Consider Purchasing Microsoft Stock: It's at Its Lowest Price in Ten Years.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 13 2026
0mins
Should l Buy MSFT?
Source: Barron's
- Emergence of Cloud Computing: The cloud began to gain prominence in 2011, marking a significant shift in the technology landscape.
- Marc Andreessen's Insight: Venture capitalist Marc Andreessen highlighted the trend by stating that "software is eating the world," indicating a move away from hardware-centric models.
- Commoditization of Hardware: As software became more dominant, hardware started to be viewed as a commodity, impacting IT budgets.
- Shift in IT Budgets: Business software increasingly took precedence in IT spending, reflecting the changing priorities in technology investments.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 414.440
Low
500.00
Averages
631.36
High
678.00
Current: 414.440
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company. The Company develops and supports software, services, devices, and solutions. The Company’s segments include Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services. This segment primarily comprises: Office Commercial, Office Consumer, LinkedIn, and Dynamics business solutions. The Intelligent Cloud segment consists of server products and cloud services, including Azure and other cloud services, SQL Server, Windows Server, Visual Studio, System Center, and related Client Access Licenses (CALs), and Nuance and GitHub; and Enterprise Services, including enterprise support services, industry solutions and Nuance professional services. The More Personal Computing segment primarily comprises Windows, Devices, Gaming, and search and news advertising.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Microsoft's Cloud Business Shows Strong Growth
- Cloud Revenue Surge: Microsoft's cloud computing unit, Azure, reported a 40% year-over-year revenue increase in its latest earnings report, marking the 11th consecutive quarter of over 30% growth, indicating sustained strong demand for computing power and AI services that is expected to further drive future performance.
- Annual Recurring Revenue Spike: The annual recurring revenue (ARR) for Microsoft's AI business soared by 123%, reflecting accelerated customer adoption of AI solutions; despite a 46% decline in bookings in constant currencies, excluding OpenAI, bookings still rose by 26%, demonstrating strong market demand for its products.
- Overall Strong Revenue Performance: Microsoft achieved an 18% year-over-year revenue increase to $82.89 billion, with adjusted earnings per share (EPS) rising 21% to $4.27, surpassing analyst expectations, showcasing robust performance across multiple business segments, particularly in intelligent cloud and productivity.
- Optimistic Future Outlook: The company projects Q4 revenue for fiscal 2026 to be between $86.7 billion and $87.8 billion, with Azure revenue expected to grow by 39% to 40% in constant currencies, indicating sustained growth potential in the cloud computing sector, and while stock performance has been stagnant, long-term investment value remains significant.
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- Rejection of Proposal: Plan to spin out OpenAI's robotics and consumer hardware divisions was rejected.
- Implications for OpenAI: The decision may impact OpenAI's strategic direction and focus on its core AI technologies.
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Microsoft's Azure Growth Surpasses Expectations
- Cloud Business Recovery: Microsoft's latest earnings report reveals that Azure and other cloud services grew by 40% in Q1 2026, exceeding analysts' expectations of 39%, indicating an improvement in the company's cloud performance that may alleviate investor concerns.
- Overall Performance Improvement: In addition to Azure, Microsoft surpassed market expectations for both revenue and net income in the latest quarter, demonstrating a healthy overall operational status that boosts market confidence in its future growth.
- Signs of Stock Price Rebound: Although Microsoft's stock has fallen 14% since the beginning of the year, it has risen 12% in the past month, indicating that investors are beginning to reassess its value, potentially laying the groundwork for future stock price increases.
- AI Investment Potential: Microsoft's significant exposure and ongoing investments in artificial intelligence make it attractive even in the current high valuation environment, suggesting that holding the stock long-term could yield substantial returns.
See More
Software Stocks Benefit from Sector Rotation
- Sector Rotation Trend: Software stocks like Oracle (ORCL) and Microsoft (MSFT) are emerging as key beneficiaries in the technology sector rotation, indicating a shift in leadership from semiconductor stocks to software, potentially creating new investment opportunities.
