A Motley Fool contributor says Microsoft is the Magnificent Seven stock he would avoid or sell, despite revenue rising 18% year over year and Azure growing 43% in the June quarter. Concerns include uncertain AI costs, Copilot uptake and weakness elsewhere.
The article says Microsoft expects AI-business revenue to grow 45% in the quarter ending this month and has $678 billion in contracted business awaiting recognition as revenue. The writer warns that scarce, increasingly expensive data-center hardware could make delivering that business costly.
Microsoft's professional Copilot had 30 million paid users, with subscriptions priced at $21–$38 a month, but the article says enterprises are questioning its value against cheaper or free alternatives. It also notes Xbox revenue fell 10% in the latest quarter after dropping 5% in the previous quarter.
