Microsoft at decade-low valuation
Microsoft's stock has fallen about 28%, hitting its lowest valuation versus the S&P 500 in a decade — a move some analysts call a rare buying opportunity given continued Azure and AI growth reported. The pullback crystallizes a debate: buy the dip for long-term tech exposure or treat it as a reminder to diversify away from employer-concentrated equity.
Microsoft’s fiscal Q2 results showed revenue of $81.3 billion and non‑GAAP EPS of $4.14 while Azure and other cloud services grew 39% year‑over‑year, per the company’s FY‑2026 Q2 press release. microsoft.com The quarter’s capital expenditures hit $37.5 billion, up 66% year‑over‑year with roughly two‑thirds of that spending directed to GPUs and other AI hardware, and Microsoft recorded a $7.6 billion GAAP gain tied to its OpenAI investments. cnbc.com Major brokerages have been vocal: Citigroup issued a rare “Buy” alert on Feb. 20, 2026, while Goldman Sachs maintained a Buy rating with a $600 price target, and the street’s average analyst price target sits near $603.27. markets.financialcontent.com Wealth‑planning outlets that work with tech employees note Microsoft’s RSU programs vest on multi‑year schedules (on‑hire awards over four years; annual awards vest quarterly over five years) and commonly recommend a repeatable plan to sell vested shares to manage concentration risk. cordantwealth.com
