Fubotv earnings beat by $0.10, revenue topped estimates
On Wednesday, BMO Capital Markets revised its price target for Microsoft Corporation (NASDAQ:MSFT) stock, reducing it to $470 from the previous $490, while maintaining an Outperform rating on the tech giant. The adjustment comes after BMO Capital hosted discussions with two cloud experts to gain insights into the company’s cloud services arm, Azure. According to InvestingPro data, Microsoft, with its impressive $2.87 trillion market cap, currently trades near its Fair Value, suggesting BMO’s target offers significant upside potential.
Keith Bachman, an analyst at BMO Capital, noted a slowdown in Azure’s legacy cloud business, excluding artificial intelligence workloads. As a result of these findings, the firm has lowered its growth estimates for Azure for the upcoming quarters and the fiscal year 2026. Despite this revision, Bachman affirmed the Outperform rating for Microsoft stock, signaling confidence in the company’s performance prospects. This confidence appears well-founded, as InvestingPro data shows Microsoft maintaining strong revenue growth of 15% and a robust gross profit margin of 69.4%.
The report highlighted a potential catalyst for Microsoft shares, which could be the anticipated lower capital expenditure intensity in fiscal year 2026. This factor is expected to positively influence the stock, according to Bachman’s analysis.
The price target reduction reflects a more cautious outlook on Azure’s near-term growth trajectory, yet BMO Capital’s overall stance remains positive regarding Microsoft’s market position and future developments.
Microsoft’s stock price movement will continue to be closely monitored by investors as the company navigates the dynamic cloud computing landscape and adjusts its strategies to maintain its competitive edge. The new price target of $470 set by BMO Capital represents their adjusted valuation of the company based on the latest available information and market trends.
In other recent news, OpenAI has made several strategic moves, including the appointment of four new advisors to its Nonprofit Commission. This initiative aims to enhance OpenAI’s philanthropic efforts in areas such as health, education, and public service. The advisors will provide insights and community feedback to guide the nonprofit’s direction, amid ongoing legal disputes with co-founder Elon Musk. In addition, OpenAI has introduced a new library feature for ChatGPT, allowing users to store and organize their image creations. This update enhances user experience by providing a centralized location for creative outputs.
Furthermore, OpenAI has updated its Preparedness Framework to address risks associated with advanced AI capabilities. The framework introduces more stringent requirements and clearer guidance on risk mitigation, focusing on high-risk capabilities. Meanwhile, Bank of America Securities has adjusted its financial outlook for Microsoft, lowering the price target to $480 but maintaining a Buy rating. This revision follows discussions with key partners, indicating stable deal activity for Microsoft in the third fiscal quarter of 2024.
Lastly, the Magnificent Seven stocks, including Microsoft, showed an upward trend in premarket trading, buoyed by the potential pause in auto tariffs hinted at by President Trump. This development offers some market relief, despite ongoing trade tensions involving semiconductors and pharmaceuticals.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.