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Microsoft Faces Decade-Low Valuation as Azure Surges and Copilot Upgrades Near

A May 1 Copilot overhaul, including a $99 Microsoft 365 E7 tier, signals a push to monetize AI despite Azure supply limits.

Overview

  • Shares are down roughly 22%–28% from last year’s peak, putting Microsoft near a decade-low valuation versus the S&P 500.
  • Fiscal Q2 revenue reached $81.3 billion, up 17% year over year, with Azure growing about 39% but constrained by data-center capacity.
  • Microsoft is pouring capital into infrastructure, citing a $37.5 billion quarter and multi‑year plans approaching $100 billion to expand capacity.
  • Product momentum includes Copilot Cowork announced on March 9 and Copilot upgrades plus the Microsoft 365 E7 plan at $99 per user per month set for May 1.
  • The board declared a $0.91 quarterly dividend for shareholders of record on May 21, payable June 11, as most analysts maintain bullish ratings despite near‑term Azure supply headwinds.