MSFT Has Gone Nowhere in 2026 -- Azure Says That's a Mistake

Microsoft shares, at about $497, closed on Sept. 2 nearly where they began 2026, leaving investors who held the stock since the start with at least a partial reprieve. After a record-setting rally following earnings, the year’s losses that had approached 30% were largely erased in one session. The article says fears about AI spending, the effect of artificial intelligence on software companies, and concern over Copilot adoption didn’t pan out materially. Even so, the market still appeared to discount the growth of Azure. In the latest earnings release, Azure accelerated—cloud and other services revenue rose 43% (up from 40% the prior quarter). Azure also crossed $100 billion in annual revenue for the first time, with guidance pointing to roughly 45% growth for the current quarter. Remaining performance obligations jumped 84% to a $678 billion backlog, and the stock trades around 26x forward earnings despite improving EPS estimates.