Wall Street analyst and EMJ Capital founder Eric Jackson claimed recently that he reviewed 84 earnings calls of Microsoft dating back to the last 20 years from CEO’s Steve Ballmer to Satya Nadella. The analyst, who remains bullish on Microsoft stock, opined that the recent sell-off is a misunderstanding due to a disconnect between the company’s prospects and the investor community.

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Jackson explained that Satya Nadella is a “cash machine” CEO, and his statements were always backed by the robust numbers. This helped Microsoft stock scale up the charts, and the statements and the numbers eclipsed perfectly. From 2014 to 2025, Nadella spoke after the immediate financial results with the backing of the earnings calls.

However, this time around and for the first time, he stressed that the CEO spoke ahead of the numbers. Jackson claimed that Microsoft is deliberately slowing down its cloud service Azure to prioritize its AI spending, which inadvertently hurt MSFT stock’s prospects. There is some truth to his claim, as Amy Hood, the CFO of Microsoft, recently said that if the company’s GPUs went to Azure, the growth would have been 40% instead of 38%.

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The market listened to Hood’s statements, leading to a sharp drop of 6% on April 4. Jackson now argues that the management’s statements are what’s leading to Microsoft’s stock fall. He stressed that the management is confident in the company’s AI prospects, which is a sign of strength. Even the CEO is confident in their AI position that they had to limit their cloud services, he explained.

In conclusion, Wall Street is punishing Microsoft’s stock for statements favoring AI vs cloud services, said Jackson. This should not be seen as a shortfall but a strategic choice, he stressed. He also explained that Nadella is more calculative than thought, and will get the numbers from AI.