial RPO reached $627 billion, up 99% year over year. Any easing of OpenAI IPO concerns could put a bid back under the broader AI complex.
The third potential catalyst is execution. Microsoft’s Azure revenue grew 40% in constant currency last quarter, and Hood guided to Q4 FY2026 Azure growth between 39% and 40%. Ultimately, another clean print could rebuild confidence in Microsoft.
Sentiment Is Quietly Turning Retail conviction is starting to firm up. Reddit sentiment scoring shows MSFT moving from neutral (58) at 9 a.m. to bullish (64) by midday, with r/investing posting the strongest reading at 88. A top thread arguing Microsoft is “cheaper than the April 2025 Tariff crash, yet TTM EPS is up 30%” has gained traction throughout the session.
Wall Street hasn’t blinked, either. The analyst consensus price target for MSFT sits at $561, supported by 52 buy or strong buy ratings versus 3 holds and zero sells. Furthermore, Microsoft’s forward P/E ratio of 18x reflects expectations of continued earnings growth.
The prediction markets, however, are more skeptical about the near term. Polymarket pricing implies only an 11% probability that MSFT closes above $450 by the end of June, with the odds of touching $500 effectively negligible at current levels.
What to Watch A move back toward $500 would require a meaningful rebound and is far from guaranteed. Sustained memory-cost inflation, a deeper AI valuation reset, or weaker enterprise demand could each keep the stock pinned. Investors should consider keeping their Microsoft stock position sizes modest given the uncertainty.
For now, the read-through is straightforward. The setup includes a beaten-down mega-cap, a $627 billion contracted revenue backlog, and a sentiment tape that’s just beginning to turn. Investors can watch for whether today’s MSFT stock bounce follows through next week and whether memory-cost commentary softens.
The next major informational catalyst will be Microsoft’s Q4 FY2026 earnings report, where Azure growth and capex guidance could either spread anxiety or validate the recovery thesis. A clean beat with moderating capex commentary would meaningfully strengthen the path higher.
Here’s a look at the four stocks that appear both in Ackman’s hedge fund and in the stock portfolio of Pelosi, which is managed by her husband, Paul Pelosi.
The 4 Shared StocksThe Benzinga Government Trades page for Pelosi shows four stocks disclosed by the congresswoman in the past five years that have not been sold, and are also owned by Ackman’s hedge fund, according to data from 13FInfo.
Here are the four stocks owned by both Pelosi and Ackman:
Ackman disclosed owning 311,726 GOOG shares and 32,376 GOOGL shares in the Pershing Square fund at the end of the first quarter. Both positions were cut by 95% in the first quarter. Alphabet Class C shares were the ninth-largest position at 0.7% of assets in the quarter, with Class A shares the 11th-largest position at 0.1% of assets.
Ackman disclosed owning 11,451,981 Amazon shares in the first quarter, representing 17% of the Pershing Square Capital Management portfolio and the second largest position. The e-commerce giant was a new purchase by Pershing Square in 2025 and Ackman has been adding to the position in recent quarters, with a 19% increase in the share count in the first quarter.
Different Investing StylesPelosi’s husband has a history of buying call options that are in the money and have expiration dates of a year from the purchase date. He later exercised the options into common stock.
Investments are often made in the technology sector, favoring large-cap names.
Ackman is a value and activist investor, known for taking large stakes in companies with dominant positions in their sectors and for pushing for changes to unlock shareholder value.
Three of the four stocks Pelosi and Ackman have in common are members of the Magnificent 7 and among the most valuable companies in the world.
A recent purchase of Uber call options by Pelosi gives the two investors four stocks in common now and a new position outside the Magnificent Seven stocks.
This article was previously published by Benzinga and has been updated.
Image created using artificial intelligence via DALL-E.
Market News and Data brought to you by Benzinga APIs
Characteristics and Risks of Standardized Options: https://bit.ly/2v9tH6D. Microsoft (MSFT) shares have fallen more than 30% from all-time highs made almost a year ago.
