Microsoft, CRH, and an Energy Stock Featured in CNBC's 'Final Trades'
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 11 2025
0mins
Source: Benzinga
Investor Guidance: Amid market volatility, investors are seeking insights from experts, with notable picks including CRH plc and Microsoft Corporation, which has seen a 39% growth in Azure despite a recent 5% decline in stock price.
Recent Trades and Analyst Ratings: Jim Lebenthal highlighted CRH as a final trade, while Joseph Terranova chose Valero Energy Corporation, which received a Strong Buy rating from Raymond James, raising its price target from $170 to $177.
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Analyst Views on MSFT
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
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 393.670
Low
500.00
Averages
631.36
High
678.00
Current: 393.670
Low
500.00
Averages
631.36
High
678.00
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.
Microsoft Faces Challenges and Opportunities in AI Business
- Performance Concerns: Microsoft's fiscal Q2 2026 results revealed strong overall performance; however, modest weaknesses in AI software and cloud services led to a more than 10% drop in stock price in one day, raising investor concerns about future growth.
- Copilot License Sales Growth: As of Q2 2026, Microsoft 365's Copilot licenses reached 15 million, doubling year-over-year but representing only a 3.7% market penetration, indicating limited market uptake that could hinder future revenue growth.
- Azure Revenue Growth Slowdown: Azure's revenue grew 39% year-over-year in Q2, surpassing Wall Street's 37.1% forecast, yet slower than the previous quarter's 40%, suggesting a potential loss of momentum that may affect investor confidence.
- Data Center Capacity Shortage: Microsoft's order backlog surged 110% year-over-year to $625 billion, with 45% from OpenAI, which may limit Azure's expansion and increase investment risks due to reliance on external funding and revenue growth.
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Microsoft Reports Strong Earnings Amid Stock Decline
- Strong Earnings but Stock Drop: Microsoft reported strong results for its fiscal 2026 second quarter, yet its stock fell over 10% due to modest weakness in AI software and cloud services, now down 22% from its record high, reflecting market concerns about future growth.
- Slow Copilot License Sales: As of the fiscal 2026 second quarter, only 15 million Copilot licenses for Microsoft 365 were sold, doubling year-over-year but representing a mere 3.7% market penetration, indicating insufficient market uptake that could hinder future revenue growth.
- Azure Growth Deceleration: Azure achieved a 39% year-over-year growth rate in the second quarter, exceeding Wall Street's expectations, yet slower than the previous quarter's 40%, with a staggering 110% year-over-year increase in order backlog to $625 billion due to data center capacity shortages, highlighting potential growth bottlenecks.
- Attractive Stock Valuation: With a current P/E ratio of 26.5, Microsoft is at its lowest valuation in three years, significantly lower than the Nasdaq-100's 32.8, and analysts project earnings to rise to $19.06 per share in fiscal 2027, resulting in a forward P/E of just 22.4, suggesting a buying opportunity for long-term investors.
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Microsoft and Meta: Long-Term Investment Opportunities in AI Stocks
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- Surge in Copilot Users: Microsoft's AI assistant Copilot saw a 160% increase in user seats last quarter, with daily active users surging tenfold, suggesting that the robust performance of its software business will further drive revenue growth.
- Accelerating Ad Growth at Meta: Meta Platforms achieved a 22% revenue growth in fiscal 2025, with a forward P/E ratio of only 23 times for fiscal 2026, highlighting its potential for returns on advertising investments, especially with new ad opportunities on WhatsApp and Threads.
- Revenue Growth Expectations: Meta forecasts a revenue increase of 26% to 34% in Q1, driven by an 18% rise in ad impressions and a 6% increase in ad prices, indicating success in enhancing ad conversion rates through AI initiatives.
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Analysis of AI Stock Investment Opportunities
- Microsoft Cloud Advantage: Microsoft (MSFT) has a 27% stake in OpenAI due to early investments in AI, with a forward P/E ratio of 25 times for fiscal 2026, while Azure's revenue has grown over 30% for ten consecutive quarters, indicating strong market demand and future growth potential.
- Copilot User Surge: The user seats for Microsoft's AI assistant Copilot surged by 160% last quarter, with daily active users increasing tenfold, suggesting that the robust performance of its software business will further drive overall revenue growth.
