Microsoft disables Israeli defense cloud services; shares edge lower

** Microsoft MSFT.O stock down 0.3% after co said it disabled certain cloud and AI services used by Israel Ministry of Defense, citing preliminary evidence of surveillance system in Gaza and West Bank
** Co acted after internal review supported media reports of IDF using Azure for civilian phone data collection, per Guardian article

** "We do not provide technology to facilitate mass surveillance of civilians," MSFT said in a blog post
** MSFT said move does not affect its cybersecurity services to Israel or other Middle East countries
** Stock up about 21% YTD, outperforming Nasdaq .IXIC, which rose 16%
** MSFT recently traded at 32x expected earnings, just above 5-yr avg. forward PE of 30