Microsoft: Oversold And Still Growing

Konstantinos Kosmidis1.07K FollowersFollow5ShareSavePlay(8min)Comments(2)SummaryMicrosoft shares have meaningfully fallen since the last quarterly results were released, but the technical picture points to oversold conditions and stabilization.Q1 FY26 delivered $77.7B in revenue (up 18% YoY), with Intelligent Cloud up 28% and Azure revenue up 40%, driving broad-based growth.Operating income rose 24% to $38B, EPS beat by ~13%, and free cash flow surged 33% despite elevated capex for AI and cloud infrastructure.MSFT's AI-driven momentum is real, not speculative; Q2 guidance calls for 14–16% revenue growth and Azure growth of ~37%, outpacing capacity.This seems like a good opportunity to buy a fast-growing business that is less sensitive to the macro risks than other mega caps at a fair valuation. lcva2/iStock Editorial via Getty Images YTD, Microsoft (MSFT) has slightly underperformed the broader market thanks to a recent sharp repricing of the shares. Before that, it had been consistently outperforming, so the shift is worth investigating. Compared to mostThis article was written byKonstantinos Kosmidis1.07K FollowersFollowI began learning about markets when I was 19. Today, my trading is informed by macro insights and technical indicators.When I'm neither working on my next article nor reading about macro and markets, I either run, cycle, or lift (probably thinking about macro and markets while doing so).Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You