Microsoft (MSFT) and Amazon (AMZN) screened well in a Jefferies survey showing stronger 2026 spending intentions for software, cloud and AI.Jefferies surveyed 4
, /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-backed (MSFT) OpenAI is reportedly facing new government pressure over the rollout of GPT-5.6, a powerful upcoming AI model that U.S. officials want r
NEW YORK, June 26, 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=190209&from=3
NEXT STEPS FOR SHAREHOLDERS: Once you register as a shareholder who purchased shares of MSFT during the timeframe listed above, you will be enrolled in a portfolio monitoring software to provide you with status updates throughout the lifecycle of the case. The deadline to seek to be a lead plaintiff is August 11, 2026. There is no cost or obligation to you to participate in this case.
WHY GROSS LAW FIRM? The Gross Law Firm is a nationally recognized class action law firm, and our mission is to protect the rights of all investors who have suffered as a result of deceit, fraud, and illegal business practices. The Gross Law Firm is committed to ensuring that companies adhere to responsible business practices and engage in good corporate citizenship. The firm seeks recovery on behalf of investors who incurred losses when false and/or misleading statements or the omission of material information by a company lead to artificial inflation of the company's stock. Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT:
The Gross Law Firm
15 West 38th Street, 12th floor
New York, NY, 10018
Email: [email protected]
Phone: (646) 453-8903
On June 26, the blue-chip technology giant Microsoft (NASDAQ: MSFT) received a sudden buy signal in the form of the legendary short trader, Michael Burry, making a long bet on the stock.
Specifically, the ‘Big Short’ investor revealed he has made a bullish MSFT bet by purchasing December 2028 LEAP call options that have a strike price in the low $700 range.
According to Burry, Microsoft stock has become attractive at roughly $350, but he decided to purchase derivatives on account of them being comparatively cheap.
Meanwhile, MSFT shares reacted immediately to the purchase from one of Wall Street’s most famous investors.
Indeed, Microsoft stock opened 4.09% in the green on Friday, June 26, erasing most of the losses it suffered since Wednesday. Still, the technology giant remains more than 11% in the red month-to-date, and an even more severe 22% down year-to-date (YTD).
Microsoft stock price one-week price chart. Source: Google Michael Burry portfolio performance in 2026 Elsewhere, despite the reputation Burry gained for his trading ahead of the Great Recession, his recent track record has been more mixed.
For example, the legendary investor’s long position in Lululemon Athletica (NASDAQ: LULU) remains in the red, and his bearish bet against the semiconductor giant Nvidia (NASDAQ: NVDA) has been teetering on the knife’s edge for weeks.
His bet against Palantir (NASDAQ: PLTR) – a bet he revealed to have partially covered at the same time he unveiled the MSFT long trade – has, on the other hand, been successful, and the software firm is down more than 33% in 2026.
Can Microsoft stock reverse its 2026 losses? Lastly, Michael Burry is far from the only prominent Microsoft bull. Despite the company’s struggles in the 2026 market, Wall Street has remained generally optimistic regarding its future.
Overall, MSFT stock is considered a ‘Strong Buy’ with a 51.88% forecasted rally to $562.10 in the next 12 months, per the data Finold retrieved from TipRanks on June 26.
Wall Street sets Microsoft stock price target for next 12 months. Source: TipRanks Furthermore, despite the volatility gripping the markets since the month started, Stifel Nicolaus’ Brad Redback is the only Wall Street expert to issue a ‘Hold’ recommendation for the equity in recent weeks. Furthermore, even the associated downgraded $400 price target estimates MSFT will rally from its press time price of $367.26 in the coming 52 weeks.
Featured image via Shutterstock
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SummaryMicrosoft Corporation has experienced a $1.3T market cap drawdown, the largest in its history, despite a generally bullish market.MSFT stock now trades at a forward earnings multiple of 21.7, near its 2022 buy levels, presenting a potentially attractive valuation.Recent concerns center on elevated FY26 capex guidance of $190B and significant exposure to OpenAI, which accounts for 45% of commercial RPO.Market sentiment has shifted as software faces AI disruption and OpenAI's reputation has diminished, intensifying scrutiny on MSFT's AI strategy.Looking for a helping hand in the market? Members of iREIT®+HOYA Capital get exclusive ideas and guidance to navigate any climate. Learn More »Sitewide Sale 2026: Get 20% Off Max Zolotukhin/iStock via Getty Images
Introduction Microsoft Corporation (MSFT) used to be a very easy stock to have in our portfolios. Remember when it traded to the low $200s during the 2022 bear market? That was such an easy buy that
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of MSFT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Ives described the current market as a “Twilight Zone,” arguing that investors have become increasingly impatient with hyperscalers waiting for their massive AI investments to translate into meaningful revenue growth.
