Investors are desensitized to cyberattacks and have other issues on their mind ahead of Microsoft's earnings report next week, analysts say.
The strong growth in investing in the technology infrastructure to support generative AI has been a focus the past year and is projected to expand this year. Microsoft stock has traded up 28.0% since the last earnings release and is up 37.7% since January 2024. META stock has been up 30.4% since the Q1 release in April and is up 106.9% since January 2024.
Microsoft is investigating whether a leak from its early alert system for cybersecurity companies allowed Chinese hackers to exploit flaws in its SharePoint service before they were patched, Bloomberg News reported on Friday.
Microsoft's fiscal Q4 results promise strong performance with an estimated 13.88% revenue growth from AI investments and Azure's 34-35% expansion.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Wedbush calls Microsoft Corp (NASDAQ:MSFT) the “Scottie Scheffler of software”: steady, world-class, and at the top of its game. The investment bank expects more good news when the Silicon Valley updates investors next week, driven by the company's front-runner status in artificial intelligence (AI).
Beyond analysts' top-and-bottom-line estimates for Microsoft (MSFT), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended June 2025.
In a memo to Microsoft's more than 200,000 employees on Thursday, CEO Satya Nadella said the company's layoffs this year have been "weighing heavily" on him. The company has cut over 15,000 people in 2025, and investors have rewarded Microsoft for it, pushing the stock's closing price above $500 for the first time on July 9.
From an earnings surprise perspective, Microsoft resembles a student who consistently earns straight A+ grades on every exam. The company's dominant cloud position and aggressive AI investments provide a durable competitive moat, enabling cross-selling and long-term growth opportunities. Valuation remains attractive given Microsoft's growth profile, with forward P/E and Price/FCF ratios expected to compress as earnings and cash flow expand.
Earnings season is underway, so it's time for investors to focus on some of the top technology stocks. One of the most closely watched names will be Microsoft Corporation NASDAQ: MSFT.
A U.S. lawmaker on Thursday pressed the U.S. Defense Department for further details on what information the U.S. military shared with Chinese engineers as part of a cloud computing services contract with Microsoft.
Microsoft said some of the hackers involved in the cyberespionage sweep aimed at the U.S. tech giant's SharePoint servers are now using ransomware, a potential escalation in the wide-ranging spy campaign.