Microsoft hits 52-week low as Stifel cuts target to $400

1 min read | Published on 25 Jun 2026, 10:20 PM |Updated on 25 Jun 2026, 11:49 PM

Reviewed by

Radhika SScanX News Team

Key Highlights

Stifel analyst Brad Reback maintained a Hold rating on Microsoft but lowered the price target to $400 from $415, citing concerns that fiscal 2027 gross margins will fall to 63% due to Azure's growth and rising capital spending. The firm noted that fiscal 2027 EPS estimates may be $1.00 too high. Microsoft shares fell 3.90% to $351.22, a new 52-week low, with technical indicators showing significant downward pressure.

*this image is generated using AI for illustrative purposes only.

Microsoft Corp (NASDAQ: MSFT) shares fell 3.90% to $351.22 on Thursday, hitting a new 52-week low as Stifel analyst Brad Reback maintained a Hold rating and lowered the price target to $400 from $415. The revision reflects concerns over fiscal 2027 gross margin expectations, which Stifel believes do not fully account for the impact of Azure’s rapid expansion and rising capital spending squeezing cloud margins.

Stifel’s model projects fiscal 2027 gross margins will decline approximately 450 basis points from the prior year to roughly 63%. The firm attributes this shift to Azure growing nearly three times faster than the rest of the company, with its gross margin expected to compress by 100 to 150 basis points each quarter through fiscal 2027. Additionally, the firm suggests Wall Street’s fiscal 2027 EPS estimate of about $19.45 may be roughly $1.00 too high, noting that rising finance lease obligations could weigh on earnings per share growth despite management targeting double-digit operating income growth.

Technical indicators reinforce the bearish outlook. The stock is trading 12.7% below its 20-day simple moving average, 14.6% below its 50-day average, 12.6% below its 100-day average, and 21.7% below its 200-day average. The Relative Strength Index (RSI) stands at 28.85, indicating selling pressure has reached stretched levels. The stock is down 28.63% over the past year, with key resistance identified at $413.00.

Analyst	Rating	Previous Target	New Target
Brad Reback (Stifel)	Hold	$415	$400

How might Microsoft adjust its pricing strategy for Azure to mitigate the projected gross margin compression?

What impact could rising capital expenditures have on Microsoft's free cash flow generation over the next few years?

Will other analysts revise their fiscal 2027 EPS estimates following Stifel's downward adjustment?

Microsoft plans new datacenter campus in Pecos, Texas

0 min read | Published on 22 Jun 2026, 04:25 PM |Updated on 22 Jun 2026, 07:02 PM

Reviewed by

Ashish TScanX News Team

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Key Highlights

Microsoft announced plans to construct a new datacenter campus in Pecos, Texas, aimed at powering the next wave of artificial intelligence. The facility is designed to expand capacity for large-scale computing operations, supported by a 20-year power agreement with Chevron to ensure operational stability and energy security.

*this image is generated using AI for illustrative purposes only.

Microsoft announced plans to construct a new datacenter campus in Pecos, Texas, aimed at powering the next wave of artificial intelligence. The facility is designed to expand capacity for large-scale computing operations. This development follows a 20-year power agreement previously signed with Chevron to secure long-term energy supply for the site.

Strategic Expansion

The new campus represents a significant step in Microsoft's infrastructure development strategy. By leveraging the energy resources secured through the partnership with Chevron, the company aims to ensure operational stability and energy security for the facility. The agreement provides a framework for sustainable power solutions over the next two decades.