Microsoft (MSFT) Stock Rises 29% in a Month While Rivals Burn Through Cash
TLDR
- Microsoft is the only major US hyperscaler with positive free cash flow, closing Q4 FY2026 with a $19.6 billion cash balance
- Alphabet’s free cash flow turned negative for the first time since its 2004 IPO, burning $5.9 billion in Q2 2026
- Amazon’s trailing 12-month free cash flow swung to negative $7.6 billion despite AWS posting $42.2 billion in Q2 revenue
- Citi raised its MSFT price target from $570 to $600 after Azure revenue surged 43% and stock touched $500
- Bank of America forecasts aggregate hyperscaler free cash flow will swing from positive $180 billion in 2025 to negative $64 billion in 2026
Microsoft (MSFT) stock briefly hit $501 on Thursday, its first time at that level in 2026, before closing at $499. Citi followed up by raising its price target on MSFT from $570 to $600, slapping a strong buy rating on the stock.
That 29% gain over the past month is backed by a financial story that is separating Microsoft from its cloud peers. While Alphabet, Amazon, and Meta are all burning cash to fund AI infrastructure, Microsoft is the only one of the four major US hyperscalers still generating positive free cash flow.
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