Microsoft Earnings Report
Microsoft (NASDAQ: MSFT) experienced a significant stock drop of over 12% on Thursday following its Q2 earnings release. Despite reporting a revenue increase of 17% to $81.3 billion and a net income surge of 60% to $38.5 billion ($5.16 per share), the sell-off was prompted by concerns over slowing growth in its Azure cloud services, which decreased slightly from 40% to 39% in the latest quarter. Additionally, the company reported a record $37.5 billion in capital expenditures, primarily directed towards AI-related hardware, raising investor concerns about returns on these investments.
Although some analysts downgraded price targets following the report—ranging from $550 to $650 per share—99% of Wall Street still rates Microsoft as a “buy,” with a median price target suggesting a potential growth of 41% to 47% over the next year. This performance positions Microsoft as the top prospect among the “Magnificent Seven” stocks, reflecting strong confidence from analysts despite the recent market fluctuation.
