Good morning. QQQs -25bps to start the day as things were quiet on the macro front overnight ahead of Trump’s meeting with Xi tomorrow.
We get analyst days from OKTA & P today, alongside META’s Connect, where Zuck kicks things off with the keynote at 7pm ET.
In Tech, main focus continues to be impact of Muse and agentic consumer harnesses and what that means for names across the sector. Semis -1.3% early while Software/Internet flat today. Overnight, Asia mixed: Hang Seng -1.01%, HSCEI -1.06%, SHCOMP -0.39%, Shenzhen -0.5%, Taiwan TAIEX +0.75%, Korea KOSPI +0.9%.
Let’s right to it…
MSFT: Stifel upgrades to Buy/$575, sees Azure + M365 AI monetization reaccelerating as capacity efficiency improves
Stifel says Azure upside should increasingly come from better infrastructure efficiency, new capacity coming online and rising OpenAI-related revenue, with demand still outstripping supply and recent dock-to-live improvements freeing capacity faster. Stifel also highlights M365 Copilot seats at ~30M in 4Q, +10M q/q, plus growing GitHub consumption as support for sustained mid/high-teens M365 growth. Stifel upgrades to Buy from Hold and raises PT to $575 from $530.
Anthropic: Released Opus 5.5 yesterday, cheaper and better than Fable
