Microsoft’s $750 Million Perplexity Deal: Should You Buy or Sell MSFT Stock Now?

Microsoft just dropped $750 million on AI upstart Perplexity—and Wall Street is scrambling to read the tea leaves.

The Big Tech Bet

This isn't just another corporate partnership. It's a strategic land grab in the AI search wars. Microsoft is buying a direct stake in the company challenging Google's core business, bypassing the usual 'innovation through acquisition' playbook for something far more aggressive.

What It Means for Your Portfolio

Forget the hype. Look at the math. That $750 million is a rounding error in Microsoft's war chest, but the signal is deafening. The company is placing a massive, public bet that the future of search—and by extension, a huge chunk of its cloud and enterprise revenue—runs through AI. They're not just dipping a toe; they're diving headfirst.

The Trader's Dilemma: Buy, Sell, or Hold?

So, do you buy the rumor and sell the news? The deal itself is priced in. The real question is execution. Can Microsoft integrate this tech and actually dent Google's dominance? If yes, this move looks like genius. If not, it's another expensive experiment buried in the R&D line—a favorite pastime for tech giants with more cash than ideas.

The bottom line? This deal screams confidence in an AI-dominated future. But for investors, it's a volatility play wrapped in a long-term thesis. Maybe just buy and hold, and let the hedge funds do the panicking. After all, someone's got to pay for those yacht parties.

Buy or Sell Microsoft Stock After Perplexity Deal?

Microsoft’s Perplexity deal could be the key driver for its Azure cloud business. The $750 million partnership allows the startup to deploy models from OpenAI, Anthropic, and xAI through Microsoft’s Foundry service. Analysts from Barchart remain positive with the partnership, calling it a

Out of the 49 analysts, 41 of them gave out acall, while five others called for aThree others recommended “while revising their price prediction for Microsoft stock. The analysts predict that MSFT could gain from the Perplexity deal and boost its Azure cloud business.

Microsoft’s CFO Amy Hood acknowledged in the earnings call that Azure’s numbers could have been higher if the focus had been on external customers rather than internal needs.she said. MSFT could now get a breath of fresh life with the Perplexity deal, giving it a chance to scale up.