I'm LongbridgeAI. Here is the key information I extractedTradingKey - Microsoft (NASDAQ: MSFT) fell 2.20% to $533.16 on Tuesday, November 10, after a sudden midday drop of as much as 3% that CNBC tied to Anthropic's new workplace tools for its Claude AI assistant. Overnight trading was slightly higher at $535.00.
On the same day, Microsoft overtook Nvidia as the world's second most valuable company for the first time since June 2025, according to Reuters, because Nvidia fell 5.47%. MSFT is now about 4.6% below its record high of $559.15 from November 4.
Anthropic Moves Into Office Territory
Anthropic launched Claude Sheets, a spreadsheet tool, along with Claude Whiteboards and Claude Data, and said a meetings tool is coming soon. The Register described the launch as a first step into office software, a market Microsoft 365 and Google have long led.
Anthropic is also one of Microsoft's big partners. In November 2025, it committed to buy $30 billion of Azure computing capacity, and Microsoft agreed to invest up to $5 billion. Anthropic's amended IPO filing now lists Microsoft as a buyer of about $1 billion of non-voting Class N shares at the IPO price, set at $70 to $78. That makes Anthropic a large Azure customer and, from this week, a rival in office software.
Inflation and Nvidia Also Weighed on Tech
October CPI rose 0.4% in the month, and core prices, which leave out food and energy, rose 0.3%, above forecasts. Hotter inflation can keep interest rates higher for longer, which tends to weigh on highly valued tech stocks, and the Nasdaq lost 0.7% while the S&P 500 fell 0.4%. Nvidia fell after its board hired outside counsel for an independent investigation involving CEO Jensen Huang, and its market value briefly slipped below $4 trillion.
Microsoft took the No. 2 spot on a day it fell 2.2%, which shows how much weaker Nvidia's session was. Separately, CFO Amy Hood sold 7,305 shares on November 9 for about $3.98 million under a trading plan adopted in June, so the sale looks routine.
The Cloud Business Is Still Strong
Behind the pullback, the business looks the same as in late October. Fiscal Q1 revenue rose 19% to $92.3 billion, Azure grew 48% to $33.2 billion, and commercial remaining performance obligation, contracted revenue not yet booked, reached $677 billion, up 73%. Free cash flow, the cash left after capital spending, was $18.6 billion.
For Q2, Microsoft guided revenue to $96.0 billion to $97.1 billion and Azure growth to 49% to 50%, with capex above $50 billion. UBS has a $700 target and TD Cowen $650, while RBC reiterated its $640 target ahead of Microsoft's Ignite conference, which runs from November 17 to 20 in San Francisco.
In my view, Azure growth still matters more for the stock than Anthropic's new tools, but Ignite next week needs a clear Copilot answer.
Microsoft Technical Analysis: Rising Channel Holds Above $525.19 Support
On the daily chart, the rally stalled in the $550 to $559.21 resistance zone, where MSFT set its record high on November 4, and sellers have since pulled the stock back. Even so, the bigger picture remains positive, because the stock still trades inside a rising channel, two parallel lines that have guided prices higher since August, with steady higher lows.
Microsoft Price Chart - Source: Tradingview
RSI, a momentum gauge that runs from 0 to 100, sits near 52, a neutral reading. The MACD, a trend-following momentum indicator, is flat near its signal line, so momentum has cooled but has not turned bearish.
The first support is $525.19. A daily close below it could send MSFT toward the $504.92 zone, near the bottom of the channel. For buyers, a close above $559.21 would confirm a breakout to new highs and could open $572.41, then $594.96.
I'm cautiously bullish while MSFT holds above $525.19, with $559.21 as the key breakout level.
Key Levels
- Last close: $533.16, down 2.20% on Tuesday, November 10 (overnight: $535.00)
- Support: $525.19, $504.92
- Resistance: $559.21, $572.41, $594.96
- RSI: 52.30, a neutral reading
- Bullish trigger: Daily close above $559.21
- Bearish trigger: Daily close below $525.19
FAQs
Why did Microsoft stock fall on Tuesday?
Microsoft fell 2.20% after Anthropic launched Claude workplace tools, including a spreadsheet, that compete with Microsoft 365, while hotter-than-expected inflation data weighed on tech stocks.
What is the Microsoft stock forecast now?
The bias is cautiously bullish while MSFT holds above $525.19 on the daily chart. A close above $559.21 could open $572.41 and $594.96, while a close below $525.19 could send it toward $504.92.
Bottom Line
Microsoft now faces Anthropic as both a major Azure customer and a rival in office software, but its cloud business is still growing fast. I expect the rising channel to hold while MSFT stays above $525.19, and only a daily close below it would shift the focus to $504.92.
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