Microsoft, Meta Face An AI ‘Air Pocket’According to Ives, the market is currently in an “air pocket stage” where Big Tech’s unprecedented spending has yet to produce the financial payoff investors are looking for.
“We are in an ‘air pocket stage’ right now where the $700 billion of Big Tech cap-ex this year is fueling the AI buildout… and tech investors are growing increasingly frustrated by the patience needed around Microsoft and Meta in particular seeing the fruits of their labor,” Ives wrote.
The analyst said Microsoft and Meta are being treated “like they are bear market names that cannot be owned,” even though both remain central to what he calls the Fourth Industrial Revolution.
Instead of buying the companies building AI platforms, investors have rotated into beneficiaries such as Micron and other AI infrastructure names that are already seeing stronger demand and earnings momentum.
Why Micron Is Getting The Market’s AttentionIves believes the divergence reflects timing rather than fundamentals.
“Meta is essentially looking to transform its business and that requires massive investments that will take some time to hit numbers,” Ives said.
That gap has encouraged investors to favor companies with more immediate AI revenue catalysts, even as hyperscalers continue to finance the industry’s expansion.
Dan Ives Says The Opportunity Is In Big TechDespite the recent divergence, Ives believes investors are becoming too focused on short-term uncertainty.
The analyst argues the current weakness in Microsoft and Meta represents “short-term pain for long-term gain,” reiterating his view that the AI revolution remains in its early stages.
“We believe this is Year 3 of a 10-year AI buildout,” Ives wrote, adding that the recent bearish narratives surrounding Big Tech have overshadowed what he sees as “future massive growth prospects.”
For investors willing to look beyond near-term monetization concerns, Ives believes today’s “Twilight Zone” market could ultimately create some of the biggest buying opportunities in the AI trade.
Photo: renderis studio / Shutterstock
Market News and Data brought to you by Benzinga APIs
In this video, I will cover the bull and bear case for two of the biggest names in tech and explain whether the current valuation discount is a gift or a warning sign. Watch the short video to learn more, consider subscribing, and click the special offer link below.
*Stock prices used were from the trading day of June. 24, 2026. The video was published on June. 24, 2026.
Neil Rozenbaum has positions in Meta Platforms. The Motley Fool has positions in and recommends Meta Platforms and Microsoft. The Motley Fool has a disclosure policy. Neil 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.
LOS ANGELES, June 26, 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:
The Schall Law Firm
Brian Schall, Esq.,
www.schallfirm.com
Office: 310-301-3335 [email protected]
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Microsoft (MSFT - Free Report) .
Microsoft currently has an average brokerage recommendation (ABR) of 1.26, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 50 brokerage firms. An ABR of 1.26 approximates between Strong Buy and Buy.
Of the 50 recommendations that derive the current ABR, 42 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 84% and 6% of all recommendations.
Brokerage Recommendation Trends for MSFT
Check price target & stock forecast for Microsoft here>>>
The ABR suggests buying Microsoft, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is MSFT Worth Investing In?Looking at the earnings estimate revisions for Microsoft, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $17.33.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Microsoft. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Microsoft.
NEW YORK, June 26, 2026 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces that a class action lawsuit has been filed against Microsoft Corporation (NASDAQ:MSFT) and certain of the Company’s senior executives for securities fraud after its significant stock drop resulting from potential violations of the federal securities laws.
If you invested in Microsoft, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/microsoft-class-action-lawsuit.
Key Details of the Microsoft ($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.”
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Two of the largest companies on the planet are both in drawdowns, but the dips look nothing alike. So which one should a retirement-focused investor own right now: Apple (NASDAQ: AAPL | AAPL Price Prediction) or Microsoft (NASDAQ: MSFT)?
Apple represents the shallow pullback inside a healthy trend, trading at $275.15, down 10.9% over the past month but still up 1.2% year to date and 36.5% over the past year. Microsoft represents the deeper, more contrarian drawdown, trading at $352.83, down 27.0% year to date and 28.3% lower than a year ago. With the CBOE Volatility Index (VIX) at 20.2, Microsoft’s decline reflects stock-specific weakness against a calm broader market.
