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Microsoft Q2 FY2025 Review: More Consolidation Ahead (NASDAQ:MSFT)

1. Microsoft beat Q2 FY2025 estimates but stock fell due to Azure growth concerns. 2. Guidance shortfall for Q3 FY2025 raises valuation mismatch worries. 3. Free cash flow declines from AI CAPEX spending affect investment returns. 4. Estimated fair value at ~$376.5 suggests ~10% downside for the stock.

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FAQ

Why Bearish?

Disappointing cloud growth and guidance shortfall could hinder investor confidence.

How important is it?

Analyst downgrades and guidance can significantly affect MSFT's stock performance.

Why Short Term?

Immediate market reactions are influenced by earnings releases and guidance adjustments.

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