By Bob Karr
Publication Date: 2026-02-17 12:34:00
Microsoft Corporation (NASDAQ:MSFT) is among the 14 Best Cloud Computing Stocks to Buy Right Now.
On February 9, Melius Research downgraded the company’s stock to “Hold” from “Buy” with a price objective of $430. As per the analyst, the company’s FCF can be impacted because it needs to increase its capex requirements to compete with Google and Amazon, as Microsoft Corporation (NASDAQ:MSFT)’s 365 business is exposed to threats from AI.
Furthermore, the analyst stated that if Microsoft Corporation (NASDAQ:MSFT) doesn’t increase the capex requirements, it would demonstrate either a need for earnings management or an issue with the execution. Also, given the firm’s new FCF estimates, Microsoft Corporation (NASDAQ:MSFT)’s shares are very expensive.
Separately, Microsoft Corporation (NASDAQ:MSFT) released its Q2 2026 results, with Microsoft Cloud revenue crossing $50 billion,…
