In 2025, Microsoft shares increased by approximately 16.65%, trailing the S&P 500’s 17.67% and significantly underperforming other tech giants. This may position Microsoft as a strong candidate for profit-taking among investors, especially given its 27% stake in OpenAI and robust Azure cloud offerings, which include multiple AI applications like ChatGPT. Following a peak of $555 in July, MSFT stock recently fell to $487 but found support at the 0.382 Fibonacci Retracement level. The company’s fiscal Q1 2026 results exceeded expectations, with an 18% revenue growth to $77.67 billion, although guidance for Q2 appears conservative at 14%-16%. Institutional ownership remains strong, with major firms increasing stakes, contributing to stock stability. Despite concerns about an AI bubble, Microsoft’s significant AI involvement suggests potential growth. Overall, the stock’s recent technical bounce could indicate the beginning of a rally as we approach 2026.
Source link
Share
Read more