Key Stats for Microsoft Stock
- Price change for Microsoft stock in last 6 months: 27%
- $MSFT Stock Price as of Oct. 16: $529
- 52-Week High: $554
- $MSFT Stock Price Target: $599
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What Happened?
Microsoft (MSFT) has pulled out of a data center deal with British cloud provider Nscale, the Telegraph reported on Sunday, and Reuters relayed the story.
Microsoft is one of Nscale’s two largest customers, and it recently ended its agreement for the Loughton, Essex site.
The paper did not say why and Microsoft declined to comment.
The Telegraph said Nscale had faced repeated delays. It also said National Grid officials told Nscale they did not expect power for the site until the 2030s.
Nscale said its relationship with Microsoft “remains strong and long-term.” It blamed a London-wide grid issue and said other contracts are not affected.
It is looking at other power sources for the site and other UK locations.
MSFT Stock Revenue, EBIT and Free Cash Flow Estimates in Billion USD (TIKR)
Nscale filed for a US IPO last month, and its prospectus lists Microsoft and Anthropic as expected major customers.
The company supplies compute, power, data centers, and AI software. It competes with CoreWeave, Nebius, Crusoe and Lambda.
Total contracted value went from $100 million to more than $103 billion in two and a half years.
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What the Market Is Telling Us About Microsoft Stock
For Microsoft stock, this looks like a minor event as the report points to a power problem at one site and not weak demand. Microsoft has not given a reason, so it is best not to read too much into it.
The latest earnings show a strong business.
Revenue rose 18% to $90 billion, Azure grew 43%, and management said demand still exceeds supply.
Microsoft said it added 31 new data centers in the quarter.
Capital spending stood at $41 billion, while CFO Amy Hood expects calendar 2026 capex of about $175 billion.
She also said much of that spending is on short-lived assets like chips, so the company can slow down if demand changes.
MSFT Stock Valuation Model (TIKR)
That flexibility matters for Microsoft stock. Hood said land and data center builds are a smaller part of costs, and timing can be adjusted. A delayed site fits that picture.
Investors will watch for any reason Microsoft gives. For now, Microsoft stock rests on Azure growth and its $678 billion backlog.
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So what is Microsoft stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
Source: www.tikr.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
