The kickoff of a high-profile antitrust case against a peer and an analyst's price target reduction put the hurt on Microsoft (MSFT -2.56%) shares Monday. The tech giant wasn't looking all that mighty on the exchange, with a more than 3% drop in price in late afternoon trading. A big peer's day in courtIt was generally a bearish day for big tech as a whole, with search titan Alphabet taking an uncomfortable turn in the spotlight.The U.S. Department of Justice's artificial intelligence (AI)-related suit agai ...

Core Viewpoint - The "Magnificent Seven" stocks, including Microsoft, have faced a collective decline due to various factors, including the announcement of new tariffs by President Trump, presenting a potential buying opportunity for investors [1][2]. Group 1: Impact of Tariffs on Microsoft - Microsoft heavily relies on imported electronic parts and raw materials for its consumer electronics and Azure data centers, which may become more expensive due to new tariffs [3]. - The company has three options in response to increased costs: pass costs to customers, absorb costs, or delay/cancel data center expansion plans [4]. - Microsoft has already pulled back from some data center expansion plans, indicating a potential preference for absorbing costs or delaying expansion [4]. Group 2: Microsoft Azure's Growth - Microsoft's Intelligent Cloud segment, which includes Azure, generated $25.5 billion in revenue in Q2 of fiscal year 2025, marking a 19% year-over-year increase and accounting for over 36% of total revenue [7]. - Azure is the second-largest cloud service provider, trailing Amazon Web Services (AWS), but has shown impressive growth and competitiveness in the market [8]. - The cloud services industry is still expanding, providing significant growth opportunities for Azure as more companies transition to cloud operations [8]. Group 3: Microsoft's Resilience and Revenue Stability - Microsoft has built a comprehensive ecosystem across various industries, making it the most recession-resistant among the "Magnificent Seven" [9]. - The company generates consistent and recurring revenue, particularly from enterprise clients who are less likely to cut spending on essential software and electronics during economic downturns [10][11]. - While a slight slowdown in revenue may occur, Microsoft's financials are expected to remain stable and predictable in the long term [11]. Group 4: Dividend and Total Returns - Microsoft has been paying dividends since 2003, increasing its annual dividend for 23 consecutive years and by over 160% in the past decade [14]. - Although the dividend yield is below 1%, it contributes significantly to total returns, with Microsoft's stock price increasing approximately 810% over the past decade and total returns around 960% [16]. - The combination of dividends and stock growth potential offers a compelling investment opportunity for investors [16].

If you want full access to all our reports, data and investing ideas, join The Aerospace Forum , the #1 aerospace, defense and airline investment research service on Seeking Alpha, with access to evoX Data Analytics, our in-house developed data analytics platform.In February, I covered Microsoft (NASDAQ: MSFT ) with a buy rating. The stock did not have significant near-term upside, but I still applied a buy rating based on long-term growth prospects. However, since then, the stock price has declined 10% com ...

Group 1 - Microsoft Corporation (NASDAQ: MSFT) is recognized as one of the leading companies globally and is part of the "magnificent seven" [1] - The company has experienced valuation challenges in recent years, but the current market conditions may present new opportunities [1] Group 2 - The author has a long position in Microsoft shares, indicating a personal investment interest in the company [2] - The article reflects the author's personal opinions and research, emphasizing the importance of individual due diligence in investment decisions [3]

Core Viewpoint - The recent decline in the stock market, driven by fears of a global trade war, presents a potential buying opportunity for high-quality stocks like Microsoft, which is positioned well in the AI sector [1][2]. Group 1: Microsoft Stock Performance - Microsoft stock has decreased by 18% amid broader market sell-offs, but upcoming financial results on April 30 could provide insights into its AI advancements and potentially catalyze a stock recovery [3][12]. - The current price-to-earnings (P/E) ratio of Microsoft is 29.6, representing an 11% discount compared to its five-year average of 33.2, making it an attractive buy [12][14]. Group 2: AI Developments and Revenue Potential - Microsoft has invested approximately $14 billion in OpenAI since 2016, leading to the development of its AI virtual assistant, Copilot, which is integrated into various software products [3][4]. - Copilot is available as a paid add-on for Microsoft 365, with potential to generate significant recurring revenue, estimated at around $30 per license per month for over 400 million licenses [4][5]. - Demand for Copilot has surged, with usage increasing by 60% in the second quarter compared to the first quarter, and customers who adopted it early expanded their licenses tenfold [5][6]. Group 3: Azure Cloud Platform - The Azure cloud platform is central to Microsoft's AI strategy, providing businesses with access to advanced computing resources and large language models [7][8]. - Azure AI revenue grew by 157% year-over-year in the second quarter, contributing significantly to Azure's overall revenue growth of 31% [9]. - Microsoft plans to invest over $80 billion in AI data center infrastructure and chips during fiscal 2025, although potential trade disruptions could impact these expenditures [10][11]. Group 4: Long-term Outlook and Economic Resilience - AI is projected to add $15.7 trillion to the global economy by 2030, positioning Microsoft as a leader in this growth area [15]. - Microsoft may be less affected by trade tensions compared to other companies, as its primary offerings are software and digital services, which are less susceptible to tariffs [16].

