Business
Microsoft Stock Rises Over 3% as Investors Rotate Into AI Software Names Ahead of July 29 Earnings Day
Shares of Microsoft climbed 3.25% on Wednesday, trading at $397.46 as of 12:01 p.m. EDT, up $12.52 on the day, as investors rotated out of AI-linked chip stocks and back into software names, extending a recent rebound for a stock that has struggled for much of 2026.
Wednesday’s gains come as Microsoft continues navigating what has been a difficult year overall. The stock remains down significantly from its 52-week high of $555.45, reached in July 2025, even after recent strength that has helped pull shares up from a 52-week low of $349.20 hit in late June.
A Rotation Away From Chip Stocks
Much of Wednesday’s move reflected a broader shift in investor positioning across the technology sector, with capital flowing out of semiconductor names and into software-focused AI plays like Microsoft. That rotation has become an increasingly common pattern in recent sessions, as investors periodically reassess relative valuations between hardware-focused AI infrastructure companies and software companies working to monetize AI capabilities within their existing product ecosystems.
A Difficult Start to 2026, Despite Strong Fundamentals
Microsoft’s stock has faced persistent pressure throughout the first half of 2026, falling as much as 19% to 21% year-to-date at various points, weighed down by investor anxiety over the scale of the company’s AI-related capital expenditures, questions about the pace of Copilot adoption, and a securities fraud class action filed following the company’s January 28 earnings reaction.
Despite that pressure, Microsoft’s underlying operating results have continued to show strength. The company’s fiscal third-quarter results beat expectations, with earnings per share of $4.27 compared with a consensus estimate of $4.09, on revenue of $82.89 billion, up 18.3% year over year. Azure cloud revenue grew 40% during the quarter, while capital expenditures rose sharply to $30.88 billion, up 84.39% year over year, reflecting the scale of Microsoft’s continued investment in AI infrastructure.
Nadella Highlights AI Business Growth
Microsoft Chief Executive Satya Nadella has continued emphasizing the company’s rapid AI-related revenue growth in recent public commentary, pointing to figures that suggest Microsoft’s AI business has already scaled to a meaningful size within the broader company.
“Our AI business surpassed an annual revenue run rate of $37 billion, up 123% year-over-year,” Nadella said, according to recent commentary tied to the company’s most recent earnings disclosure.
Nadella has also emphasized that Microsoft remains in the early stages of integrating AI capabilities across its broader product lineup, framing the company’s current AI monetization efforts as just the beginning of a longer-term transformation across its software and cloud businesses.
A Major Extension of the OpenAI Partnership
Microsoft’s relationship with OpenAI has continued to serve as a central pillar of its broader AI strategy. The company recently extended its partnership with OpenAI through 2032, securing a $250 billion incremental Azure commitment alongside expanded intellectual property rights tied to the partnership. That extended agreement has been cited by several analysts as a key factor supporting bullish long-term price targets on Microsoft’s stock.
Microsoft has also begun replacing certain OpenAI and Anthropic models with its own proprietary MAI models within products such as Excel and Outlook, a shift some analysts believe could materially improve the unit economics associated with Microsoft’s Copilot AI assistant over time.
Commercial Backlog Signals Strong Demand
Beyond quarterly revenue figures, Microsoft’s commercial remaining performance obligations, a measure of contracted future revenue, reached $627 billion during its most recent reporting period, up 99% year over year. Several analysts have pointed to that figure as a demand signal that significantly outpaces current market concerns about the company’s near-term growth trajectory.
Mixed Analyst Sentiment Amid the Pullback
Wall Street’s view of Microsoft has remained largely positive despite the stock’s difficult year-to-date performance. According to recent analyst tracking, roughly 94% of analysts covering Microsoft maintain a “Buy” rating, with an average 12-month price target of approximately $559.86 to $560.13, implying substantial upside from current trading levels.
Not all recent analyst actions have been uniformly bullish, however. Wells Fargo recently lowered its price target on Microsoft to $625 from $650, even while Evercore ISI raised its own price target to $525 from $510 and maintained an Outperform rating on the stock. Benchmark separately initiated coverage of Microsoft with a Buy rating, characterizing the stock’s recent pullback as a long-term buying opportunity for investors willing to look past near-term volatility.
Legal Challenges Add to the Narrative
Microsoft’s stock decline earlier in the year has also drawn legal scrutiny, with multiple law firms announcing securities class action investigations and lawsuits tied to the company’s January earnings reaction. Those legal proceedings allege that Microsoft misled investors regarding Copilot adoption rates and Azure growth trends, adding an additional layer of uncertainty for some investors even as the company’s underlying financial results have continued to exceed consensus expectations.
