Overview
- Microsoft shares are down about 23% this year and roughly 30% from their peak as investors question the payoff from its AI push.
- Last quarter the company posted $81.3 billion in revenue, up 17% year over year, with Azure cloud revenue growing about 39%.
- Microsoft disclosed $37.5 billion in quarterly capital spending to build AI data centers, and investors worry this will squeeze profit margins.
- Goldman Sachs reaffirmed a buy rating with a $600 price target, while other analysts flagged risks from slow Copilot monetization and tougher competition.
- Microsoft reported 15 million paid Microsoft 365 Copilot seats, about 3.3% of its commercial base, showing early traction but leaving most of the monetization still ahead.