Issues have been tough at tech big Microsoft MSFT -0.66% ▼ currently, notably for workers. Layoffs, firings, the return-to-office mandate…all of these items are contributing to what some are calling a “tradition of worry” at Microsoft. However Microsoft itself could also be extra frightened than its workers. That worry is protecting buyers , although, as Microsoft shares gained modestly in Friday afternoon’s buying and selling.
We have now already seen a few of CEO Satya Nadella‘s issues on this entrance. However he additionally got here out with an anecdote of his personal, about his want rising as much as work at Digital Tools Company, or DEC. DEC was an enormous deal within the Seventies, however quickly discovered itself rolled beneath by IBM IBM +2.14% ▲ and others. A number of of Microsoft’s personal workers, in actual fact, got here from DEC; they have been a part of the crew on Home windows NT. Thus, it was straightforward to marvel what number of Microsoft merchandise—from Workplace to Azure—may not be crucial in an AI period.
This story haunts Nadella to this present day, stories notice, and probably provides a purpose why Microsoft is seemingly turning by itself workers. Microsoft workers have talked about that morale inside Microsoft is at ”…an all-time low.” So if the CEO of Microsoft is at the moment petrified of his firm’s future, and frantically circling the wagons, then it must be little shock that a few of its personal workers may be on the lookout for a approach out as nicely.
In its second quarter 2025 investor letter the Macquarie Giant Cap Progress Fund highlighted shares equivalent to Microsoft Company NASDAQ MSFT Microsoft Company NASDAQ is a multinational software program firm that develops and helps software program, providers, units, and options. The one-month return of Microsoft Company NASDAQ MSFT was 2.71%, and its shares gained 19.47% of their worth over the past 52 weeks On September 19, 2025, Microsoft Company NASDAQ MSFT inventory closed at $517.93 per share, with a market capitalization of $3.85 trillion.
Macquarie Giant Cap Progress Fund said the next relating to Microsoft Company (NASDAQ:MSFT) in its second quarter 2025 investor letter:
The most important contributors have been our underweight to Apple Inc., underweight to Eli Lilly and Co., and place in Microsoft Company (NASDAQ:MSFT). Microsoft, a major place within the portfolio, rallied following better-than-expected outcomes. The enterprise demonstrated energy throughout each phase, however what notably inspired the market was accelerated progress of its cloud computing platform Azure. Whereas AI providers proceed to contribute meaningfully to Azure progress, the phase additionally noticed energy in Azure cloud (non-AI) providers as firms proceed to acknowledge the significance of shifting from on-premises to cloud.”
In a lot, a lot lighter information, the upcoming Tokyo Recreation Present could have a shock further visitor coming in as a Microsoft Recreation Studios title will likely be proven. We don’t but know simply what that title is, nevertheless, and that has outdoors viewers firing up hypothesis about what will likely be proven.
Present hypothesis means that this could possibly be Forza Horizon 6, which might make sense. Earlier stories steered that the subsequent installment of Forza Horizon can be available, nevertheless it had but to point out up on the lists. Now, with this improvement, Microsoft could have slipped this main title in for an enormous launch trailer at a serious recreation present.
Microsoft Company (NASDAQ:MSFT) is in second place our record of 30 Most Standard Shares Amongst Hedge Funds. As per our database, 294 hedge fund portfolios held Microsoft Company (NASDAQ:MSFT) on the finish of the second quarter in comparison with 284 within the earlier quarter. Within the fourth quarter of fiscal yr 2025, Microsoft Company (NASDAQ: MSFT) reported income of $76.4 billion, representing an 18% improve, or 17% when adjusted for fixed foreign money. Whereas we acknowledge the potential of Microsoft Company (NASDAQ:MSFT) as an funding, we consider sure AI shares supply higher upside potential and carry much less draw back danger. In the event you’re on the lookout for a particularly undervalued AI inventory that additionally stands to profit considerably from Trump-era tariffs and the onshoring pattern, see our free report on the greatest short-term AI inventory.
In one other article, we lined Microsoft Company (NASDAQ:MSFT) and shared the record of AI shares making huge strikes on Wall Avenue. As well as, please try our hedge fund investor letters Q2 2025 web page for extra investor letters from hedge funds and different main buyers.
Turning to Wall Avenue, analysts have a Robust Purchase consensus score on MSFT inventory based mostly on 33 Buys and one Maintain assigned previously three months, as indicated by the graphic beneath. After a 16.81% rally in its share value over the previous yr, the common MSFT value goal of $626.88 per share implies 22.53% upside potential.
The White Home is making ready new government actions on quantum expertise, in response to a report by NextGov. These actions may vary from one order to as many as three, with the primary objective being to information federal companies towards post-quantum cryptography.
