Microsoft’s second-quarter financial results exceeded expectations, but the stock plummeted 13% due to disappointing cloud business growth. The selloff pushed the stock below its 50-day moving average. Despite massive investments in AI, Azure growth only slightly surpassed estimates. The high valuation premium on Microsoft shares demands perfection, with Azure growth expected to slow in the current quarter. Wall Street remains bullish on Microsoft, with a consensus rating of “Strong Buy” and a target price indicating over 45% potential upside. There are concerns about the valuation floor and competition in the AI sector.

Read more at Barchart: As Microsoft Stock Crashes Below Key Support Levels, Should You Buy the Dip?