ubs analysts are warning about additional weakness in microsoft s msft key cloud computing while morgan stanley issued a rosy multiyear outlook on humana hum heres a look at both notes and how we feel about the stocks which are both in the clubs portfolio msft 1y mountain microsofts stock performance over the past 12 months the news ubs is warning that microsoft could issue worsethanexpected guidance for its azure cloud unit later this month after it reports fiscal 2023 thirdquarter results ahead of all that ubs lowered its own azuze revenue growth estimates for microsofts fourthquarter and upcoming fiscal year 2024 in a note to clients monday night ubs said it now expects microsofts cloud computing unit to grow revenue by 24 in its q4 which ends june 30 due to a weird financial calendar thats down from prior estimates of 25 for microsofts fullyear 2024 which actually runs from july 2023 to june 2024 ubs now sees azure revenue growth of 20 down from 216 ubs said it believes softer demand for cloud computing services will be deeper and last longer than most think citing conversations with about 20 amazon web services and azure customers on the other hand analysts at ubs acknowledged microsofts commentary around plans to monetize its openai investment saying it could be as impactful to the stock as the reported financials ubs has a neutral rating and 12month price target of 275 on microsoft shares the stock traded around 283 per share tuesday the clubs take a general slowdown in cloud computing spending is hardly a surprise to technology investors after all azures growth rate has slowed in recent prints 31 in the companys fiscal 2023 second quarter compared with 35 and 40 in the prior two quarters ubs said its comfortable with estimated q3 azure growth of 30 to 31 likewise marketleading amazon web services part of fellow club holding amazon amzn has seen its growth moderate materially slowing to 20 in the three months ended dec 31 what ubs note suggests is that in the near term azures growth could slow even further in the coming quarters and reach a trajectory similar to aws while we understand cloud computing is vulnerable to a slowdown we remain longterm believers in microsoft and its important to remember nowadays investors are paying closer attention to the bottom lines of technology giants topline growth isnt the singular focus anymore so while azure growth may continue to moderate microsofts earnings per share eps may be more resilient as the companys expensereduction strategy which included layoffs  filters through the organization hum 1y mountain humanas 12 month stock performance the news club holding humana is the strongest earnings growth story in the managed care industry morgan stanley equity analysts told clients in a note tuesday the firm which has a buyequivalent rating on humana raised its price target on the stock to 637 per share from 620 representing more than 20 upside from its monday close analysts rolled out their fullyear 2025 eps forecast of 40 which they said is the highest on wall street the company itself is projecting earnings of 37 per share for 2025 morgan stanleys favorable multiyear outlook is rooted in the strength of humanas medicare advantage offering humana has raised membership growth guidance four times since september which analysts argue should significantly strengthen the companys earnings power in the coming years additionally they said humanas 1 billion value creation program is going better than expected opening the door for even more upside to managements 2025 earnings target the clubs take weve been fans of humana for more than a year now believing management is capable of turning the ship around after a rough 2022 medicare advantage enrollment and recapturing lost market share the companys recent results and guidance boosts have confirmed our thesis is playing out were glad to see morgan stanley analysts expect this to continue in the future hum shares are only about 7 away from their alltime intraday high of 57130 which came back in early november one thing to keep in mind in the near term humanas managed care peer unitedhealth group unh releases earnings friday morning and the quality of unhs print could influence sentiment around humana ahead of its own report april 26 the club prefers humana over dow stock unitedhealth because of its turnaroundstory characteristics and the fact its more of a pureplay stock on medicare advantage with investors worried about the us economy weakening and this years regulatory hurdles largely behind the sector humana is the kind of defensive stock that shines in moments like this jim cramers charitable trust is long msft amzn and hum see here for a full list of the stocks as a subscriber to the cnbc investing club with jim cramer you will receive a trade alert before jim makes a trade jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trusts portfolio if jim has talked about a stock on cnbc tv he waits 72 hours after issuing the trade alert before executing the trade the above investing club information is subject to our terms and conditions and privacy policy  together with our disclaimer  no fiduciary obligation or duty exists or is created by virtue of your receipt of any information provided in connection with the investing club no specific outcome or profit is guaranteed