Billionaire Investor Reduces Microsoft Stake Amid Cloud Growth Concerns

Activist investor Dan Loeb’s Third Point LLC slashed its stake in Microsoft Corporation (NASDAQ:MSFT) by 16% in the fourth quarter of 2025.

According to a recent 13F filing, reflecting his holdings as of Dec. 31, 2025, Third Point trimmed its stake in the major software company to 925,000 from 1,100,000 in the third quarter of 2025.

Second-Quarter Earnings Release

In January, Microsoft reported second-quarter revenue of $81.3 billion, up 21% year-over-year, beating a Street consensus estimate of $80.25 billion. The company reported non-GAAP earnings per share of $4.14, beating a Street consensus estimate of $3.86.

Looking ahead, Microsoft forecasts fiscal third-quarter revenue in the range of $80.65 billion to $81.75 billion, with foreign exchange expected to add roughly three percentage points to year-over-year growth.

Analyst View

Several analysts lowered their price targets after the company beat revenue and earnings-per-share estimates in the second quarter.

• JPMorgan analyst Mark Murphy maintained an Overweight rating on Microsoft and lowered the price forecast from $575 to $550.
• Wedbush analyst Dan Ives maintained an Outperform rating and slashed the price forecast from $625 to $575.
• KeyBanc analyst Jackson Ader maintained an Overweight rating and reduced the price forecast from $630 to $600.
• Goldman Sachs analyst Gabriela Borges maintained ...

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