LinkedIn Just Cut Its Israel R&D Team. Microsoft Stock Investors Shouldn’t Sweat the Layoffs.

Microsoft shares were little changed after a report that LinkedIn is closing its Israel R&D center and laying off nearly all 50 employees there. The move appears to be a small cost-cutting and resource-allocation step rather than a sign of weakening demand, especially given LinkedIn’s reported 12% revenue growth in Microsoft’s fiscal fourth quarter. The broader story remains Microsoft’s strong AI and cloud momentum: fiscal Q4 revenue rose 18% year over year to $90 billion, Azure and other cloud services grew 43%, and Microsoft Cloud revenue increased 27% to $59.3 billion. Management also guided for another year of double-digit revenue and operating income growth, while continuing heavy AI infrastructure spending, including nearly $41 billion in capex during Q4. Analysts remain bullish, with a Strong Buy consensus and a mean target implying further upside from current levels.