Workforce Reductions Amid AI Investment
Microsoft has also continued adjusting its workforce even as it ramps up AI-related capital spending. The company offered voluntary buyouts to approximately 7% of its U.S. employees earlier this year, following layoffs of more than 15,000 employees during the prior year, according to reporting on the company’s ongoing organizational restructuring efforts.
Earnings Report Looms as Key Catalyst
With Microsoft’s fiscal fourth-quarter earnings report scheduled for July 29, investors are increasingly viewing the upcoming release as a potential turning point capable of resetting sentiment toward the stock after a challenging first half of the year. Some market analysts have suggested the report could serve as a launchpad for a broader stock recovery, given the significant gap that has emerged between Microsoft’s underlying financial performance and its year-to-date stock price decline.
As Microsoft approaches its next earnings report, investors will be watching closely for continued Azure growth momentum, updated guidance on AI-related capital spending plans, and further evidence of Copilot’s commercial traction across enterprise customers. Should the company’s results reinforce the bullish narrative built around its expanding AI business and substantial commercial backlog, market watchers suggest Microsoft’s stock could be positioned for a more sustained recovery heading into the second half of 2026, following one of its most turbulent stretches in recent years.
908 Devices Inc. (MASS) Presents at 17th Annual Midwest IDEAS Conference – Slideshow
One Nation has claimed victory in the Secret Harbour by-election to win its first ever seat in the Western Australian legislative assembly.
With almost 40 per cent of voting counted, One Nation candidate Luke Herdegen declared himself to be the new member for the former Labor stronghold.
By 10pm on Saturday, Mr Herdegen was looking comfortable with almost 54 per cent of the vote on a two-party preferred basis.
Labor’s Georgia Tree was trailing at 46 per cent.
On primary figures, One Nation was heading towards 36 per cent when Mr Herdegen claimed the win.
Liberal candidate Ryan Robertson had just 17 per cent, or nearly 2,300 votes, at the same time.
Premier Roger Cook had repeatedly warned Labor was in the fight of its life to retain Secret Harbour after the retirement of 19-year incumbent Paul Papalia.
The win for Mr Herdegen comes despite One Nation cruising through the campaign with no targeted policies and the revelation he had been a heavy cocaine user while living in London in 2016 and associated with “Albanian underworld figures”.
When Ms Hanson came to Perth during the campaign she told reporters she had no idea of that part of her candidate’s background.
“I haven’t heard that about him, at all,” Mrs Hanson said after speaking at a Perth breakfast event.
“If there is an issue there, I’m sure it will be brought to my attention. But I will be asking questions about it.”
Mr Herdegen said he had written about his experience with drugs, alcohol and gangsters to help others going through addiction.
The Liberal candidate, Ryan Robertson, offered a stark difference in background to the One Nation hopeful.
He had served in the Australian navy and was once submariner of the year.
Liberal leader Basil Zempilas repeatedly denied his plan was to run dead in Secret Harbour because One Nation had the better chance of unseating Labor.
But as the by-election campaign was about to get underway, Mr Zempilas described One Nation as “an opportunity” rather than a threat.
That prompted federal MP Andrew Hastie, whose seat of Canning overlaps with the state seat of Secret Harbour, to criticise Mr Zempilas for running up the white flag.
One of the strangest, and possibly costly moments of the campaign, came when Ms Tree was standing behind Premier Roger Cook on August 2, when a $156 million campaign commitment to build a train station at Karnup was announced.
“Can I ask few questions for Georgia, please,” veteran political reporter Geof Parry said, as the premier appeared to wind-up the press conference.
“Nuh, we need to keep moving,” Mr Cook responded while moving away from the lectern.
“Sorry about that.”
The decision to prevent Ms Tree from speaking, and speculation about why it was made, distracted from her bid to hold Secret Harbour.
“It was not ideal because I do want to talk about Karnup and I’m happy to take any questions you have today,” Ms Tree said at later press conference in Mandurah.
Wall Street’s main indices have ended lower, with investors turning cautious after Federal Reserve chair Kevin Warsh reiterated the central bank’s focus on fighting inflation, increasing prospects for a rate hike.
Bessent says yen moves ’pretty contained’ and not disorderly
Oil jumps more than 2% after US attack on Iran’s Larak island
Deputy PM Phiphat Ratchakitprakarn urged enhanced safety standards in Thailand’s bus industry and AI use in inspections, emphasizing passenger safety, staff training, and collaboration among transport and tourism sectors.
Key Points
- Deputy Prime Minister and Transport Minister Phiphat Ratchakitprakarn emphasized the need for stricter safety standards in Thailand’s passenger bus industry and advocated for increased use of artificial intelligence in vehicle inspections during the Thai Bus Operators Association’s 2026 Annual General Meeting.
