Tepper News & Analysis

Microsoft (MSFT) Q3 CapEx Rises 84% to $31 Billion Amid Insider Sales

David Tepper's Appaloosa Management reduced its Microsoft (MSFT) stake by approximately 82% in the first quarter of 2026. Contrarily, Bill Ackman initiated a $2 billion position in MSFT in February, despite shares being down 17% year to date. In Q3, Microsoft reported capital expenditures (capex) increased by 84% to $31 billion, with free cash flow down 3%. Microsoft's quarterly earnings showed a profit of $4.27 per share, exceeding the $4.07 expected, and the stock is trading at a forward P/E of 21 with a target price of $560.95.