Microsoft stock surges 10% on tariff pause, offers growth and value investment

From Nasdaq: 2025-04-15 07:14:00

Microsoft Corporation (NASDAQ: MSFT) stock surged over 10% after the Trump administration announced a 90-day pause on retaliatory tariffs, following a 52-week low. Concerns about volatility in technology stocks persist as MSFT ramps up AI infrastructure with a hit to free cash flow. However, the stock plays a dual role as a growth and value investment.

Despite a low dividend yield, Microsoft is expected to increase its dividend after reporting fourth-quarter earnings, marking 24 consecutive years of increases. The annual payout per share is strong compared to other tech giants. With a history of share buybacks and dividend growth, Microsoft continues to reward shareholders while maintaining a modest payout ratio.

Tariffs may impact Microsoft’s AI infrastructure and personal computing business, potentially affecting revenue and consumer purchasing decisions. Analysts are split on the likelihood of a recession and its impact on ad revenue. Microsoft’s upcoming earnings report in April may offer more clarity on future guidance and market conditions.

Analysts hold a Moderate Buy rating on MSFT stock with a price target of $504.90, anticipating a 28% gain from the current price. Microsoft’s earnings report on April 30 may introduce volatility, but long-term investors may find value in the stock post-earnings. MarketBeat highlights five top stocks recommended by analysts, providing insight for savvy investors looking for opportunities in the market.



Read more at Nasdaq: Microsoft: A Blend of Growth and Value Amid Tariff Concerns