New York, Feb 7, 2026, 09:33 EST — Market closed
- Microsoft finished Friday at $401.14, gaining 1.9% despite what was a tough week for mega-cap tech stocks.
- Investors remain stuck on AI capital spending and the big question: can Azure keep expanding without putting pressure on margins?
- The U.S. jobs report lands Feb. 11, with CPI inflation data following on Feb. 13—two near-term hurdles for markets.
Shares of Microsoft Corp (MSFT.O) climbed 1.9% Friday, finishing the session at $401.14. That move helped stabilize the stock following a choppy period for Big Tech.
Microsoft finds itself at the heart of the AI investment debate—who’s spending, and who’s profiting. Software stocks have been losing steam, prompting investors to look elsewhere. “Rotation is the dominant theme this year,” Edward Jones senior global investment strategist Angelo Kourkafas said. Reuters
The sector’s facing headwinds tied to hefty capital spending plans—think data centers, chip investments, all the long-term stuff. A $600 billion AI spending wave set for 2026, flagged by Reuters, has investors on edge about short-term profits. “It got too pricey,” said Andrew Wells, chief investment officer at SanJac Alpha. Reuters
Shares of Microsoft slipped roughly 5% on Thursday, pressured by concerns over AI spending that hit the Nasdaq following Alphabet’s warning of increased costs. The stock later steadied on Friday as risk sentiment rebounded.
Analyst sentiment isn’t providing relief. Stifel downgraded Microsoft, shifting to “hold” from “buy” and hacking its price target down to $392 from $540. Brad Reback, the analyst, described it as “time for a break,” noting investor unease over Azure’s growth rate and stiffer AI competition. Barron’s
It’s not just tech ramping up. WEC Energy plans to tack on $1 billion in capital spending across five years to scale up power for Microsoft’s Wisconsin data centers. “We have energy flowing to the site,” CEO Scott Lauber told investors, adding that the first phase should be running this year. Reuters
Competitors are stoking similar jitters. Amazon outlined $200 billion in capital spending for 2026, according to Reuters. AWS, its cloud unit, posted $35.6 billion in revenue for the December quarter. Google Cloud jumped 48% to $17.75 billion, while Microsoft’s Azure was up 39% for the same stretch.
Microsoft’s current story continues to hinge on its latest earnings. Back in late January, the company reported that capital spending shot up almost 66% to $37.5 billion for the October-December stretch, with CEO Satya Nadella describing AI as just getting started—he put it as the “early innings.” Microsoft also revealed its M365 Copilot assistant had picked up 15 million annual users. Reuters
The rebound heading into the weekend leaves the debate unresolved. Should more companies ramp up spending without solid proof of returns—or if bond yields jump after a strong inflation number—high-multiple tech stocks could find themselves under fresh pressure in a hurry.
Looking ahead to next week, investors will be watching for the U.S. January jobs data on Feb. 11, with January CPI following two days later on Feb. 13—both dates shifted after the recent government shutdown forced updates to the release calendar. Per the Labor Department, CPI numbers are set to cross at 8:30 a.m. ET.
