Microsoft has been one of the worst-performing large-cap tech stocks of 2026, down about 20% year to date, even as the company keeps expanding its AI business and growing Azure at a pace most cloud companies would envy.
A lot of investors have been sitting on their hands, waiting either for a reason to get back in or a reason to stay patient.
Bank of America just gave them something to chew on.
The bank reiterated its Buy rating and $500 price objective ahead of Microsoft's fiscal fourth-quarter earnings on July 29, updating its estimates to reflect stronger Azure growth expectations. But the note isn't just a target confirmation. It lays out what the bank thinks investors need to see from the print, and what happens to the stock if they don't get it.
Azure is the number that matters most on July 29. Microsoft guided for Azure revenue growth of 39% to 40% year over year in constant currency during the quarter, and Bank of America says hitting or beating that range is critical.
A lot of investors have been sitting on their hands, waiting either for a reason to get back in or a reason to stay patient.
Bank of America just gave them something to chew on.
The bank reiterated its Buy rating and $500 price objective ahead of Microsoft's fiscal fourth-quarter earnings on July 29, updating its estimates to reflect stronger Azure growth expectations. But the note isn't just a target confirmation. It lays out what the bank thinks investors need to see from the print, and what happens to the stock if they don't get it.
Azure is the number that matters most on July 29. Microsoft guided for Azure revenue growth of 39% to 40% year over year in constant currency during the quarter, and Bank of America says hitting or beating that range is critical.
29 days ago
