Shares of Microsoft (MSFT) fell 10% despite beating Q2 earnings expectations, likely due to high capital expenditure and slowing cloud growth. Investors see this as a buying opportunity, but capacity constraints in data centers may hinder returns. Analysts have mixed views, with JPMorgan reducing price target. Consider MSFT-heavy ETFs like IYW, TOPT, XLK, and VGT for exposure to Microsoft’s growth.

Microsoft’s Q2 results exceeded estimates, with revenues and EPS up double digits year-over-year. Azure and cloud services revenues surged 39%, while Microsoft 365 and LinkedIn revenues also showed strong growth. Q3 revenue guidance exceeds estimates, but cloud gross margin may decline due to AI investments. Xbox revenue is also expected to drop.

Analysts have mixed reactions to Microsoft, with JPMorgan lowering price target due to concerns about CPU supply constraints impacting Azure growth. Goldman Sachs maintains a Buy rating but reduces price target. Consider investing in ETFs like IYW, TOPT, XLK, and VGT for exposure to Microsoft’s growth potential.

IYW is a tech-focused ETF with exposure to 141 U.S. tech companies, including Microsoft. TOPT provides exposure to the 21 largest U.S. companies, with Microsoft as a top holding. XLK offers exposure to 70 tech companies, with Microsoft as a key component. VGT focuses on technology companies, with Microsoft as a major holding. These ETFs can help diversify while benefiting from Microsoft’s growth.

Consider investing in ETFs like IYW, TOPT, XLK, and VGT for exposure to Microsoft’s growth potential. These funds offer diversification across tech companies while capitalizing on Microsoft’s performance. With strong revenue growth and positive guidance, Microsoft remains a key player in the tech industry.

Read more at Nasdaq: ETFs to Buy as Microsoft’s Shares Slump Despite Q2 Earnings Beat