Microsoft Retail Buzz Builds After Red Sea Cable Cut Disrupts Azure Services, Company Says Network Traffic 'Not Impacted'

Microsoft Corp. (MSFT) stock was among the top five equity trending tickers on Stocktwits early Monday as users discussed the issue that plagued the company's Azure services after multiple international cables in the Red Sea were cut.

On Monday, the company said,“Starting at 05:45 UTC on 06 September 2025, network traffic traversing through the Middle East may experience increased latency due to undersea fiber cuts in the Red Sea.”

“Network traffic is not interrupted as Microsoft has rerouted traffic through alternate network paths. We do expect higher latency on some traffic that previously traversed through the Middle East.”

The company also clarified that the network traffic that does not traverse through the Middle East was not impacted.“We'll continue to provide daily updates, or sooner if conditions change,” it added.

The Satya Nadella-led company did not disclose reasons for the damage to the udersea cables.

Microsoft's Azure is the second biggest public cloud computing provider after Amazon's AWS. 

A Bloomberg report said Microsoft's engineering teams were working to mitigate the situation. According to the report, the Red Sea serves as a crucial telecommunications route, connecting Europe, Africa, and Asia via Egypt.  

It becomes difficult to repair the undersea cables in the region, primarily due to Yemen's Houthis continuing to attack vessels. 

On Stocktwits, retail sentiment toward Microsoft stock remained 'bullish' (59/100) as of early Monday, with the message volume at 'high' levels.

Microsoft stock, which shed 2.55% on Friday, was seen rising nearly half a percentage point to $497.35 in overnight trading.

The stock is up 18% this year, with the Koyfin-compiled consensus analysts' price target at $613.89, implying over 24% upside from Friday's close.

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