MSFT

Microsoft Corp.

2026-01-16 06:20 PM

+1.11%

Microsoft rebounds after multi-day selloff as analyst predicts strong Q4 earnings

Wedbush analyst Dan Ives predicted 'very strong' Q4 earnings for Microsoft and other Big Tech companies, citing significant AI enterprise demand and comparing the current moment to 'mid-1996' genuine adoption rather than speculative bubble. BlackRock and Microsoft's $30 billion AI infrastructure fund also continued gaining attention, with $12.5 billion raised so far.

Analysis

This gain breaks a four-day losing streak that saw MSFT decline roughly 5% on data center cost concerns. The rebound appears to be a combination of technical bounce and positive analyst sentiment ahead of earnings season. MSFT outperformed both its sector (XLK flat) and the broader market (SPY +0.10%), suggesting some stock-specific buying interest, though the modest gain after such a sharp decline could simply reflect oversold conditions.

Sources

Date: 2026-01-16

Price: $461.71

Type: Stock Specific

Confidence: medium