Microsoft Corporation (MSFT) experienced significant stock movement this week, driven by a major partnership announcement and regulatory scrutiny. On Wednesday, Microsoft's stock rose over 2.5% following the announcement of a collaboration with SpaceX's Starlink satellite internet service to expand connectivity in Kenya.
The partnership will establish 450 "community hubs" across Kenya, combining Starlink's low-Earth orbit satellite connectivity with Microsoft's AI tools, cloud infrastructure, and local skills training programs. This initiative is part of Microsoft's "AI-ready communities" push, which aims to ensure people not only get online but can effectively use AI-powered tools. Microsoft Chief Sustainability Officer Melanie Nakagawa described the approach as combining satellite connectivity with "community-based deployment models and local ecosystem partnerships."
Microsoft has already surpassed its connectivity goals, having connected more than 299 million people globally—exceeding its target of 250 million by the end of 2025. This includes over 124 million people across Africa. The company's 2025 AI Diffusion Report highlights the connectivity gap, noting that in Zambia, generative AI adoption sits at 12% nationally but jumps to 34% among people with internet access.
Simultaneously, Microsoft faces regulatory challenges in Japan, where the country's Fair Trade Commission conducted a raid on Microsoft Japan offices. The investigation focuses on whether the company restricted Azure customers from using competing cloud services. Microsoft Japan confirmed it is "fully cooperating with the JFTC," with the U.S. headquarters expected to provide additional clarification.
The regulatory probe underscores growing global scrutiny of cloud giants, particularly around contract terms, customer "lock-in" practices, and pricing strategies. Azure remains central to Microsoft's business, forming the backbone of its cloud services pitch to enterprises worldwide.
Additional factors influencing Microsoft's stock include broader tech market momentum, with the Nasdaq Composite rising 1.3% as investors anticipated Nvidia's earnings report. Microsoft also participated in a $1.2 billion funding round for British autonomous driving startup Wayve and announced new AI-driven telecom tools during Mobile World Congress week.
Wall Street analysts maintain a Strong Buy consensus on MSFT based on 33 Buy ratings and three Holds over the past three months, with an average price target of $594.02. However, the stock remains down about 2.68% over the past year and nearly 28.5% from its October record close of $542.07.
