Microsoft Lands $170M Air Force Cloud Deal, But Recent Stock Sell-Off Keeps Investors On Edge

• Microsoft will provide Azure support under the U.S. Air Force’s Cloud One Program.
• Microsoft posted 40% in its cloud-computing business in the September quarter, outpacing Wall Street’s expectations at the time.
• MSFT stock is down about 20% from its October peak, prompting analysts to cut price targets.

Microsoft Corp. has secured a $170 million cloud contract for U.S. defence services, the U.S. Department of War announced on Wednesday. 

The contract involves Microsoft offering its cloud services for the U.S. Air Force’s Cloud One program.

Retail Investors, Brokerages Temper Expectations As Stock Slides

Although Microsoft's cloud engine, Azure, is humming along smoothly, thanks to surging AI demand, investors are growing concerned by a sharp slide in shares.

MSFT stock has declined in six of the last seven trading sessions, and is down about 20% from a recent peak on Oct. 28. It fell 2.3% on Wednesday, even as the broader market rebounded amid U.S. President Donald Trump’s reversal on a plan to impose Greenland-linked tariffs on European countries. 

That’s caused Microsoft's market capitalization to slip to $3.3 trillion, from over $4 trillion in October.

Scores of brokerages, including Citigroup, Mizuho, and TD Cowen, have lowered their price targets on Microsoft stock in the last few days.

On Stocktwits, the retail sentiment for MSFT has consistently fallen since last Friday, hovering in the ‘bullish’ as of late Wednesday.

Still, analysts have an average target of $622.2, according to Koyfin, implying a 40% from the stock’s last close. They overwhelmingly recommend accumulating the stock (56/58 recommend ‘Buy’ or higher, with the rest advising ‘Hold’).

Cloud One Contract Details

The U.S. Air Force’s Cloud One is an enterprise-level cloud computing platform and service, managed by the Department of the Air Force, for communication and cloud capabilities supporting mission applications across the U.S. military. Amazon Web Services, Google Cloud, and Oracle are also vendors to the program.

Microsoft’s work in the program will be carried out at its designated facilities across the U.S. and is expected to conclude by Dec. 7, 2028, according to the official statement.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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