The Core Bull Thesis Around Microsoft Remains Very Strong at $500

The Core Bull Thesis Around Microsoft Remains Very Strong at 0

By Alex Sirois
Publication Date: 2026-08-07 04:39:00

Microsoft (NASDAQ:MSFT | MSFT Price Prediction) at $499.86 sits at a pivotal level, and the fiscal 2026 earnings report is the reason. After a violent round trip that took shares from the low $500s down to the high $380s and back, the stock is once again testing the level bulls need to defend to keep the AI monetization narrative intact.

Microsoft is the second-largest company in the world by market cap, with a business anchored on Azure, Microsoft 365, and a widening AI stack built around Copilot and its restructured OpenAI relationship. Fiscal Q4 delivered $90.007 billion in revenue, up 17.75% year over year, and non-GAAP EPS of $4.74, the fifth consecutive quarter Microsoft has beaten Wall Street estimates.

The stock rebounded 28.55% over the past month, forcing every investor to make a call at $500. Azure crossed $100 billion in full-year revenue for the first time, growing 43% in Q4. Commercial Remaining Performance Obligations reached $678 billion, up 84% year over year,…