Microsoft Stock Sell-Off Presents Buying Opportunity
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 27 2026
0mins
Source: Fool
- Decade-Long Gains: Microsoft's stock has surged approximately 680% over the past decade, transforming a $10,000 investment into $78,010, significantly outperforming the S&P 500's 260% return, underscoring its long-term investment appeal.
- Valuation Shift: Recently, Microsoft has lost its premium status and now trades at a market-matching valuation, reflecting a decrease in market confidence regarding its future growth, necessitating investor scrutiny of its true value.
- Cloud Computing Growth: Microsoft's Azure cloud segment achieved a remarkable 39% year-over-year revenue growth in the latest quarter, with a backlog of $625 billion, indicating its strong competitive position and high-margin business model in the generative AI space.
- Optimistic Future Outlook: Wall Street analysts project revenue growth of 16% for this fiscal year and 15% for the next, highlighting Microsoft's critical role in AI infrastructure development, making the current stock sell-off a compelling buying opportunity for investors.
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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: 416.030
Low
500.00
Averages
631.36
High
678.00
Current: 416.030
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.
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- Dependency on Future Growth: Analysts project a 23% earnings growth for the S&P 500 in 2026, yet the tech sector's future growth heavily relies on the performance of other tech firms, where any failure could undermine revenue expectations, adding uncertainty to the market outlook.
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