Microsoft Corp's stock has fallen 3.00%, hitting a 20-day low, despite the broader market's positive performance with the Nasdaq-100 and S&P 500 both up over 0.4%.
The decline in Microsoft's stock comes amid the launch of its 'Elevate for Educators' program, which aims to provide free AI tools and resources to educators and students. This initiative reflects Microsoft's commitment to enhancing educational quality and supporting students in an AI-driven future. However, the stock's drop suggests a potential sector rotation, as investors may be reallocating funds to other sectors that are performing better in the current market environment.
This program is expected to strengthen Microsoft's position in the educational technology sector, but the immediate market reaction indicates that investors are cautious, possibly due to broader economic concerns or shifts in market sentiment.
Wall Street analysts forecast MSFT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MSFT is 631.36 USD with a low forecast of 500.00 USD and a high forecast of 678.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
Wall Street analysts forecast MSFT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MSFT is 631.36 USD with a low forecast of 500.00 USD and a high forecast of 678.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 451.140
Low
500.00
Averages
631.36
High
678.00
Current: 451.140
Low
500.00
Averages
631.36
High
678.00
UBS
Buy
maintain
$650 -> $600
2026-01-23
New
Reason
UBS
Price Target
$650 -> $600
AI Analysis
2026-01-23
New
maintain
Buy
Reason
UBS lowered the firm's price target on Microsoft to $600 from $650 and keeps a Buy rating on the shares. The continued ramp of Microsoft's large Fairwater AI data centers in Atlanta and Wisconsin is emerging as a key near-term catalyst for Azure growth, with the Wisconsin site coming online in Q1, the analyst tells investors in a research note. Progress at the Wisconsin build-out supports a higher Azure growth outlook ahead of Microsoft's January 28 earnings report, UBS says.
Citi
Buy
downgrade
$690 -> $660
2026-01-21
New
Reason
Citi
Price Target
$690 -> $660
2026-01-21
New
downgrade
Buy
Reason
Citi lowered the firm's price target on Microsoft to $660 from $690 and keeps a Buy rating on the shares. Citi's reseller survey and partner data points were "more mixed" into Microsoft's fiscal Q2 results, the analyst tells investors in a research note. Citi expects an Azure beat in Q2 but reduced estimates for Microsoft's non-Azure businesses on weaker PC forecasts. The stock remains a top mega-cap idea at Citi.
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Rothschild & Co Redburn
Alex Haissl
Neutral
downgrade
$500 -> $450
2026-01-21
New
Reason
Rothschild & Co Redburn
Alex Haissl
Price Target
$500 -> $450
2026-01-21
New
downgrade
Neutral
Reason
Rothschild & Co Redburn analyst Alex Haissl lowered the firm's price target on Microsoft to $450 from $500 and keeps a Neutral rating on the shares.
Mizuho
Outperform
to
NULL
downgrade
$640 -> $620
2026-01-21
New
Reason
Mizuho
Price Target
$640 -> $620
2026-01-21
New
downgrade
Outperform
to
NULL
Reason
Mizuho lowered the firm's price target on Microsoft to $620 from $640 and keeps an Outperform rating on the shares. The firm adjusted targets in large-cap software as part of a Q4 earnings preview. Channel checks were solid overall, with public cloud data points were "generally good" and AI adoption "very strong," the analyst tells investors in a research note. However, Mizuho says some of its checks noted more moderate budget flush activity than usual. In addition, growing investor concerns about AI disruption :continue to decimate many software company multiples," the firm contends. It cites recent multiple compression for the target cuts.
About MSFT
Microsoft Corporation is a technology company that develops and supports software, services, devices, and solutions. Its Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. It comprises Microsoft 365 Commercial products and cloud services; Microsoft 365 Consumer products and cloud services; LinkedIn, and Dynamics products and cloud services. The Intelligent Cloud segment consists of its public, private, and hybrid server products and cloud services. It comprises server products and cloud services, including Azure, and enterprise and partner services, including Enterprise Support Services. Its More Personal Computing segment primarily comprises Windows and Devices, including Windows OEM licensing; Gaming, including Xbox hardware and Xbox content; Search and news advertising, comprising Bing and Copilot, Microsoft News, and Microsoft Edge.
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.