- Meta's Advertising Growth Potential: Meta Platforms (META) has a forward P/E of just 23 times for 2026 despite a poor performance last year, with a 22% revenue growth in 2025 and a forecasted revenue increase of 26% to 34% in Q1, indicating a strong recovery in its advertising business.
- WhatsApp Advertising Opportunity: Meta is introducing ads on WhatsApp, which, despite having mostly low-monetizing international users, presents a significant revenue growth opportunity, while its new social platform Threads is still in early development, enhancing the company's long-term growth outlook.
See More
Traditional Companies Emerge in AI Wave
- Data Center Sales Surge: Texas Instruments reported a 70% increase in sales within the data center segment in 2025, indicating a rapid expansion in data center construction that boosts demand for its analog chips, thereby enhancing its competitive position in the AI market.
- Importance of Power Management: Texas Instruments' analog chips convert real-world signals into digital signals and manage power, ensuring reliable operation of data centers, which highlights their critical role in AI infrastructure.
- Hydrogen Solutions Advantage: Bloom Energy offers hydrogen power cells and electrolyzers that can deliver power to data centers faster than traditional electric utilities can build infrastructure, having already signed agreements with American Electric Power and Brookfield Asset Management to expand its sales channels in the AI sector.
- Attractiveness of Renewable Energy: Brookfield Renewable, a globally diversified clean energy company, collaborates with clients like Microsoft and Google to provide electricity, and its 5.2% dividend yield appeals to many investors, indicating potential growth in the AI industry.
See More
Microsoft and American Express: Long-Term Investment Opportunities
- Microsoft Financial Performance: Microsoft boasts a market cap of $3.1 trillion, and despite a recent quarterly revenue growth of 17%, its Azure cloud business's 39% growth fell slightly short of expectations, indicating high market expectations for future growth; however, the long-term growth potential remains strong despite short-term stock price declines.
- Significant Profit Growth: In the last quarter, Microsoft achieved a profit of $38.5 billion, a substantial increase from $24.1 billion a year ago, demonstrating its robust profitability and ongoing investment capacity, which can support future acquisitions and business expansion.
- American Express Stability: American Express generated $72.2 billion in revenue for 2025, reflecting a 10% year-over-year increase, and despite economic challenges, card member spending remains strong, showcasing its stability and growth potential in the credit card market.
- Dividend Growth Outlook: American Express plans to increase its dividend by 16% this year, and with a low payout ratio of around 20%, there is ample room for future dividend increases, further enhancing its appeal as a long-term investment.
See More
Microsoft Faces Challenges and Opportunities in AI Business
- Performance Concerns: Microsoft's fiscal Q2 2026 results revealed strong overall performance; however, modest weaknesses in AI software and cloud services led to a more than 10% drop in stock price in one day, raising investor concerns about future growth.
- Copilot License Sales Growth: As of Q2 2026, Microsoft 365's Copilot licenses reached 15 million, doubling year-over-year but representing only a 3.7% market penetration, indicating limited market uptake that could hinder future revenue growth.
- Azure Revenue Growth Slowdown: Azure's revenue grew 39% year-over-year in Q2, surpassing Wall Street's 37.1% forecast, yet slower than the previous quarter's 40%, suggesting a potential loss of momentum that may affect investor confidence.
- Data Center Capacity Shortage: Microsoft's order backlog surged 110% year-over-year to $625 billion, with 45% from OpenAI, which may limit Azure's expansion and increase investment risks due to reliance on external funding and revenue growth.
See More
Microsoft Reports Strong Earnings Amid Stock Decline
- Strong Earnings but Stock Drop: Microsoft reported strong results for its fiscal 2026 second quarter, yet its stock fell over 10% due to modest weakness in AI software and cloud services, now down 22% from its record high, reflecting market concerns about future growth.
- Slow Copilot License Sales: As of the fiscal 2026 second quarter, only 15 million Copilot licenses for Microsoft 365 were sold, doubling year-over-year but representing a mere 3.7% market penetration, indicating insufficient market uptake that could hinder future revenue growth.
- Azure Growth Deceleration: Azure achieved a 39% year-over-year growth rate in the second quarter, exceeding Wall Street's expectations, yet slower than the previous quarter's 40%, with a staggering 110% year-over-year increase in order backlog to $625 billion due to data center capacity shortages, highlighting potential growth bottlenecks.
