Microsoft stock: is post-earnings pullback last chance to buy cheap?

Microsoft reported a strong quarter—EPS $4.27 vs $4.07 est., Azure/cloud revenue +40% YoY and Microsoft Cloud >$54B with AI at a $37B run rate—but the stock has been under pressure as investors worry heavy AI-related capex will take too long to translate into revenue. The selloff reflects lingering concern about Microsoft’s $190B 2026 capex plan and whether Azure reacceleration and AI monetization will justify the spending. Analysts remain constructive (Morningstar $600 fair value; Morgan Stanley bullish). Market impact: the earnings beat removes one near-term hurdle, but the next catalyst is June-quarter guidance/Azure pacing; options priced ~6.5% move, creating a potential guidance-driven trading opportunity.