Microsoft Corp (NASDAQ:MSFT) stock is taking a breather after a massive 10% rally on Wednesday.
Nimrit Kang, Chief Investment Officer & Senior Portfolio Manager at NorthStar Asset Management, discusses his investment approach, long-term conviction in Microsoft, and views on inflation and the bond market.
Microsoft Corp's (NASDAQ:MSFT) shares may have weathered recent volatility better than some of its peers, but analysts at Wedbush are no longer quite as bullish on the tech giant's near-term prospects. In a note to clients, the broker cut its 12-month price target for the stock from $550 to $475, citing growing uncertainty around US trade policy and its potential knock-on effect on corporate spending.
Karen Firestone, Executive Chairman Aureus Asset Management, joins CNBC's "Halftime Report" to explain why she's buying more Microsoft.
Microsoft Corp. (NASDAQ: MSFT) shares have had a bad year, but Apple Inc.
Microsoft Corporation NASDAQ: MSFT was already down about 9% for the year. So shareholders can't be too scared of the additional sell-off in MSFT stock since the Trump tariff policy caused the markets to swoon.
Microsoft is discussing job cuts that could happen as soon as next month. The cuts would aim to improve metrics such as "span of control" and "PM ratio.
Two Democratic U.S. senators demanded information from Microsoft and Google about their cloud computing partnerships with artificial intelligence companies, expressing concern the arrangements could stifle competition in the cutting-edge industry.
On Monday, Microsoft reportedly terminated the roles of two software engineers, Ibtihal Aboussad and Vaniya Agrawal, who protested the company's reported dealings with the Israeli military during Microsoft's Copilot and 50th anniversary event last week.
Microsoft's joint venture Wicresoft will cease its China operations from Tuesday, a move that will lead to the layoff of about 2,000 staff, Chinese media outlet Caijing reported on Monday, citing sources.
President Trump's tariffs and China's retaliation have triggered mayhem in tech stocks, with the Nasdaq crumbling into a bear market. Yet, Microsoft stock has outperformed tech and software peers since February 2025, demonstrating its resilience as a harbor for tech investors. MSFT's sticky enterprise and cloud platform layer could prove resolute even as enterprise spending could be lowered globally, bolstered by bundling.
Microsoft remains a defensive buy due to its diversified business model, strong margins, and significant cash generation, making it resilient amidst macroeconomic uncertainties and tariff issues. The company's strategic investments in AI and cloud services, particularly Azure, position it well for long-term growth despite near-term investments. Despite market volatility, Microsoft's valuation remains attractive, with potential upside to the current level.