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Up 26% Since July 29, Is It Too Late to Buy Microsoft Stock?
The Motley Fool • • business
Key Points:
- Microsoft’s stock surged 26% following its fiscal Q4 2026 earnings report, driven by strong growth in AI and cloud computing segments.
- The company’s AI tool, Microsoft Copilot, reached over 30 million paid seats, highlighting robust adoption of its internal AI products.
- Azure cloud revenue grew 43% year-over-year, with Microsoft maintaining steady capital expenditure guidance, unlike some competitors increasing their spending on data centers.
- The stock’s rapid rise was partly due to its previously low valuation, trading under 20 times forward earnings before the report, which investors viewed as undervalued.
- Microsoft’s current valuation remains reasonable, positioning it favorably within the big tech sector despite recent gains.