Valuation: Microsoft Wins Apple trades at a trailing P/E of 36 and a forward P/E of 34, with a price-to-book ratio above 54x. Microsoft trades at a trailing P/E of 21 and a price-to-book of 6.3. A thesis that has dominated r/stocks puts it bluntly: “Microsoft is now cheaper than the April 2025 Tariff crash, yet TTM EPS is up 30%.” Microsoft is the cheaper stock, both relative to Apple and relative to its own recent history. Edge: Microsoft.
Forward Catalyst: Microsoft Wins Apple’s recovery path runs through hardware. Prediction markets assign a 96.1% probability to an iPhone 18 launch in 2026 and an 84.5% probability to a foldable iPhone before 2027. Demand is already strong: iPhone revenue reached $56.99 billion last quarter, with CEO Tim Cook citing “extraordinary demand for the iPhone 17 lineup.”
Microsoft’s catalyst is larger and already reflected in the numbers. Azure grew 40% last quarter, the AI business hit a $37 billion annualized run rate, up 123% year over year, and commercial remaining performance obligations nearly doubled to $627 billion. Satya Nadella framed it directly: “Our AI business surpassed an annual revenue run rate of $37 billion, up 123% year-over-year.”
Analyst consensus targets back this up at $561.39 for Microsoft versus $314.42 for Apple. Edge: Microsoft.
Downside Risk: Apple Wins This is where Apple claws back a dimension. Apple’s chart is intact: it trades above its 200-day moving average of $269.03, with a beta of just 1.086. Microsoft has lost roughly a quarter of its value in six months, and prediction markets give only a 32% probability that Microsoft’s valuation exceeds the combined Anthropic + OpenAI mark by year-end, a clear signal of the competitive overhang. Microsoft also deployed $30.88 billion of capex in a single quarter, up 84.39% year over year, and any delay in payback could compress returns. Apple’s downside risks (China exposure, tariffs, and elevated debt-to-equity of 1.52) remain, yet the trend has held. Edge: Apple.
Verdict Microsoft appears to be the better dip buy for retirement-focused investors. It is cheaper on every multiple that matters, its AI and Azure engines are compounding at rates Apple’s hardware cycle cannot match, and it pays a higher dividend yield of 1.0% versus Apple’s 0.4%, supported by stronger operating margins of 45.6% and an investment-grade balance sheet with a debt-to-equity ratio of just 0.18.
Retirees forgo some near-term price stability compared with Apple’s milder dip, but they gain a lower entry multiple on a faster-growing business with $627 billion in contracted future revenue already on the books. Apple remains the choice for investors who prioritize buyback-driven capital returns (a fresh $100 billion authorization) and brand-moat stability above all else. For everyone else focused on retirement compounding, Microsoft is the better choice.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
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Item 1 of 2 A man walks by the logo of Microsoft in a shop of Brussels September 17, 2007. Microsoft suffered a stunning defeat on Monday when a European Union court backed a European Commission ruling that the U.S. software giant illegally abused its market power to crush competitors. This logo has been updated and is no longer in use. REUTERS/Sebastien Pirlet (BELGIUM)
[1/2]A man walks by the logo of Microsoft in a shop of Brussels September 17, 2007. Microsoft suffered a stunning defeat on Monday when a European Union court backed a European Commission ruling that... Purchase Licensing Rights, opens new tab Read more
CompaniesROME, June 26 (Reuters) - Italy's antitrust authority said on Friday it had opened an investigation into Microsoft (MSFT.O), opens new tab over alleged unfair commercial practices linked to the price hike of its "Microsoft 365" subscription.
The regulator said the Windows maker did not adequately inform consumers that its Microsoft 365 service had been integrated with artificial intelligence tools Copilot and Designer.
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Consumers were automatically moved to a more expensive subscription plan unless they actively opted out, while receiving insufficient information to decide whether to renew their contracts, the watchdog added in its statement.
It added that the tech giant's practice could be considered aggressive because it unduly limited consumers' freedom of choice.
Microsoft was not immediately available for comment.
Reporting by Giulia Segreti, editing by Alvise Armellini
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