--- title: "'It's Finally Happening,' Says Top Investor on Microsoft Stock" type: "News" locale: "en" url: "https://longbridge.com/en/news/294621890.md" description: "Microsoft reported strong Q4 earnings, beating expectations with $90B revenue and $4.74 EPS, driven by 43% Azure growth and over 30M Copilot seats. This performance reversed recent investor concerns about capital expenditures, prompting a historic post-earnings rally. Top investor JR Research highlights Microsoft's inflection point, citing robust AI monetization and cybersecurity strength, assigning a Strong Buy rating. Wall Street consensus also rates MSFT as a Strong Buy, with an average price target of $561.63 implying 21% upside." datetime: "2026-08-03T00:49:37.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294621890.md) - [en](https://longbridge.com/en/news/294621890.md) - [zh-HK](https://longbridge.com/zh-HK/news/294621890.md) --- # 'It's Finally Happening,' Says Top Investor on Microsoft Stock **Microsoft (NASDAQ:MSFT)** investors finally have a reason to celebrate. Last week, the software giant delivered one of the strongest post-earnings rallies in its history after reporting results that left Wall Street with little to criticize. ### Claim 55% Off TipRanks - Unlock powerful investing tools with TipRanks Premium to make smarter, more confident investment decisions - Subscribe to TipRanks Smart Investor Newsletter, and discover new investing opportunities with data-backed stock picks In its fiscal fourth quarter, Microsoft earned an adjusted $4.74 per share on $90 billion in revenue, beating Wall Street's expectations by $0.49 per share and about $2.3 billion, respectively. Digging deeper into the report, the Intelligent Cloud segment generated $39.3 billion in revenue, exceeding analysts' estimates by about $1.1 billion. Within that business, Azure and other cloud services revenue climbed 43%, its fastest pace since 2022, while management said growth should accelerate to about 45% during the current quarter. Microsoft also disclosed that paid Microsoft 365 Copilot seats had climbed to more than 30 million, reinforcing confidence that its multibillion-dollar AI investments are beginning to generate meaningful returns. At the same time, management reassured investors that aggressive spending on data centers remains compatible with healthy profitability and free cash flow. The rally marked a complete reversal from the sentiment that had weighed on Microsoft for much of the year. Although Microsoft's underlying business continued delivering solid financial results, many investors questioned whether its record capital expenditures would generate attractive returns. Others worried that rival AI models could weaken Microsoft's competitive position or that cloud growth would moderate after several years of expansion. Those concerns, along with a broad valuation reset among software companies, weighed on sentiment for months. Despite last week's surge, Microsoft shares still sit about 3.5% below where they started the year. According to JR Research, a 5-star investor who ranks among the top 3% of stock experts on TipRanks, the company has finally reached the inflection point bullish investors had been waiting for. "The redemption for Microsoft investors has finally arrived," JR wrote, adding that the latest results "really corroborate Microsoft's monetization thesis." The investor argues that Azure's accelerating growth demonstrates Microsoft remains in a class of its own. Rather than relying on a single product, the company benefits from an ecosystem that includes Windows, Microsoft 365, Azure, developer tools, enterprise software, and one of the world's largest cybersecurity businesses. "The King of SaaS has returned to announce its much-anticipated arrival," JR wrote, asserting that Microsoft is once again competing successfully with its hyperscale peers. The investor also believes Microsoft's security business deserves much greater recognition from investors. While Azure often receives most of the credit, he makes the case that cybersecurity has become an essential advantage as enterprises expand their AI deployments. "Microsoft is also the 800-pound gorilla in the cybersecurity arena," he wrote, arguing that this business remains "well understated" despite its growing importance. Looking ahead, JR sees several reasons to remain optimistic. Azure has now surpassed a $100 billion annual revenue run rate, Microsoft's commercial remaining performance obligation reached $678 billion excluding OpenAI, and Copilot adoption continues climbing from a relatively small portion of the company's addressable customer base. The investor also believes Microsoft's highly profitable software franchises provide much greater financial flexibility than many competitors, allowing management to continue investing aggressively while maintaining positive free cash flow. "I think things are finally falling into place for Microsoft," JR enthusiastically said, adding that the company can now "finally monetize its tech stack robustly." That optimism extends well beyond last week's rally. "I view the recent recovery in Microsoft as just getting started," JR wrote, concluding that the company's strengthening cloud business, expanding AI monetization, and disciplined capital allocation leave meaningful upside ahead. Accordingly, JR assigns MSFT shares a Strong Buy rating. (To watch JR Research's track record, click here) Does Wall Street agree that Microsoft's rally still has room to run? The answer appears to be yes. Microsoft earns a Strong Buy consensus rating based on 35 recent analyst opinions, with 34 recommending Buy and only one suggesting Hold. The average 12-month price target of $561.63 implies about 21% upside from current levels. 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