- ETF Performance Recovery: The iShares Expanded Tech-Software Sector ETF (IGV) shows signs of long-term oversold conditions after a severe six-month correction, suggesting it may continue to rise, thereby boosting investor confidence.
- Improved Intermediate Momentum: IGV's weekly MACD has issued a 'buy' signal, indicating significant improvement in intermediate momentum that supports an upward trend in Q2, with expectations to challenge major resistance near $97 based on the weekly cloud model.
- Reversal Pattern Formation: The daily chart of IGV is forming a bullish inverse head-and-shoulders pattern, with short-term momentum beginning to expand off the support near the 50-day moving average, highlighting the potential for software stocks to reassert leadership within the technology sector.
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Amazon Launches Supply Chain Services, Boosting Market Competitiveness
- Service Launch: Amazon unveiled Amazon Supply Chain Services (ASCS) on Monday, allowing businesses to access its comprehensive freight, distribution, fulfillment, and parcel shipping capabilities, marking a significant step in monetizing its logistics network.
- Client Sign-ups: Initial clients include Procter & Gamble, 3M, Lands' End, and American Eagle Outfitters, underscoring the growing appeal of Amazon's logistics infrastructure and further solidifying its market position.
- Positive Market Reaction: Amazon's stock rose 3% on Monday, hitting an all-time high of $276 per share, with a year-to-date increase of 17%, reflecting investor confidence in its new business model.
- Significant Industry Impact: Competitors UPS and FedEx saw their shares drop 9% and 8%, respectively, indicating that Amazon's competitive strength in logistics is increasing and could reshape the industry landscape.
See More
Elon Musk's Odds in OpenAI Lawsuit Drop to 36%
- Odds Decline: Elon Musk's chances of winning his lawsuit against OpenAI have dropped to 36%, marking the lowest probability since the trial began, indicating increasing skepticism from the court that could impact his future business decisions.
- Lawsuit Background: Musk filed the lawsuit in 2024 against OpenAI's CEO Sam Altman and President Greg Brockman, claiming they failed to maintain the company's nonprofit status, involving his $38 million donation allegedly used for unauthorized commercial purposes, which could tarnish OpenAI's reputation.
- Court Dynamics: During the trial, OpenAI's attorney questioned Musk about the capped nature of Microsoft's investments and his involvement in negotiations regarding the company's structure, raising doubts about Musk's understanding of OpenAI's operations, which may influence the jury's perception.
- Settlement Attempts: Just days before the trial commenced, Musk texted Brockman about a potential settlement, indicating his concerns about the case's outcome, which could affect his future relationship with OpenAI and his investment strategy in the AI sector.
See More
Microsoft's Cloud Business Shows Strong Growth
- Cloud Revenue Surge: Microsoft's cloud computing unit, Azure, reported a 40% year-over-year revenue increase in its latest earnings report, marking the 11th consecutive quarter of over 30% growth, indicating sustained strong demand for computing power and AI services that is expected to further drive future performance.
- Annual Recurring Revenue Spike: The annual recurring revenue (ARR) for Microsoft's AI business soared by 123%, reflecting accelerated customer adoption of AI solutions; despite a 46% decline in bookings in constant currencies, excluding OpenAI, bookings still rose by 26%, demonstrating strong market demand for its products.
- Overall Strong Revenue Performance: Microsoft achieved an 18% year-over-year revenue increase to $82.89 billion, with adjusted earnings per share (EPS) rising 21% to $4.27, surpassing analyst expectations, showcasing robust performance across multiple business segments, particularly in intelligent cloud and productivity.
- Optimistic Future Outlook: The company projects Q4 revenue for fiscal 2026 to be between $86.7 billion and $87.8 billion, with Azure revenue expected to grow by 39% to 40% in constant currencies, indicating sustained growth potential in the cloud computing sector, and while stock performance has been stagnant, long-term investment value remains significant.
See More
WSJ: Proposal to Separate OpenAI's Robotics and Consumer Hardware Divisions Denied
- Rejection of Proposal: Plan to spin out OpenAI's robotics and consumer hardware divisions was rejected.
