Microsoft shares have fallen about 12% since its Q2 results due to investor frustration over slow growth in Azure and Microsoft 365 Commercial. However, Jefferies believes the upcoming Q3 report offers a chance to reset the narrative, focusing on whether Microsoft 365's AI-powered Copilot is gaining traction with enterprise customers. Azure growth is expected to continue steadily around 37-38%, with capacity constraints understood by investors. Jefferies also highlights sustained demand for cloud capacity and AI investments, forecasting operating income growth of 18% in fiscal 2026 and sees Microsoft's valuation as attractive compared to peers like Alphabet and Amazon.
In Q2 2026, top contributors to growth included Taiwan Semiconductor Manufacturing, Alphabet, United Rentals, Apple, and Visa. Alphabet’s Google Search and Cloud segments showed robust revenue growth of 19% and 63%, respectively, boosting operating i...
Microsoft is instructing its sales team to highlight the efficiency and cost advantages of its own AI models compared to competitors like OpenAI, Google, and Anthropic. This shift comes as Microsoft replaces some third-party AI models in apps like Wo...
The SPDR NYSE Technology ETF (XNTK) has significantly outperformed the Invesco QQQ Trust (QQQ) over the past year, returning 51.65% compared to QQQ's 28.43%. XNTK uses an equal-weight approach focusing solely on about 35 tech leaders, capturing broad...
Jim Cramer cautioned that the recent rally in Big Tech stocks like Alphabet, Microsoft, Meta, and Amazon might be more about investor optimism than real improvements in their business fundamentals. Despite positive news such as Warren Buffett's endor...
Microsoft fixed a major security vulnerability in the remastered Age of Empires II that could let hackers take control of a victim's computer by sending a malicious game invite. The flaw, discovered with AI assistance, allowed remote code execution i...
