Microsoft’s financial results have been solid, with revenue up 17% in Q2 2026 to $81.3 billion. However, the stock has dropped 22% in the last six months due to concerns about slowing Azure growth. Despite this, Microsoft’s forward P/E ratio of 24.7 makes it an attractive buy for long-term investors.

The market wanted to see accelerating growth from Microsoft, leading to a stock decline despite solid financials. Azure revenue growth is stabilizing, and the company’s high capex spending has been factored into the stock price. Microsoft’s strong position in cloud computing and AI makes it a good investment opportunity at current levels.

Investors should consider buying Microsoft stock now, as the company remains a leader in cloud computing and AI with strong competitive advantages. While capex spending could pose a risk, Microsoft has a track record of cutting costs if needed. The stock is trading at a reasonable valuation and is a buy for investors with a long-term horizon.

Read more at Nasdaq: Down 22% in 6 Months, Is Microsoft Stock a Buy?