Microsoft ends one of the last ways to buy VMware without big bundles

Microsoft (MSFT) shares rose 0.6% to $484.30 as Treasury yields fell. The company reported $90B revenue, up 18%, with Azure cloud revenue up 43% and a $678B backlog. Operating income increased 18% to $40.6B. Microsoft's valuation is 15.86% below GF Value estimate.

Microsoft's Xbox division plans to cut 3,200 jobs by mid-2027, with 1,600 already eliminated. Unionized employees protested, citing frequent layoffs since Microsoft's acquisition of Bethesda. Developers claim layoffs harm game quality and institutional knowledge. The CWA filed an unfair labor practice complaint against Microsoft.

IREN Limited's stock fell 6.46% to $42.00 despite delivering its first AI data center to Microsoft. The 50MW Horizon 1 deployment is part of a $9.7B contract with Microsoft through 2031. The decline coincided with a broader pullback in AI-infrastructure and high-beta tech stocks, highlighting the company's sensitivity to sector sentiment. IREN's shares have high volatility, with a beta of 4.2, and remain exposed to both Bitcoin and AI market fluctuations.

Microsoft issued a patch for a critical Copilot vulnerability in the personal version, nearly eight months after confirmation, according to Microsoft and Varonis. Varonis reported the CoSnitch flaw, involving auto-execution, data exfiltration, and persistent memory poisoning. Microsoft said customers are protected and no action is needed.

Microsoft faces setbacks in China as authorities accelerate plans to remove a customized version of Windows 10 from state-linked organizations, citing data-security concerns. The move aligns with China's push for domestic tech alternatives. Microsoft reported $90B in fiscal Q4 revenue, with cloud and AI businesses driving growth. Investors watch for potential expansion of localization efforts into Azure and AI services.

China is removing a customized version of Windows 10 from government systems earlier than planned, citing data-security concerns. The move supports China's push to replace foreign tech with domestic alternatives. Microsoft stated it was unaware of any security incidents. The OS, developed by C&M Information Technologies, was set to retire in 2027 but is now being uninstalled ahead of schedule.