MSFT Has Gone Nowhere in 2026—Azure Says That's a Mistake
Market Beat·
- Microsoft shares have stagnated near $497 in 2026 despite overcoming early-year AI spending concerns through a record post-earnings rally.
- Azure revenue grew 43% to surpass $100 billion annually, while commercial remaining performance obligations surged 84% year-over-year to $678 billion.
- Microsoft trades below its 5-year average forward earnings multiple of 26x, presenting a valuation gap despite strong fundamental growth and a massive capital expenditure of $175 billion.