Microsoft (NASDAQ:MSFT | MSFT Price Prediction) has quietly built a $37 billion AI business, yet the stock has done the opposite of what you would expect. Shares of Microsoft closed at $390.49, down 18.

Microsoft’s Game Pass has around 30 million users, well below the company’s internal projection of 77 million, the Wall Street Journal reported, citing a source.

CEO Satya Nadella on the April earnings call reframed the entire debate over how quickly generative AI can turn into a real profit-and-loss line. The company’s AI business now operates at scale, and the growth rate suggests the ramp is still in its early innings.

Microsoft (MSFT) stock down 20% YTD but analysts see 43% upside. Azure grows 40% YOY with $675 Jefferies target ahead of July 29 earnings.

Microsoft Corp. (MSFT) stock has tumbled recently, but is up from recent lows. Has MSFT become too cheap? After all, analyst price targets are significantly higher. One play is to sell short one-month MSFT put options to set a lower buy-in potentially.

Microsoft and Chipotle both crushed the market over the past decade, but their recent stumbles reveal two very different problems.

This remarkable ability to return capital stems from Microsoft's development into a high-margin giant, primarily fueled by its leadership in cloud

The layoffs are not the catalyst; the setup is that the market is pricing in AI capex pain and AI disruption at the same time. Wolfe’s capex/FCF cut is real, but the stock is already down ~18% YTD, leaving room for a “capex growth slowing + Azure acceleration” earnings surprise on July 29.

Microsoft Corporation (NASDAQ:MSFT) is one of the Best Software Stocks to Buy in 2026. Recently, on July 2, Reuters reported that Microsoft Corporation (NASDAQ:MSFT) is launching a new company called Microsoft Frontier,

If you own Microsoft stock, the options market indicates you are already bearing exposure to a remarkably broad range of potential outcomes over the next year.

Microsoft Corporation remains fundamentally strong, with Q3 2026 revenues up 18% y/y and robust cloud and AI-driven growth. Read more on MSFT stock here.