Microsoft’s Cloud Growth Outshines Market Skepticism, Investor Sees Upside
Microsoft's FY 2026 Q1 earnings revealed a 26% surge in cloud revenue to $49.1 billion, defying post-earnings share price declines. Despite a 5% dip since the report, the stock remains up 23% year-to-date—tracking closely with the NASDAQ Composite.
Top investor John Ballard, ranked among TipRanks' top 2%, argues the company's cloud dominance and AI integration position it for market-beating returns. 'Azure's growth trajectory isn't fully priced in,' he notes, pointing to Microsoft's $34.9 billion capex as strategic bets on AI infrastructure rather than inefficiency.