LinkedIn Just Cut Its Israel R&D Team. Microsoft Stock Investors Shouldn’t Sweat the Layoffs.
Microsoft has been cutting costs while investing heavily in AI, as evidenced by the recent layoffs at LinkedIn's Israel R&D center. The Tel Aviv office, opened in 2022 following Microsoft's acquisition of analytics startup Oribi, employed around 50 people. Despite the downsizing, LinkedIn's revenue grew by 12% year-over-year during Microsoft's latest fiscal quarter.
The company reported strong earnings, with Microsoft Cloud revenues increasing by 27% to $59.3 billion. Microsoft remains optimistic about its prospects, with Wall Street analysts maintaining a "Strong Buy" rating and an average price target of $554.76, indicating a potential 14% upside from its current price of $485.
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