Microsoft Stock Is Now in a Correction -- Is This a Buying Opportunity?

Motley Fool
2025.01.30 16:46
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Microsoft's stock has entered a correction, down over 6% following its Q2 2025 earnings report, despite beating revenue and earnings expectations. The decline is attributed to weak guidance for Q1 revenue, forecasted at $68.2 billion, which is below analyst expectations. Concerns over AI spending strategies amid competition and a slowdown in Azure growth have also impacted investor sentiment. However, Microsoft's AI revenue has surged 175% year-over-year, suggesting potential for recovery. The stock trades at 30.5 times forward earnings, indicating a reasonable valuation for investors considering the current dip.