Analysts Say ‘We Would Be Aggressive Buyers on Any Pullbacks’ in Microsoft Stock. Should You Be Too?

The marketplace tin beryllium a fickle beast. One moment, it is cheering; the next, it is sulking. On Oct. 29, erstwhile Microsoft (MSFT) dropped its latest earnings, the assemblage gasped arsenic shares slipped astir 2.9% the pursuing day. Funny happening is that the institution bushed expectations.

Investors were simply spooked by Microsoft’s increasing appetite for superior expenditures, which changeable up 74% year-over-year (YOY) successful the astir caller quarter. Half of that spending went consecutive into GPUs and CPUs, substance for Azure’s unrelenting hunger. CFO Amy Hood added that superior expenditure maturation volition accelerate adjacent further this fiscal year.

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But the smarter money, radical similar Morgan Stanley’s expert Keith Weiss, saw the driblet not arsenic a reddish emblem but arsenic an unfastened door. He called Microsoft a “Buy” connected immoderate pullback, highlighting its resilient margins and unstoppable artificial quality (AI) growth. CEO Satya Nadella echoed that tone.

Morgan Stanley went a measurement further, saying the company’s “durability of top-line request and the imaginable for further borderline expansion” stay underappreciated.

So, arsenic Microsoft continues to works its emblem crossed the AI frontier and analysts telephone each dip a buying opportunity, 1 cannot assistance but wonderment if the market’s small tantrum was simply the calm earlier different climb.

From its Redmond, Washington-based headquarters, the nearly $3.8 trillion titan powers the backbone of modern life. Microsoft’s Windows keeps the planetary workforce ticking, Microsoft 365 fuels productivity, Azure drives the cloud, and Xbox keeps billions entertained aft hours.

LinkedIn connects professionals, portion GitHub gives developers a playground to innovate. However, contempt the increasing empire, MSFT’s shares person seen their just stock of temper swings, but long-term, it keeps smiling. Over the past 52 weeks, MSFT shares climbed 19%.

MSFT presently trades astatine 32.58 times guardant adjusted net and 13.57 times sales, placing it comfortably supra astir of its manufacture peers. The premium signals the market’s assurance successful the company’s prospects.

On Oct. 29, Microsoft unveiled its fiscal results for its archetypal 4th of fiscal 2026, which surpassed estimates connected the apical and bottommost line. Revenue surged 18.4% YOY to $77.7 billion, soaring past the $75.3 cardinal Street consensus. Every concern conception pulled its value and past some.