- Implications for OpenAI: The decision may impact OpenAI's strategic direction and focus on its core AI technologies.
See More
Microsoft's Azure Growth Surpasses Expectations
- Cloud Business Recovery: Microsoft's latest earnings report reveals that Azure and other cloud services grew by 40% in Q1 2026, exceeding analysts' expectations of 39%, indicating an improvement in the company's cloud performance that may alleviate investor concerns.
- Overall Performance Improvement: In addition to Azure, Microsoft surpassed market expectations for both revenue and net income in the latest quarter, demonstrating a healthy overall operational status that boosts market confidence in its future growth.
- Signs of Stock Price Rebound: Although Microsoft's stock has fallen 14% since the beginning of the year, it has risen 12% in the past month, indicating that investors are beginning to reassess its value, potentially laying the groundwork for future stock price increases.
- AI Investment Potential: Microsoft's significant exposure and ongoing investments in artificial intelligence make it attractive even in the current high valuation environment, suggesting that holding the stock long-term could yield substantial returns.
See More
Software Stocks Benefit from Sector Rotation
- Sector Rotation Trend: Software stocks like Oracle (ORCL) and Microsoft (MSFT) are emerging as key beneficiaries in the technology sector rotation, indicating a shift in leadership from semiconductor stocks to software, potentially creating new investment opportunities.
- ETF Performance Recovery: The iShares Expanded Tech-Software Sector ETF (IGV) shows signs of long-term oversold conditions after a severe six-month correction, suggesting it may continue to rise, thereby boosting investor confidence.
- Improved Intermediate Momentum: IGV's weekly MACD has issued a 'buy' signal, indicating significant improvement in intermediate momentum that supports an upward trend in Q2, with expectations to challenge major resistance near $97 based on the weekly cloud model.
- Reversal Pattern Formation: The daily chart of IGV is forming a bullish inverse head-and-shoulders pattern, with short-term momentum beginning to expand off the support near the 50-day moving average, highlighting the potential for software stocks to reassert leadership within the technology sector.
See More
Amazon Launches Supply Chain Services, Boosting Market Competitiveness
- Service Launch: Amazon unveiled Amazon Supply Chain Services (ASCS) on Monday, allowing businesses to access its comprehensive freight, distribution, fulfillment, and parcel shipping capabilities, marking a significant step in monetizing its logistics network.
- Client Sign-ups: Initial clients include Procter & Gamble, 3M, Lands' End, and American Eagle Outfitters, underscoring the growing appeal of Amazon's logistics infrastructure and further solidifying its market position.
- Positive Market Reaction: Amazon's stock rose 3% on Monday, hitting an all-time high of $276 per share, with a year-to-date increase of 17%, reflecting investor confidence in its new business model.
- Significant Industry Impact: Competitors UPS and FedEx saw their shares drop 9% and 8%, respectively, indicating that Amazon's competitive strength in logistics is increasing and could reshape the industry landscape.
See More
Elon Musk's Odds in OpenAI Lawsuit Drop to 36%
- Odds Decline: Elon Musk's chances of winning his lawsuit against OpenAI have dropped to 36%, marking the lowest probability since the trial began, indicating increasing skepticism from the court that could impact his future business decisions.
- Lawsuit Background: Musk filed the lawsuit in 2024 against OpenAI's CEO Sam Altman and President Greg Brockman, claiming they failed to maintain the company's nonprofit status, involving his $38 million donation allegedly used for unauthorized commercial purposes, which could tarnish OpenAI's reputation.
- Court Dynamics: During the trial, OpenAI's attorney questioned Musk about the capped nature of Microsoft's investments and his involvement in negotiations regarding the company's structure, raising doubts about Musk's understanding of OpenAI's operations, which may influence the jury's perception.
- Settlement Attempts: Just days before the trial commenced, Musk texted Brockman about a potential settlement, indicating his concerns about the case's outcome, which could affect his future relationship with OpenAI and his investment strategy in the AI sector.
See More
