--- title: "Microsoft Short Interest Hits Highest Level Since 2015 as Bears Dig in Ahead of Earnings" type: "News" locale: "en" url: "https://longbridge.com/en/news/294231613.md" description: "Microsoft's short interest has reached its highest level since May 2015, with approximately 92 million shares sold short ahead of its upcoming earnings report. Despite a strong track record of consecutive revenue and EPS beats, bearish sentiment persists due to fears of an AI spending arms race triggered by Alphabet's increased capex outlook. While the stock is down over 18% for the year, some analysts maintain bullish targets, citing Azure growth and AI opportunities." datetime: "2026-07-29T15:34:55.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294231613.md) - [en](https://longbridge.com/en/news/294231613.md) - [zh-HK](https://longbridge.com/zh-HK/news/294231613.md) --- # Microsoft Short Interest Hits Highest Level Since 2015 as Bears Dig in Ahead of Earnings Roughly 92 million **Microsoft Corp.** (NASDAQ:MSFT) shares are currently sold short — 1.27% of the company’s public float — the highest percentage since May 2015 and the largest jump in short interest among the Magnificent Seven, according to **S3 Partners** data cited by CNBC. - **MSFT stock is moving ahead of earnings. See the chart and price action here.**  S3 also flagged that almost no short covering has occurred heading into the report, meaning bearish traders are staying put rather than trimming positions before Wednesday’s after-the-bell release. That skepticism arrives despite a strong track record: Microsoft has posted 13 consecutive quarters of revenue beats and 15 straight EPS beats. Wall Street is looking for $87.61 billion in revenue and $4.23 in EPS, up from $76.44 billion and $3.65 a year earlier, according to data from Benzinga Pro.  The stock has struggled regardless, off more than 18% for the year overall and trailing the S&P 500 by roughly 25 percentage points.  **Read Also: Tesla Shorts Are Up $9.1 Billion This Year — And SpaceX Isn't Far Behind** ## **Experts Weigh In** Bearish sentiment picked up steam after **Alphabet Inc.** (NASDAQ:GOOGL) (NASDAQ:GOOG) lifted its 2026 capex outlook and posted faster cloud growth, sending its stock down nearly 8% and pulling Microsoft down 3% on fears of a broader spending arms race.  **Evercore** **ISI’s Mark Mahaney** wrote in a note, “Alphabet’s capex boost increases the odds of similar behavior” from **Amazon.com Inc**. (NASDAQ:AMZN) and Microsoft, according to CNBC.  Microsoft itself set the stage for that worry in April, when it guided to roughly $190 billion in capital expenditures and finance leases for the year — including about $25 billion tied to pricier components as AI chip demand squeezed memory supply.  Not everyone is convinced the AI bet is souring. **Citizens’ Patrick Walravens** argues CEO **Satya Nadella**‘s “AI sovereignty” push and steady leadership justify a premium valuation, citing a total addressable market he sizes at $5.1 trillion by 2030. Citizens has the stock as Market Outperform with a $550 target. **Guggenheim Partners’ John DiFucci** sees Azure growth of 39% to 40% year-over-year, cushioning softer Windows results. Guggenheim has the stock as Buy with a $586 target. The tension between that bull case and the market’s record short bet sets up Wednesday’s report from Microsoft as one of the most closely watched of earnings season. **MSFT Stock Price Activity:** Microsoft shares were up 0.33% at $394.67 at the time of publication on Wednesday, according to Benzinga Pro. **Read Also: Is the AI Chip Trade Actually Cracking? $1 Trillion Wiped Out in Korea — And It's Spreading** _Photo: HJBC / Shutterstock_ ### Related Stocks - [MSFT.US](https://longbridge.com/en/quote/MSFT.US.md) - [MSFU.US](https://longbridge.com/en/quote/MSFU.US.md) - [MSFO.US](https://longbridge.com/en/quote/MSFO.US.md) - [MSFY.US](https://longbridge.com/en/quote/MSFY.US.md) - [MSFD.US](https://longbridge.com/en/quote/MSFD.US.md) - [MSFL.US](https://longbridge.com/en/quote/MSFL.US.md) - [MSFX.US](https://longbridge.com/en/quote/MSFX.US.md) - [MSFW.US](https://longbridge.com/en/quote/MSFW.US.md) - [MAGX.US](https://longbridge.com/en/quote/MAGX.US.md) - [.SPX.US](https://longbridge.com/en/quote/.SPX.US.md) - [TSLA.US](https://longbridge.com/en/quote/TSLA.US.md) - [GOOGL.US](https://longbridge.com/en/quote/GOOGL.US.md) - [GOOG.US](https://longbridge.com/en/quote/GOOG.US.md) - [EVR.US](https://longbridge.com/en/quote/EVR.US.md) - [AMZN.US](https://longbridge.com/en/quote/AMZN.US.md) - [CFG.US](https://longbridge.com/en/quote/CFG.US.md) - [CFG-I.US](https://longbridge.com/en/quote/CFG-I.US.md) - [CFG-E.US](https://longbridge.com/en/quote/CFG-E.US.md) - [CFG-H.US](https://longbridge.com/en/quote/CFG-H.US.md) ## Related News & Research - [Microsoft Becomes Top Analyst Pick as Q4 Results ‘Change the Narrative’](https://longbridge.com/en/news/294388921.md) - [Microsoft Just Made Cybersecurity AI More Accessible](https://longbridge.com/en/news/294098034.md) - [Microsoft Expects FY2027 Capex To Grow Year-Over-Year](https://longbridge.com/en/news/294269889.md) - [Former Microsoft President Jeff Raikes Says AI Could Create a 'Talent Debt' by Replacing Entry-Level Work](https://longbridge.com/en/news/293906551.md) - [Moonshot AI’s Kimi K3 reaches enterprise users through Fireworks on Microsoft Foundry](https://longbridge.com/en/news/294339417.md)