"Shares of Microsoft (NASDAQ:MSFT) lost 0.99% over the past five trading sessions after gaining 1.34% the five prior. That brings MSFT's year-to-date gain to 23.03%, including a more than 45% gain since its year -to-date low on April 8. The company's reported strong Q2 earnings on July 30. The Magnificent Seven mainstay reported EPS of $3.65 versus analysts' expectations of $3.35, while quarterly revenue came in at $76.44 billion."
"On Oct. 1, the company announced that it was increasing its Xbox Game Pass subscription by 50%. In its last fiscal year, Microsoft saw more than 8% of revenue derived from its gaming segment, which now boasts 50 million monthly active subscribers and nearly $5 billion in YoY revenue. On June 5, it was reported that the company will be expanding its AI and cloud investments in Switzerland, committing $400 million to expand its data center infrastructure in the European nation."
"Microsoft's decision in May - or 3% of its workforce - signals the tech giant is serious about cost discipline amid economic uncertainty. With analysts eyeing sustained cloud demand, fire 6,000 employees 24/7 Wall St. conducted analysis to explore whether Microsoft can maintain its upward trajectory and drive long-term growth. Why Invest in Microsoft Microsoft navigates challenges, but remains a prime investment due to its AI and cloud dominance."
Microsoft's shares are up 23.03% year-to-date and more than 45% since the April low, despite a recent short pullback. Q2 reported EPS of $3.65 versus $3.35 expected and revenue of $76.44 billion. Xbox Game Pass counts 50 million monthly users and gaming generated nearly $5 billion in year-over-year revenue, with a 50% subscription price increase announced. The company committed $400 million to expand data-center capacity in Switzerland to support customers and broaden AI services. Azure revenue rose 39% in FY25 Q4 driven by AI services. Microsoft cut about 3% of staff to enforce cost discipline while continuing large cloud and AI investments funded by an $80 billion cash reserve.
Read at 24/7 Wall St.
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