VaasBlock published an analysis on January 04, 2026, suggesting Microsoft faces pressure on its core Windows and Office businesses as switching costs decline. The report posits that Microsoft's 2026 survival hinges on Azure becoming a neutral infrastructure layer for global AI deployment, requiring faster execution and deeper cuts.
The analysis projects a bull case for MSFT stock between $520 and $600 if it successfully pivots to being the global enterprise AI backbone. It also cautions about potential January 2026 layoffs as the company flattens its structure to increase speed.