RBC Reaffirms Microsoft Stock Rating Amid Azure Growth

RBC Capital has reaffirmed its 'Outperform' rating on Microsoft stock with a price target of $640.00, citing the continued momentum in Azure's cloud infrastructure business.

Azure guidance indicates 44-45% constant currency growth, which is a significant increase from the previous period.

The new reporting structure combines commercial and consumer cloud businesses under Microsoft 365 Cloud, providing improved visibility into the core drivers of the business.