Microsoft Corp.’s stock was curiously holding up amid a sharp selloff in the broader market due to a fresh escalation in the U.S.-Iran conflict.
Microsoft shares rose 0.2% in overnight trading ahead of Monday, bucking declines across Big Tech, chip and software stocks and prompting a wave of bullish commentary from retail traders on Stocktwits.
“$MSFT is the safest earnings play at the moment $450 08/07 looks good,” a trader , while another , “$MSFT chips down. SaaS rallies seems to still be the norm.”
Microsoft was the Magnificent Seven stock in the first half of 2026, a period when chip stocks soared remarkably. As July kicked off, there seems to be an early reversal with investor funds moving back into the Big Tech names.
“This stock is sh*t...but no matter how bad the boomer investors are, nor how atrocious Satya Nadella (their idiodic prideful) CEO is...this stock has at least 15% upside before earnings,” another trader posted. “Stay the course!”
On Stocktwits, however, the retail sentiment for MSFT was ‘bearish’ as of early Monday, unchanged since the middle of last week.
Traders Set Up For MSFT’s Q4 Results
Microsoft is scheduled to report its fiscal fourth quarter earnings on July 29. Analysts expect revenue to rise 15% to $87.66 billion and adjusted profit to increase 16% to $4.24 per share, according to analysts' estimates from Koyfin.
Currently, 53 out of 56 analysts rate MSFT ‘Buy’ or higher, and three rate it ‘Hold,’ per Koyfin data. Their average price target of $559.59 implies a 45% upside from the stock’s last close.
Fresh US-Iran Escalation Jolts Markets
The U.S. launched several waves of strikes on Iran on Sunday over an Iranian attack on a container ship in the Strait of Hormuz earlier in the weekend.
Iran responded with attacks on Bahrain, Kuwait, Qatar, Jordan and Oman – regions hosting U.S. military forces – and said that the latest U.S. strikes have “rendered futile” all the diplomatic efforts of the last few months.
The U.S. and Iran are nearing the midpoint of a 60-day truce meant to pave the way for peace talks, but fresh attacks have instead raised fears the war could reignite.