MSFT

Microsoft Corp.

2026-01-16 09:53 PM

+0.70%

Microsoft rebounds after multi-day selloff as Morgan Stanley reaffirms bullish outlook

Morgan Stanley maintained its Overweight rating with a $650 price target, citing Microsoft's positioning to benefit from rising software spending and Azure's dominance as the preferred cloud vendor. Wedbush's Dan Ives also predicted 'very strong' Q4 earnings for Microsoft and other Big Tech names, comparing the current AI landscape to 'mid-1996' genuine adoption.

Analysis

This modest gain breaks a four-day losing streak that saw MSFT decline roughly 6% on data center cost concerns. The positive analyst commentary may be providing a floor after the recent selloff, though the stock merely matched its flat sector (XLK +0.04%). The Italian regulatory probe into Activision Blizzard mobile games and the Musk-OpenAI lawsuit proceeding to trial represent minor headwinds but don't appear to be moving shares today.

Sources

Date: 2026-01-16

Price: $459.86

Type: Stock Specific

Confidence: medium