BUZZ-Microsoft drops after disappointing cloud growth forecast

Shares of Microsoft MSFT.O down 6.2% at $415 early Thurs after co forecasted disappointing growth in its cloud computing business

If MSFT shares exceed 6.05% decline on Oct 31, 2024, they would register biggest one-day pct drop since a 7.7% fall on Oct 26, 2022

MSFT CFO Amy Hood said Azure unit would grow 31%-32% in current qtr, below Wall Street's expectations of 33%

Some analysts, however, view MSFT's cloud outlook as a 'short-term blip'

BofA Global Research said in note that rare execution challenges impacted Azure, though appear fixable, and reiterated 'buy' rating and $510 PT

Several brokerages cut their PTs, including Bernstein, UBS, and Morgan Stanley

Of 57 brokerages covering MSFT, recommendation breakdown is 53 "strong buy" or "buy," and rest "hold"; median PT is $500 - LSEG

With move on Thurs, stock down 1.6% YTD. In comparison, Dow Jones Industrial avg .DJI up 5.5% and S&P 500 Tech sector .SPLRCT off 2.7% in 2025