Microsoft Downgraded Amid Cloud Competition Concerns

Microsoft's recent stock price surge has left investors wondering if it's still a good buy. The tech giant's share price jumped by over 20% after recovering from a dip at the beginning of the year.

Despite strong cash flow and free cash flow, the company faces intense competition in the cloud market. AWS and Google Cloud posted larger-scale or faster segment growth, challenging Azure's leadership ambitions.

The analyst behind the downgrade notes that Microsoft trades at the highest multiple out of all four major hyperscalers, which limits its upside potential.