# Experts Anxious as Microsoft’s Equity Plunges Due to Azure Performance Apprehensions
### Main Aspects
* Microsoft’s equity value decreased following its Q2 financial statement on Wednesday night.
* Several experts decreased their projected values for the firm because of slower-than-anticipated expansion in Microsoft’s Azure digital platform.
* Experts mostly sustain a “purchase” ranking on Microsoft equity.
Microsoft (MSFT) equities underwent a considerable decrease on Thursday after the firm’s Q2 financial statement exposed weaker-than-predicted expansion in its digital sector. This motivated several experts to diminish their projected values for the “Magnificent Seven” equity.
UBS upheld a “purchase” ranking but decreased its projected value from $525 to $510, mentioning apprehensions regarding Microsoft’s Azure digital platform. UBS experts signaled that they anticipate Azure’s expansion this quarter to be beneath forecasts.
They observed that the immediate emphasis would be on comprehending what transpired with Azure, whose expansion was “substantially beneath our forecasts.” According to a record of the financial statement teleconference furnished by AlphaSense, Microsoft attributed Azure’s underperformance to performance matters within the non-AI facets of the division.
Of the 19 brokerages tracked by Visible Alpha, all but one possess a “purchase” or comparable ranking on Microsoft equity. Their consensus projected value is approximately $516, signifying an increase of about 24% from Thursday’s closing value, following the equity’s single-day decline of 6%.
Some experts spotlighted favorable indications in AI, encompassing Microsoft’s Azure AI Foundry, which permits consumers to construct custom AI applications, and has already attained over 200,000 monthly active consumers within two months.
Bank of America termed Microsoft its “prime selection” and sustained its projected value of $510. The bank elevated its 2025 earnings per equity estimate, calling Microsoft an “AI victor in applications and infrastructure.”
Morgan Stanley decreased its price objective for the equity by a modest $10, establishing a fresh objective of $530. Nevertheless, they still advise purchasing the equity, upholding their “overweight” evaluation, implying they anticipate it will do better than the typical stock in its industry.