- Attractive Stock Valuation: With a current P/E ratio of 26.5, Microsoft is at its lowest valuation in three years, significantly lower than the Nasdaq-100's 32.8, and analysts project earnings to rise to $19.06 per share in fiscal 2027, resulting in a forward P/E of just 22.4, suggesting a buying opportunity for long-term investors.
See More
Microsoft and Meta: Long-Term Investment Opportunities in AI Stocks
- Microsoft's Cloud Advantage: As an early investor in AI, Microsoft holds approximately 27% of OpenAI and has privileged access through its Azure cloud platform, with a forward P/E ratio expected to remain around 25 times by fiscal 2026, indicating strong long-term growth potential.
- Surge in Copilot Users: Microsoft's AI assistant Copilot saw a 160% increase in user seats last quarter, with daily active users surging tenfold, suggesting that the robust performance of its software business will further drive revenue growth.
- Accelerating Ad Growth at Meta: Meta Platforms achieved a 22% revenue growth in fiscal 2025, with a forward P/E ratio of only 23 times for fiscal 2026, highlighting its potential for returns on advertising investments, especially with new ad opportunities on WhatsApp and Threads.
- Revenue Growth Expectations: Meta forecasts a revenue increase of 26% to 34% in Q1, driven by an 18% rise in ad impressions and a 6% increase in ad prices, indicating success in enhancing ad conversion rates through AI initiatives.
See More
Analysis of AI Stock Investment Opportunities
- Microsoft Cloud Advantage: Microsoft (MSFT) has a 27% stake in OpenAI due to early investments in AI, with a forward P/E ratio of 25 times for fiscal 2026, while Azure's revenue has grown over 30% for ten consecutive quarters, indicating strong market demand and future growth potential.
- Copilot User Surge: The user seats for Microsoft's AI assistant Copilot surged by 160% last quarter, with daily active users increasing tenfold, suggesting that the robust performance of its software business will further drive overall revenue growth.
- Meta's Advertising Growth Potential: Meta Platforms (META) has a forward P/E of just 23 times for 2026 despite a poor performance last year, with a 22% revenue growth in 2025 and a forecasted revenue increase of 26% to 34% in Q1, indicating a strong recovery in its advertising business.
- WhatsApp Advertising Opportunity: Meta is introducing ads on WhatsApp, which, despite having mostly low-monetizing international users, presents a significant revenue growth opportunity, while its new social platform Threads is still in early development, enhancing the company's long-term growth outlook.
See More
Traditional Companies Emerge in AI Wave
- Data Center Sales Surge: Texas Instruments reported a 70% increase in sales within the data center segment in 2025, indicating a rapid expansion in data center construction that boosts demand for its analog chips, thereby enhancing its competitive position in the AI market.
- Importance of Power Management: Texas Instruments' analog chips convert real-world signals into digital signals and manage power, ensuring reliable operation of data centers, which highlights their critical role in AI infrastructure.
- Hydrogen Solutions Advantage: Bloom Energy offers hydrogen power cells and electrolyzers that can deliver power to data centers faster than traditional electric utilities can build infrastructure, having already signed agreements with American Electric Power and Brookfield Asset Management to expand its sales channels in the AI sector.
- Attractiveness of Renewable Energy: Brookfield Renewable, a globally diversified clean energy company, collaborates with clients like Microsoft and Google to provide electricity, and its 5.2% dividend yield appeals to many investors, indicating potential growth in the AI industry.
See More
Microsoft and American Express: Long-Term Investment Opportunities
- Microsoft Financial Performance: Microsoft boasts a market cap of $3.1 trillion, and despite a recent quarterly revenue growth of 17%, its Azure cloud business's 39% growth fell slightly short of expectations, indicating high market expectations for future growth; however, the long-term growth potential remains strong despite short-term stock price declines.
- Significant Profit Growth: In the last quarter, Microsoft achieved a profit of $38.5 billion, a substantial increase from $24.1 billion a year ago, demonstrating its robust profitability and ongoing investment capacity, which can support future acquisitions and business expansion.
- American Express Stability: American Express generated $72.2 billion in revenue for 2025, reflecting a 10% year-over-year increase, and despite economic challenges, card member spending remains strong, showcasing its stability and growth potential in the credit card market.
- Dividend Growth Outlook: American Express plans to increase its dividend by 16% this year, and with a low payout ratio of around 20%, there is ample room for future dividend increases, further enhancing its appeal as a long-term investment.
See More
