First Eagle Investment Management LLC boosts Microsoft stake

First Eagle Investment Management LLC, managed by Jean Marie Eveillard, recently executed a significant transaction involving Microsoft ((MSFT)). The hedge fund increased its position by 11,748 shares.

Recent Updates on Microsoft stock

Over the past month, Microsoft’s stock has been volatile and generally weaker in the short term, with drawdowns ranging roughly from 6% to 13%, though it remains modestly positive over the last year. Despite this pullback, Wall Street maintains a Strong Buy consensus, with 12‑month average price targets clustering around $600–$630 versus recent prices in the low‑ to mid‑$400s, implying substantial expected upside. Most analysts remain bullish on Microsoft’s long‑term cloud and AI opportunity, citing strong Intelligent Cloud performance (Azure growing around 37–39% year over year), surging commercial bookings (up over 200%), a swelling commercial RPO backlog of about $625 billion—heavily driven by OpenAI and Anthropic commitments—and rapid adoption of Copilot products with millions of paid users. They attribute Azure’s growth “deceleration” mainly to capacity allocation and supply constraints rather than weak demand, while noting sharply higher capex on short‑lived GPU/CPU assets. A minority, such as Stifel’s Brad Reback, have turned more cautious, arguing that Street expectations for 2027 earnings and margins are too high given rising capex, Azure supply issues, and competitive pressures, and see the stock as potentially range‑bound near term even as the broader analyst community continues to view the recent dip as a buying opportunity.

Spark’s Take on MSFT Stock

According to Spark, TipRanks’ AI Analyst, MSFT is a Outperform.

The score is driven primarily by exceptional profitability and balance-sheet strength, supported by bullish AI-led demand and constructive forward guidance. Offsetting these positives are weak current technicals (price below key moving averages with negative MACD) and near-term cash flow/margin pressure tied to elevated AI infrastructure spending; valuation remains premium with a low dividend yield.

To see Spark’s full report on MSFT stock, click here.

More about Microsoft

YTD Price Performance: -14.36%

Average Trading Volume: 28,555,419

Current Market Cap: $3075.6B