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Microsoft Stock: Death Cross or Golden Opportunity?
23 Jan
Summary
- Microsoft's stock is nearing its earnings report on January 28, 2026.
- Investors will monitor Azure growth and AI monetization for tangible results.
- The stock's pullback offers a more reasonable valuation for long-term investors.
Microsoft Corporation (NASDAQ:MSFT) stock has experienced a three-month downturn, with a bearish death cross technical pattern forming in November 2025. As the company prepares to report earnings on January 28, 2026, investors are keenly observing the performance of its Azure cloud services and artificial intelligence initiatives.
Key metrics for the upcoming report include Azure growth, particularly whether AI workloads are boosting revenue, and the monetization of products like Copilot. Investor attention will also be on capital expenditures for data centers and overall profit margins, assessing the sustainability of growth strategies. Guidance will be crucial for stabilizing the stock.
Following the recent slide, MSFT's stock valuation seems more balanced, with a trailing 12-month P/E ratio near its historical low. This pullback may represent an attractive entry point for long-term investors, supported by Microsoft's diversified business across software, cloud, and AI.
A significant concern remains the AI investment narrative; while Microsoft is investing heavily, the long-term value justification for AI applications is still debated. However, the company's leadership in generative AI and potential in agentic AI position it for future productivity gains, making MSFT a stock to consider for long-term portfolios.
