Microsoft’s target price was cut

This wasn’t a “one-quarter surprise” story.

Azure and Copilot demand stayed strong, supply is the real constraint.

The target price was trimmed for one reason:

AI capex is higher than expected.

But the conclusion didn’t change —

more spending doesn’t mean weaker business,

it means AI is moving deeper into the core.

Microsoft -10%! Overreaction? A Buy at $400?

Microsoft sank 10% despite solid fundamentals. Q2 revenue grew 15% YoY in constant currency, beating expectations, with Azure up 38% and Microsoft 365 Commercial rising 14%, driven by steady subscriber and pricing gains. However, ongoing supply-chain constraints capped upside versus buy-side hopes, reviving concerns over near-term AI monetization and delivery capacity.

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Comments

LazyCat Invests
08:10
LazyCat Invests
Good take
Chinny168
06:31
Chinny168
Great article, would you like to share it?
Chinny168
06:31
Chinny168
Great article, would you like to share it?

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