Core Viewpoint - Microsoft employees are increasingly protesting against the company's involvement in Israel's military actions in Gaza, leading to disruptions at high-profile events and calls for the company to sever ties with Israel [1][4][5]. Group 1: Employee Protests - Protests have occurred multiple times, including disruptions during events celebrating Microsoft's 50th anniversary, where employees expressed their discontent with the company's role in the ongoing conflict in Gaza [1][2]. - Employees have organized rallies and demonstrations, with slogans such as "Microsoft powers genocide" projected during events, highlighting the perceived complicity of the company in military actions [3][4]. - The protests reflect a growing unrest among employees, with some considering leaving the company due to ethical concerns regarding its contracts with the Israeli government [5][12]. Group 2: Internal Discontent - Internal discussions among employees have become contentious, with complaints about perceived censorship of pro-Palestinian viewpoints on company message boards [14][15]. - Employees have reported a double standard in how discussions about Israel and Palestine are moderated, leading to frustration and calls for more open dialogue [15][21]. - The situation has been described as nearing a "tipping point," with former employees noting a significant rise in activism and organization around the issue [7][11]. Group 3: Company Response and Actions - Microsoft has not publicly commented on the protests or the concerns raised by employees, which has further fueled discontent [5]. - The company has faced scrutiny over its AI and cloud computing services being utilized by the Israeli military, leading to calls for transparency regarding its contracts [19][23]. - Some employees have taken direct action, such as resigning in protest of the company's policies and practices, citing a conflict with their personal ethics [24].

Keybanc Capital Markets analyst Jackson Ader downgraded Microsoft Corp MSFT on Thursday from Overweight to Sector Weight.Ader expects some durable macro themes to play out during the on-calendar season.His checks in his sub-sectors and within his VAR survey were both cautious on the outlook for the remainder of the year.Also Read: Microsoft To End China Joint Venture Wicresoft, Axe 2,000 JobsAder wrote that even referring to conversations in early March with some marketing partners, it sounded like first-qu ...

Nebius Group N.V. (NBIS) is an upcoming player in the AI-infrastructure market, while Microsoft Corporation (MSFT) is an established tech behemoth. Microsoft’s Azure cloud platform is the second-largest cloud platform after Amazon Web Services or the AWS platform. MSFT’s investment in OpenAI has made it the go-to platform for innovative AI applications.The rapid AI proliferation is transforming the entire tech scene, and AI infrastructure has become a high-stakes battleground for tech companies. Per an IDC ...

Overnight Microsoft (NASDAQ: MSFT) received a rather uncommon price target: not applicable. Specifically, KeyBanc’s Jackson Ader removed the technology giant’s previous target of $575 due to heightened sector and overall uncertainty.Furthermore, Ader downgraded MSFT stock’s rating from ‘overweight’ – ‘buy’ – to ‘sector weight’ – ‘neutral’ – explaining that the ongoing economic situation is reducing flexibility while increasing pressures on the technology giant’s margins.Microsoft has been generously spendin ...

Microsoft (MSFT -3.67%) had one of its more forgettable sessions on the stock market Wednesday, with its share price melting by 3.7% at closing time. Yet this had less to do with its own operations, and more to do with a move by a business in which it's invested. That decline was steeper than even the gloomy S&P 500 index's 2.2% fall on the day.The big buzz in the AI worldIn an article published this morning and citing an unnamed "person familiar with the matter," Bloomberg wrote that leading artificial int ...