Microsoft stock has declined due to AI investments impacting revenue, but Q2 results beat expectations.

From Nasdaq: 2025-02-10 11:41:52

Microsoft Corporation, a key player in the computer industry, develops software, services, and solutions. With a market cap of $3 trillion, it offers applications, cloud storage, and security solutions worldwide. Despite underperforming the market, MSFT stock has declined 1% in the past year. Its AI investments have impacted revenue and profitability, causing shares to decline.

On Jan. 29, Microsoft reported Q2 results, with EPS of $3.23 surpassing expectations. Revenue was $69.6 billion, beating forecasts. Analysts expect EPS to grow 10.8% to $13.07 for the fiscal year ending in June. With a consensus rating of “Strong Buy” among analysts, MSFT shows a bullish trend, with a potential upside of 22%.

Mizuho Financial Group analyst Gregg Moskowitz reiterated a “Buy” rating on MSFT but lowered the price target to $500, implying a 22% potential upside. The mean price target of $510.35 represents a 24.6% premium to current levels, with a street-high target of $600 suggesting a 46.4% upside. Analysts remain optimistic about Microsoft’s future prospects.



Read more at Nasdaq: Microsoft Stock: Analyst Estimates & Ratings