- He stressed the importance of passenger safety, highlighting the necessity for operators to educate travelers on emergency procedures, including locating exits and evacuation methods. The Department of Land Transport was tasked with enhancing vehicle inspections and driver monitoring through AI technology.
- Phiphat urged collaboration among transport and tourism authorities, tour companies, and bus operators to ensure safe, efficient transportation for international visitors, which is vital for their initial experience in Thailand. He reaffirmed that cooperation between government and private sectors is key to improving service standards.
Deputy Prime Minister and Transport Minister Phiphat Ratchakitprakarn has called for tighter safety standards across Thailand’s passenger bus industry and greater use of artificial intelligence in vehicle inspections. Speaking at the Thai Bus Operators Association’s 2026 Annual General Meeting in Bangkok today (Aug 26), Phiphat placed passenger safety at the center of efforts to modernize road transport and support tourism.
Safety requirements should cover vehicles, drivers, onboard personnel, and passenger readiness for emergencies. Operators were urged to ensure travelers know the locations of emergency exits, how to open emergency doors, and what to do during an evacuation. The Department of Land Transport was also instructed to tighten vehicle inspections and driver oversight while exploring AI-assisted systems to improve inspection accuracy and efficiency.
Phiphat also called for closer coordination among transport and tourism authorities, tour companies, and bus operators. Passenger buses are often among the first services international visitors encounter after leaving airports, railway stations, or seaports, making safe vehicles, professional drivers, and quality service important to their first impressions of Thailand.
The transport minister affirmed that cooperation between government agencies and private operators will remain critical to improving service standards and delivering reliable transportation for residents and visitors.
Source : Thailand’s Transport Minister Urges Tighter Safety Standards for Passenger Buses
The Tourism Authority of Thailand (TAT) partners with Private Luxury Events to host Ultra Thailand 2027, connecting Thailand’s luxury tourism with global networks, emphasizing Thai culture, personalized service, and high-value tourism.
Ultra Thailand 2027: Elevating Thailand’s Luxury Travel Network
Bangkok is set to host Ultra Thailand 2027, a landmark event organized by the Tourism Authority of Thailand (TAT) in collaboration with London-based Private Luxury Events. Scheduled for June 20–24, 2027, at the Four Seasons Hotel Bangkok, this prestigious gathering marks Ultra’s first venture into Southeast Asia. The invitation-only event aims to connect Thailand’s tourism industry with an exclusive international network catering to ultra-high-net-worth travelers. TAT Governor Ms. Thapanee Kiatphaibool highlighted that Ultra Thailand 2027 will embed Thailand into one of the most influential luxury travel networks globally. The initiative aims to highlight a unique expression of Thai luxury, celebrating personalized service, cultural richness, and world-class experiences.
Fostering High-Value Business Opportunities
Ultra Thailand 2027 serves as a platform for building invaluable business connections within the global high-value travel market. The event brings attention to Thailand’s luxury offerings, providing local tourism partners with enhanced business opportunities. Ultra is distinguished as one of the most exclusive gatherings for ultra-luxury travel, attracting top-tier buyers and VIP representatives who design bespoke journeys. With a community comprising esteemed organizations like AMAN and Orient Express, Ultra continues to sell out annually. As Bangkok gains prominence on the global wealth stage, the event aligns with the city’s rising ultra-high-net-worth population, underscoring Thailand’s place in Asia’s emerging wealth markets.
A New Era for Thai Tourism and Luxury
Amid increasing investments from leading hospitality brands in Bangkok, such as Aman Nai Lert and The Langham, TAT focuses on promoting high-value tourism rooted in wellness and personalisation. This strategic direction embraces the Thai spirit of “nam jai”—generosity and warmth—allowing Ultra’s community to experience a deeper, more authentic expression of luxury. Christy Kuplic, Managing Director of Private Luxury Events, emphasized Bangkok’s growing significance in luxury travel, noting the timely arrival of Ultra amid expanded private wealth and international investment in Thailand. Private Luxury Events, renowned for fostering quality connections within the luxury travel industry, recognizes Bangkok’s momentum and is eager to explore its potential alongside TAT in 2027.
Source : TAT partners Private Luxury Events to host Ultra Thailand 2027 in Bangkok
Is a ‘Bessent doctrine’ taking shape in global FX policy?
Faraday Future expands robotics push in Middle East, set to launch new products
President Donald Trump signs an order renaming Lake Ontario to Lake America amid trade tensions with Canada.
Google Maps has begun displaying “Lake America” in place of Lake Ontario for users in the United States after President Donald Trump ordered the body of water renamed.
Google said the change began rolling out Saturday after the U.S. Geographic Names Information System (GNIS) formally updated the lake’s name from Lake Ontario to Lake America.
