NASDAQ:MSFT
Microsoft Corp (MSFT)
Financials 
Technical Analysis 
Aug 6, 2026, 12:00 amThis summary was created by AI, based on 129 opinions in the last 12 months.
Microsoft Corp (MSFT) continues to garner mixed reviews from analysts as it navigates challenges within the AI landscape and its software business. While the stock has faced notable volatility, including a recent dip tied to concerns over its increased capital expenditures for AI and underwhelming Azure growth, many experts still highlight its strong balance sheet, solid cash flow, and growth potential in various sectors such as cloud and productivity software. The company's ongoing integration of AI technologies into its offerings, including the Co-Pilot feature, is viewed as a long-term growth driver, despite initial setbacks. There is a strong consensus that MSFT remains a fundamentally sound investment, attributed to its diverse revenue streams and robust market positioning. Analysts suggest that the current stock price may offer a compelling entry point, especially given its historical context and growth trajectory, making it an attractive hold for long-term investors.
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Premium contentMicrosoft Corp engages in the development and support of software, services, devices, and solutions. It operates through the following business segments: Productivity and Business Processes; Intelligent Cloud; and More Personal Computing. The Productivity and Business Processes segment comprises products and services in the portfolio of productivity, communication, and information services of the company spanning a variety of devices and platform. The Intelligent Cloud segment refers to the public, private, and hybrid serve products and cloud services of the company which can power modern business. The More Personal Computing segment encompasses products and services geared towards the interests of end users, developers, and IT professionals across all devices. The firm also offers operating systems; cross-device productivity applications; server applications; business solution applications; desktop and server management tools; software development tools; video games; personal computers, tablets; gaming and entertainment consoles; other intelligent devices; and related accessories. The company was founded by Paul Gardner Allen and William Henry Gates III in 1975 and is headquartered in Redmond, WA. Social media mentions are up 514% in the past 24h.
It reports this week. They last reported good numbers, but their guidance increased capex spending on AI to reverse an earlier statement that they would decrease it. So, shares fell. Also, they reported a slight decline in their Azure cloud business growth rate. He wants them to report no added spending, Azure growth, positive commentary in Co-Pilot, and their core Windows software suite isn't threatened by AI.
Lots going on with the Mag 7 right now. Both GOOG and MSFT lapped AMZN last year in terms of hyperscalers, AI, and data centres; due to AWS not growing as it used to.
He favours MSFT as a play on data centres and quantum computing. Better that investors choose between GOOG and MSFT as better opportunities than AMZN moving forward.
David DriscollPremium contentMicrosoft Corp engages in the development and support of software, services, devices, and solutions. It operates through the following business segments: Productivity and Business Processes; Intelligent Cloud; and More Personal Computing. The Productivity and Business Processes segment comprises products and services in the portfolio of productivity, communication, and information services of the company spanning a variety of devices and platform. The Intelligent Cloud segment refers to the public, private, and hybrid serve products and cloud services of the company which can power modern business. The More Personal Computing segment encompasses products and services geared towards the interests of end users, developers, and IT professionals across all devices. The firm also offers operating systems; cross-device productivity applications; server applications; business solution applications; desktop and server management tools; software development tools; video games; personal computers, tablets; gaming and entertainment consoles; other intelligent devices; and related accessories. The company was founded by Paul Gardner Allen and William Henry Gates III in 1975 and is headquartered in Redmond, WA. Social media mentions are up 250% in the past 24h.
Is the largest software company in the world, but also have a fast-growing, massive cloud business plus OpenAI to increase cloud sales. But AI is disrupting their Office 365 business. Their CoPilot worked poorly at first, but suddenly improved a lot.
Nick Mersch, CFAIt has been kind of out of favour but has a track record of innovation. It had the foresight to invest in AI in 2019. It has transitioned to a recurring revenue operation with a monthly subscription system. It can package together a base of suites which gives it a strong competitive moat. It is very profitable with operating margins over 40%. Also has a very strong public cloud business. Capital spending has increased along with all the other big techs but has the flexibility to pull back according to demand. Buy 71 Hold 2 Sell 0
(Analysts’ price target is $630.08)
Christine PooleIt has a number of drivers but the incumbent business took it to where it was. There are a number of catalysts such as AI and it has kind of re-invented itself. Sees a reasonable growth trajectory ahead of it. With AI, unless profitability starts to show up in volume, then we would see a slowdown. Google and the metrics of the underlying returns of Amazon's data centre business look interesting.
Darren SissonsPremium contentWe reiterate MSFT as a TOP PICK. The company announced today a new suite of AI products for retailers to assist in everything from inventory purchasing and management, thru product discovery, right through to final sale. The 32% ROE and commitment by management to continue to aggressively buy back shares makes the 10x book value more palatable. We will continue to recommend a tight stop at $453, looking to achieve $600 -- upside potential of 25%. Yield 0.7%
(Analysts’ price target is $629.37)
Is a long-term buy and hold. Has owned this for 20 years. Would add now. Not worried at all about this pullback. Is the #1 recurring revenue business in the world. Not expensive. Is massive and trades at a beta of 1. Will beat the market long-term. As high a quality as you can get. Clean balance sheet. 24% return on capital. They make great products. The top software name.
Matt KacurBy the rules, he can't make a Past Pick a Top Pick; otherwise, he would have. Can't get enough chips to meet demand. This company (along with AMZN and GOOG) is going to distribute AI through the cloud into our day-to-day lives. Remains extremely bullish on it.
Dan RohintonAmazing business, but at 35x PE is a little expensive. Return on capital is trending down a little. Is one of his largest positions. If you own this, continue to hold. Enter this 20-30% lower around the low-20s PE.
Jason Del VicarioStill has everything going for it. Pullback is a good opportunity.
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You can't make rational sense of market moves in the short term. Market's nitpicking about missing the "whisper" number for Azure. Come on. Short-term blip. Numbers show no evidence that things are going the wrong way; in fact, things are accelerating and improving.
(Analysts’ price target is $606.64)Rare to find a high-quality company like this trading below 25x PE. He expects topline and bottom line growth by double digits. Copilot's worth the extra $$. Yield is 0.85%.