"Microsoft's stock fell 23% in Q1 2026, its worst quarter since the Great Recession, and trades at a forward P/E near 26x versus a five-year median around 34x."
"Management guided 37%-38% constant-currency growth for Azure, with demand exceeding supply, which is critical for the AI demand narrative."
"Microsoft spent $29.9 billion on PP&E last quarter, up 89% year over year, and investors seek reassurance that these returns are real."
"Nadella disclosed 15 million paid M365 Copilot seats, up over 160% year over year, indicating a strong trajectory despite concerns about market penetration."
Michael Burry recently invested in Microsoft, highlighting a significant moment as the company prepares to report Q3 FY26 results. Microsoft experienced a 23% decline in Q1 2026, its worst quarter since the Great Recession, and trades below its all-time high. Despite this, Microsoft reported strong earnings with a 16.7% revenue increase and significant growth in Azure. Key factors to watch include Azure's growth rate, capital expenditures, and the monetization of Copilot, which are crucial for validating Burry's investment thesis.
Read at 24/7 Wall St.
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