u/Organic_Collar_2846 ·
Reddit — r/ValueInvesting
· June 12, 2026 at 12:49
· ⬆ 15 pts
· 💬 42 comments
| View on Reddit ↗
AI Summary
Summary
The post compares Microsoft to past dips in Google and Amazon, arguing that MSFT is similarly misunderstood regarding its AI monetization and cloud business.
The author’s thesis: Dropping the OpenAI contract frees low-margin cloud capacity, new products (Agent 365) and enterprise deals will drive better results starting this quarter.
Quality assessment: A speculative but reasoned opinion piece, not deep DD; relies on analogy and qualitative catalysts.
Score15
Comments42
Upvote %76%
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What are your thoughts.
Is msft experiencing the same phase as google (when people thought search business is done or they are losing the ai race). Amazon went through this when aws numbers were slightly down.
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I think since they dropped the contract with open ai, they have freed lots of cloud capacity and can sell them at a better margin . They are coming with agent 365. Few new deals to test the impact of ai they offer vs how it's actually helping (KPMG, mayo health, car dealerships, etc)
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I think it will post better numbers starting this quarter and going forward.
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Share your thoughts.
Microsoft dropped its OpenAI contract, freeing cloud capacity that can now be sold at higher margins; new AI products (Agent 365) and enterprise deals (KPMG, Mayo Clinic, car dealerships) are being tested. If these initiatives translate into better financials, Microsoft’s current valuation may not reflect the upcoming earnings inflection, creating a buying opportunity. The author expects improved earnings starting this quarter, making MSFT a long candidate as the market reprices the AI/cloud narrative. Cloud competition from AWS/GCP; AI adoption slower than expected; margin expansion fails to materialize; macro slowdown hurting enterprise spending.
This Reddit post, published June 12, 2026,
features u/Organic_Collar_2846
discussing MSFT.
1 trade idea extracted by AI with direction and confidence scoring.