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Microsoft Stock Slumps Amid 'Big-Tech De-Risking' Trend

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MSFT
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Microsoft's stock has been hit by a 'big-tech de-risking' trend that has seen it drop to $491.65, down 16% from the analyst consensus target of $572.92.

The company's Azure cloud business has been growing strongly, with a 41% increase in revenue and a guide for 45% constant-currency growth in fiscal Q1 2027.

Microsoft has also made significant investments in AI, including its restructured partnership with OpenAI, which saw losses balloon to $3.1 billion in Q1.

Despite this, the company's commercial remaining performance obligations have increased by 84% year-over-year, reaching $678 billion.

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