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Focused Investors Llc, managed by Bruce Gordon Veaco, recently executed a significant transaction involving Microsoft ((MSFT)). The hedge fund reduced its position by 9,800 shares.
Recent Updates on Microsoft stock
Over the past month, Microsoft (MSFT) shares have pulled back about 5–6% and are down roughly 1–2% over the last week, even though they remain up about 7–8% over the past year. Despite this weakness and a roughly 15% decline since the last quarterly report, Wall Street maintains a Strong Buy consensus with a 12‑month average price target near $630, implying substantial upside from the recent $455–$460 trading range. Analyst Derrick Wood reiterated his Buy rating on January 20, 2026, with a $625 target, expecting around 37% constant‑currency Azure growth with possible upside and seeing temporary capacity constraints as the main near‑term headwind. Surveys show Microsoft as the leading destination for new AI and cloud spending—76% of respondents plan to allocate AI budgets to Microsoft, and it now ranks #1 for overall cloud spend intentions, ahead of AWS and Google Cloud. Wood also points to aggressive data‑center leasing and a major $250 billion OpenAI‑related contract that should sharply boost remaining performance obligations, reinforcing a constructive medium‑term outlook for Microsoft’s AI and cloud‑driven growth, even if the stock may remain range‑bound until Azure growth re‑accelerates.
Spark’s Take on MSFT Stock
According to Spark, TipRanks’ AI Analyst, MSFT is a Outperform.
Strong fundamentals drive the score, led by high profitability, low leverage, and solid cash generation. The earnings call supports the outlook with robust AI and cloud growth guidance, though elevated CapEx and margin pressure temper it. Technicals are mixed and valuation is relatively expensive with a low yield, limiting upside from price/valuation factors.
To see Spark’s full report on MSFT stock, click here.
More about Microsoft
YTD Price Performance: -0.63%
Average Trading Volume: 25,356,363
Current Market Cap: $3495.3B