“Since we update Google Maps to reflect name changes in official government sources, which is GNIS for the U.S., people using Maps in the U.S. will see ‘Lake America,’ those in Canada will continue to see ‘Lake Ontario,’ and those outside of the U.S. and Canada will see both names,” Google said.
CANADA PLANS TARIFF RETALIATION AFTER TRUMP WARNS ITS LEADERS TO ‘FALL IN LINE’
US President Donald Trump displays a signed executive order in the Oval Office of the White House in Washington, DC, on Aug. 27, 2026. (Al Drago/The Washington Post/Bloomberg via Getty Images)
“These updates follow our long-standing policy for bodies of water with names that vary from country to country, and are starting to roll out now,” the company added.
White House communications director Steven Cheung highlighted the change on X on Sunday.
“It’s official! LAKE AMERICA on Google Maps,” Cheung wrote.
TRUMP SAYS 50% TARIFFS ON CANADIAN VEHICLE, STEEL IMPORTS TO HIT JAN 1
“Making the Great Lakes Even Greater” signage during an executive order signing in the Oval Office of the White House in Washington, DC, on Aug. 27, 2026. (Al Drago/The Washington Post/Bloomberg via Getty Images)
The update comes days after Trump signed an executive order Thursday directing the Interior Department to rename Lake Ontario to Lake America in the United States.
“The Lake will continue to play a pivotal role in shaping America’s future and the global economy,” Trump wrote.
“In recognition of this flourishing economic resource and its critical importance to our Nation’s economy and its people, I am directing that the Lake officially be renamed as Lake America.”
TRUMP PAUSES 50% TARIFFS ON CANADA HOURS BEFORE DEADLINE AFTER ANNOUNCING POTENTIAL DEAL
A Canadian flag flies along the Lake America waterfront in Toronto on Aug. 27, 2026. (Cole Burston / AFP via Getty Images)
The president’s decision also comes amid escalating trade tensions between Washington and Ottawa.
U.S. tariffs of 50% on about $20 billion worth of Canadian goods took effect Aug. 22 after trade talks collapsed.
Canada retaliated with tariffs on roughly $20 billion in U.S. imports that are set to take effect Sept. 8, according to Reuters.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Google could not immediately be reached by FOX Business for comment.
Reuters contributed to this report.
US launches missiles near Strait of Hormuz in first attack on Iran in weeks as Tehran strikes back at base in Jordan
908 Devices Inc. (MASS) Presents at 17th Annual Midwest IDEAS Conference – Slideshow
Chhetri admits envy as India set to face Brazil and Uruguay in friendlies | Football News
-
Crypto World5 days agoSpaceX stock could rise 75% to $240, JPMorgan says
-
Fashion2 days agoWeekend Open Thread: Maeve – Corporette.com
-
Crypto World3 days agoBitcoin’s 22% rally now needs real demand to outlast Treasury liquidity boost
-
Crypto World4 days agoWarsh Jackson Hole keynote puts financial innovation first
-
Crypto World6 days agoA $30 Billion AI Fund Implodes, Now the SEC Is Investigating Wall Street’s Role
-
Business3 days agoSalesforce Stock Soars 19% as Blowout Earnings and Agentforce AI Growth Silence Software Skeptics
-
Crypto World5 days agoDid Trump Just Move SpaceX Stock With One Truth Social Post?
-
Crypto World4 days agoElon Musk Grok Bot Promise: We Will Make You Whole if AI Loses Your Money
-
Business4 days agoWalmart takes aim at younger shoppers with new fashion brand
-
NewsBeat4 days agoLindsay Clancy jury braces for closing arguments as judge tells court: ‘You’ve heard all the evidence’ – Live updates
-
Business3 days agoApple Confirms September 9 Keynote and Reveals Its Full Pre-Order Schedule
-
Crypto World2 days agoBitcoin price tests $82K resistance as Brandt stays long
-
Crypto World4 days agoNVIDIA revenue hits $96.2B as AI demand doubles
-
Business6 days agoModerna CEO warns China is pouring state money into mRNA technology
-
Business5 days agoThailand’s Eastern Economic Corridor Capital City (EECiti): Key Developments and Investment Opportunities
-
Business6 days agoNVIDIA Stock Drops Nearly 2 Percent to $210 on Seventh Losing Day Ahead of Critical AI Earnings
-
Business2 days agoiPhone 18 Pro Pre-Orders Could Shift to Saturday as Apple Reportedly Avoids September 11 Anniversary
-
Business2 days agoOnto Innovation Stock: AI’s Next Bottleneck Is Yield (NYSE:ONTO)
-
Crypto World7 days ago$92 Billion Nvidia Earnings Could Make or Break the AI Trade
-
Crypto World4 days agoNvidia Q2 Earnings Reveal $96.2 Billion Beat, So Why Is NVDA Falling?
You must be logged in to post a comment Login