- Brad Smith sold 38,500 shares of Microsoft on November 3, 2025, totaling nearly $20 million.
- Microsoft reported $77.67 billion revenue and $4.13 earnings per share in Q1, beating expectations.
- Strong Artificial Intelligence (AI) spending of $35 billion and possible increases have pressured the stock, causing a decline.
- The stock price is trading below $500 but analysts forecast a potential rise to about $633 in the next year.
- Dividend of $0.91 per share was declared despite recent share price declines.
On Monday, November 3, 2025, Microsoft Vice Chair and President Brad Smith sold 38,500 shares in two transactions. The first sale involved 30,411 shares at $518.49 each, while the second transaction was for 8,089 shares at $519.21 apiece. The total value of these sales was approximately $19.97 million, occurring after the stock dropped 5% following the company’s earnings call.
In its first quarter, Microsoft delivered $77.67 billion in revenue and $4.13 earnings per share, surpassing analyst expectations. Despite this strong financial performance, concerns over the company’s artificial intelligence (AI) investments weighed on the stock. The firm is spending $35 billion on AI initiatives and indicated that this spending could increase further.
The company also announced dividends of $0.91 per share. However, shares have continued to slide, falling close to 7% in value since Monday. The rising capital expenditures, or capex, related to AI projects are seen as a factor behind the price decline. Bob Lang, Chief Options Analyst at Explosive Options, described the capex figure as “a little bit worrisome”, linking it to the downward pressure on the stock, according to Reuters.
The current stock price is hovering near $497, below the $500 mark. According to TipRanks, all 34 Wall Street analysts have given Microsoft a “buy” rating. Their average price target for the next 12 months is $633, with forecasts ranging from $540 to $700, indicating a potential 27% increase from the current price.
An investment of $1,000 based on this average target could yield approximately $1,270 if the forecast holds true.
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