Microsoft (NASDAQ:MSFT) Trading Down 3.2% – What’s Next?

Shares of Microsoft Corporation (NASDAQ:MSFT) fell 3.2% on Monday . The company traded as low as $383.10 and last traded at $384.47. 42,959,620 shares were traded during mid-day trading, an increase of 14% from the average session volume of 37,733,320 shares. The stock had previously closed at $397.23.

More Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: OpenAI’s updated spending plan still benefits Microsoft because it sustains strong demand for cloud AI infrastructure and licensing, supporting Azure revenue tailwinds. OpenAI Spending Plan Positive for Microsoft (TipRanks)
• Positive Sentiment: Microsoft is winning ecosystem deals and marketplace distribution (CrowdStrike on Microsoft Marketplace; third‑party AI apps now available), which helps monetize Azure and enterprise software beyond raw infrastructure. Microsoft Positions for Long-Term AI and Enterprise Growth (InsiderMonkey)
• Positive Sentiment: Hardware progress: analyst notes that Microsoft’s Maia 200 accelerator narrows performance gaps vs. rivals, supporting Azure competitiveness for AI workloads. That underpins longer‑term cloud share and pricing power. Maia 200 Closes Gap With AI Competitors (Benzinga)
• Positive Sentiment: Insider buying and technical signals: a director bought shares and MarketBeat highlights oversold indicators — a potential near‑term buyer base and contrarian signal. Insider Buy & Oversold Signals (MarketBeat)
• Neutral Sentiment: Citi and other firms still find value in Microsoft—some analysts recommend buys while others trim ratings; mixed sell‑side views add volatility but not a clear directional catalyst. Citi Analysts on Microsoft (Barchart)
• Negative Sentiment: Leadership change in gaming: Phil Spencer’s retirement and Asha Sharma’s promotion triggered investor unease about near-term gaming revenue and strategic shifts toward AI-first gaming initiatives. That news pressured the stock. Gaming Reinvents Itself; Sharma Named CEO (PYMNTS)
• Negative Sentiment: CapEx and margin anxiety: reports flag a large surge in hyperscaler capex (and a 66% jump in Microsoft’s capex in recent quarter), raising questions about timing of returns from data‑center and AI infrastructure builds. CapEx Pressure From AI Spending (Zacks)
• Negative Sentiment: Analyst downgrades, sector rotation and headline risk: some outlets and fund managers have trimmed Microsoft exposure amid a broader pullback in mega‑cap tech, and critical commentary (including high‑profile skeptics) fuels short-term selling. Palantir Upgraded, Microsoft Downgraded (InvestorPlace)

Analysts Set New Price Targets

Several research firms have commented on MSFT. Jefferies Financial Group restated a “buy” rating on shares of Microsoft in a research note on Thursday, January 22nd. The Goldman Sachs Group reissued a “buy” rating on shares of Microsoft in a research note on Thursday, February 12th. Rothschild & Co Redburn set a $450.00 price target on Microsoft in a report on Wednesday, January 21st. Robert W. Baird set a $540.00 price objective on Microsoft and gave the company an “outperform” rating in a research note on Thursday, January 29th. Finally, TD Cowen reissued a “buy” rating on shares of Microsoft in a research report on Thursday, January 29th. Two research analysts have rated the stock with a Strong Buy rating, thirty-nine have assigned a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $591.95.

Microsoft Stock Down 3.2%

The firm has a 50-day moving average price of $452.13 and a two-hundred day moving average price of $487.79. The firm has a market cap of $2.85 trillion, a price-to-earnings ratio of 24.04, a price-to-earnings-growth ratio of 1.55 and a beta of 1.08. The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.38 and a current ratio of 1.39.

Microsoft (NASDAQ:MSFT) last announced its quarterly earnings results on Wednesday, January 28th. The software giant reported $4.14 EPS for the quarter, beating the consensus estimate of $3.86 by $0.28. The company had revenue of $81.27 billion for the quarter, compared to analyst estimates of $80.28 billion. Microsoft had a net margin of 39.04% and a return on equity of 32.34%. The firm’s revenue was up 16.7% on a year-over-year basis. During the same period in the prior year, the firm posted $3.23 earnings per share. On average, sell-side analysts forecast that Microsoft Corporation will post 13.08 earnings per share for the current year.

Microsoft Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, March 12th. Investors of record on Thursday, February 19th will be given a $0.91 dividend. The ex-dividend date of this dividend is Thursday, February 19th. This represents a $3.64 dividend on an annualized basis and a yield of 0.9%. Microsoft’s payout ratio is 22.76%.

Insider Buying and Selling at Microsoft

In other news, Director John W. Stanton acquired 5,000 shares of the company’s stock in a transaction on Wednesday, February 18th. The shares were bought at an average price of $397.35 per share, with a total value of $1,986,750.00. Following the completion of the acquisition, the director owned 83,905 shares in the company, valued at $33,339,651.75. This trade represents a 6.34% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Judson Althoff sold 12,750 shares of the business’s stock in a transaction dated Tuesday, December 2nd. The shares were sold at an average price of $491.52, for a total value of $6,266,880.00. Following the completion of the sale, the chief executive officer directly owned 129,349 shares of the company’s stock, valued at $63,577,620.48. The trade was a 8.97% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.03% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Microsoft

Large investors have recently modified their holdings of the company. GuidedMoney LLC acquired a new position in shares of Microsoft in the 4th quarter valued at $1,314,000. Phillip James Consulting Co. acquired a new stake in Microsoft during the 4th quarter worth $488,000. Walser Wealth Management Company A Ltd Liability Co purchased a new position in Microsoft during the 4th quarter worth $2,405,000. Blue Capital Inc. increased its stake in Microsoft by 2.4% in the fourth quarter. Blue Capital Inc. now owns 2,014 shares of the software giant’s stock valued at $974,000 after purchasing an additional 47 shares during the period. Finally, MV Capital Management Inc. acquired a new position in Microsoft in the fourth quarter valued at $13,989,000. 71.13% of the stock is owned by institutional investors and hedge funds.

Microsoft Company Profile

Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.

Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).