NEW YORK, Jan 24, 2026, 05:28 (EST) — The market has closed.
- Microsoft shares climbed 3.3% on Friday, wrapping up a volatile week for U.S. stocks.
- Before the company’s Jan. 28 report, broker price-target cuts stacked up
- Traders are gearing up for a “show-me” week focused on Big Tech, cloud expansion, and AI investment
Microsoft (MSFT.O) shares climbed 3.3% on Friday, closing at $465.95 after fluctuating between $449.05 and $471.07. The software giant’s market cap stands near $3.85 trillion as U.S. markets prepare to reopen Monday.
The bounce is crucial as Microsoft gears up to report next week. Expectations are steep. Investors need clear numbers on Azure’s cloud demand and reassurance that AI spending isn’t outpacing returns.
It’s not only Microsoft making waves. Wall Street wrapped up a turbulent week, highlighted by Intel’s plunge after a gloomy forecast, with mega-cap techs propping up the Nasdaq. Julian McManus, a portfolio manager at Janus Henderson, noted, “We’re going to be in a ‘show-me’ period, where you have to actually put up the revenue growth.” 1
Before Microsoft’s earnings release, a few analysts have cut their price targets — the expected stock price range over the next year — but haven’t turned negative. UBS’s Karl Keirstead noted, “Given the evident de-rating across the software sector, we’re trimming our PT from $650 to $600,” highlighting a drop in valuation multiples investors are willing to pay for software stocks. 2
UBS highlighted Microsoft’s “Fairwater” AI data centers as a key near-term boost for Azure. A new site in Wisconsin is slated to start operations in the first quarter, per a note reported by TheFly. 3
Microsoft wrestled with service outages this week. On Friday, it announced Microsoft 365 access had been restored following disruptions that affected Outlook and other apps. Downdetector showed a steep drop in reports compared to the previous day’s spike. 4
Microsoft revealed that Azure and other cloud services revenue jumped 40% in the last quarter, driving most of its growth as clients ramp up spending on AI tools across their platforms. 5
The risk is clear. Should Azure growth or guidance disappoint, or if management hints at ramped-up capital spending, the stock might quickly erase Friday’s gains — particularly since software valuations are already shaky and concerns about reliability have resurfaced.
Looking ahead to the week, traders will be gauging if Friday’s gains hold up on Monday, and if the broader market gives megacaps room to stay in the game as new earnings and policy updates roll in.
Microsoft will release its fiscal Q2 results after markets close on Wednesday, Jan. 28, with a conference call scheduled for 2:30 p.m. Pacific, the company announced. 6
