Microsoft stock hovers near $500 as AI focus and job cuts fuel buying momentum
Microsoft stock approaches $500 after restructuring plan boosts confidence
Microsoft Corp. stock price started this week on a firm footing after a strong rebound before the U.S. Independence Day holiday on July 3.
The stock extended its recovery from a six-day low of $488.8 to retest the important $500 psychological level. That day, Microsoft closed at $498.8, marking a 1.55% gain. This gain was notable as it surpassed the daily range seen in the previous seven sessions.
Highlights
-Microsoft's premarket price approaches $500 after restructuring plan boosts investor confidence
-Strong Azure and Office growth forecast supports bullish bias going into second half of 2025
-Key $500 resistance remains critical as traders assess breakout potential after holiday bounce
A key catalyst behind this surge was the announcement of 9,000 job cuts as part of Microsoft’s effort to simplify its organizational structure and focus more on artificial intelligence initiatives. The restructuring signals a drive toward operational efficiency and sharper focus on growth areas such as Azure and AI solutions.
Microsoft stock price dynamics (May - July 2025)
Investors responded positively to this strategy shift, pushing the stock higher. The volume spike during a single four-hour window on July 3 exceeded the combined four-hour volume across the previous week, indicating strong buying interest during that move. However, overall daily volume stayed lower than the prior seven days, suggesting some traders adopted a wait-and-see approach ahead of the holiday break.
Microsoft fundamentals shine with $26B net income and 14% projected revenue growth
As of today, July 7, the first trading session after the holiday, Microsoft stock is trading at $499.3 in premarket action, nearly 1% above last week's close. Investors are closely watching whether the stock can secure a sustained move above $500, a level that has acted as a ceiling over the past two weeks. The price has hovered between $490 and $500 for the last six days, suggesting a period of consolidation before a possible breakout.
On the fundamental side, Microsoft continues to deliver strong financial results despite workforce reductions. In the March quarter, the company reported nearly $26 billion in net income on $70 billion in revenue, exceeding analyst expectations. Management expects revenue growth of about 14% in the June quarter, supported mainly by Azure and Office segments. The robust financial performance provides a solid foundation for further gains, especially as demand for enterprise and government AI spending intensifies.
Looking ahead, market participants will focus on whether Microsoft can decisively clear the $500 psychological barrier. A successful move above this level may open the door to fresh highs and fuel broader tech optimism in the second half of 2025. Conversely, failure to breach this level could keep the stock in a tight consolidation range, setting the stage for a retest of the $490 support.
Microsoft stock surged to a record $500 in June, driven by strong AI optimism. Price later tested the 20 EMA support and aimed for $485 after profit-taking pulled it lower.
