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Microsoft stock: This butterfly trade offers bullish exposure and big payoff potential
Microsoft stock has struggled but still has Big Money support. This butterfly options trade has large payoff potential.
Microsoft Corporation (NASDAQ:MSFT) is among the 14 Best Cloud Computing Stocks to Buy Right Now. On February 9, Melius Research downgraded the company’s stock to “Hold” from “Buy” with a price objective of $430.
Overview Microsoft Stock trades near $401 after a 20% pullback, despite strong revenue of $305 billion and net income of $119 billion.Heavy investments in AI an
Therefore, the stock will likely continue falling in the near term, potentially to the key support level at $345, its lowest level in April last year. This target is about 15% below the current level. The stock will then bounce back later this year as investors buy the dip and as the company becomes a bargain.
When one of Wall Street’s most powerful banks calls a stock “the most under-owned megacap,” it’s worth paying attention. Morgan Stanley just made that call on Microsoft today, a company that has fallen into bear market territory after earnings that disappointed Wall Street,
MSFT stock price: Microsoft shares declined in extended trading despite a strong second-quarter earnings beat, as investors prioritized rising AI-related costs over headline figures. The company reported robust cloud revenue and highlighted its expanding AI business,
Microsoft Corp. MSFT is quietly experiencing one of the most dramatic relative downturns in its modern history. The Redmond-based technology giant is now the worst-performing stock among the "Magnificent Seven" in 2026,
On top of that, the consensus price target for Microsoft stock among sell-side analysts is $596 -- implying 48% upside from current levels. To me, this suggests that Wall Street remains bullish on Microsoft's AI road map and is confident in management's ability to allocate capital strategically.
Microsoft's stock saw its biggest daily decline since 2020 on Thursday after investors were dismayed by its cloud computing business not growing enough.
Indeed, Microsoft stock is nearing Apple's pre-split price from 2020. However, the fact that Goldman Sachs and Caterpillar trade at much higher nominal prices could mean that the index's administrators have become less quick to encourage share splitting among Dow components.
Microsoft Corporation's AI agents, custom silicon, and Azure capacity expansion create multiple monetization levers. Learn more about MSFT stock here.
One of the biggest names in tech, Microsoft (NASDAQ:MSFT | MSFT Price Prediction) shares have plunged below $400 despite delivering the largest earnings beat in company history, as investors question whether the company’s massive AI infrastructure spending will ever translate into profitable product adoption.