11:55 AM EDT, 07/02/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

MSFT says it is laying off more than 9,000 employees, or nearly 4% of its workforce.This news comes about two months after announcing a 6,000-headcount reduction, and we expect the cuts to be broad-based. MSFT is being nimbler with employee headcount additions and has kept its workforce flattish over the last three years (note that this includes the digestion of Activision, which had about 13,000 employees), while revenue has increased about 40%. We think MSFT's focus on spending will continue to shift towards higher capex spend (+$80B in CY 25, nearly tripling in three years) in '26 and beyond, although more modestly, with an emphasis on efficiencies needed to offset its more capital-intensive approach (e.g., greater fixed costs/higher depreciation expenses). We think this is a great time for long-term investors, as the early pain from scaling up capex spend is largely in the rearview mirror, with AI revenue/FCF growth set to sharply surpass capex growth and greater AI efficiencies to aid margin expansion.