Microsoft stock is testing lower boundaries. What’s pressuring MSFT?
Stifel Cuts Price Target On Margin PressuresStifel analyst Brad Reback kept a Hold rating on Microsoft but lowered his price target to $400 from $415.The firm pointed to a shift in Microsoft’s revenue mix as the core issue. Azure is growing nearly three times faster than the rest of the company, and Stifel expects Azure’s gross margin to continue compressing by 100 to 150 basis points each quarter through fiscal 2027.On the earnings side, Stifel said the Street’s fiscal 2027 EPS estimate of about $19.45 may be roughly $1.00 too high. The firm also highlighted that rising finance lease obligations could further weigh on earnings per share growth, even as management continues to target double digit operating income growth.Critical Levels To Watch For MSFT StockMomentum indicators also reflect stress. RSI is at 28.85, which signals that selling pressure has reached levels where the move is considered stretched. Readings below 30 often appear when declines become emotional or capitulation driven, although they do not guarantee that a durable bottom is in place.The broader trend structure continues to work against the bulls. The 20-day average is below the 50-day average, and the death cross from January, when the 50-day average slipped under the 200-day average, still defines the longer-term bias. With the stock down 28.63% over the past year, traders will likely treat any rebound as a test rather than a trend change until Microsoft can reclaim the major moving averages.
