$MSFT deep dive: beat on everything with Azure up 48% and the stock barely moved. I think it's a buy

$MSFT beat on everything last night and the stock barely moved. I think it's a buy.

FY27 Q1: revenue $92.3B (+19%) with an operating margin near 50%. Azure grew 48% to $33.2B and the commercial backlog jumped 73% to $677B. Next quarter Azure is guided to 49% to 50% growth.

The catch: free cash flow fell 27% to $18.6B as capex hit $45.2B. Capex is headed above $50B next quarter and today @Microsoft is selling its first bonds since 2017. At about 30x earnings it costs more than Amazon or Meta.

Chart: price is above the 20, 50 and 200 day averages with RSI near 58. My Elliott read is five waves up from $349 to $551 and now an ABC pullback. If C equals A it lands near $505 right on the 23.6% retrace. The wall is $551 to $554.

My plan: half here and add between $505 and $515. A close above $554 is a breakout. A close below $486 or an Azure guide under 45% flips me to hold.

Not financial advice.

Everyone is borrowing for AI now. Microsoft just does it with a AAA rating.

The setup in two frames: a 48% Azure quarter that barely moved the stock and my Elliott Wave levels ($515.70 Wave A low, $505 C target, $486 invalidation, $551 to $554 wall). Not financial advice. I'm buying half here and saving the rest for $505 to $515.

Sources: SEC 8 K Exhibit 99.1 · Microsoft Source press release · Microsoft IR press release · CNBC, Oct 28. Azure $33.17B; EPS $4.89 vs $4.73 LSEG; revenue $92.28B vs $90.69B; capex incl. finance leases $45.2B; FCF · Reuters via StreetInsider. Azure $33.17B vs Visible Alpha $32.84B; FCF $18.6B; capex $45.2B vs $34.9B a year ago; guide; · Reuters via RTE same figures

Not financial advice. For informational and educational purposes only.