Microsoft CEO Satya Nadella speaks to guests at an Economic Club of Chicago dinner on October 3, 2018 in Chicago, Illinois.

Microsoft slid 2% on Wednesday ahead of its first-quarter earnings report, due after the closing bell.

The drop came amid broader weakness in the tech sector, with the Nasdaq tumbling more 1.7%, and after Texas Instruments slashed its forecast, AT&T reported weak DirecTV subscriber results, and chipmakers were hit hard ahead of earnings.

As for Microsoft, investors have been worried about sales of its Xbox console amid competition from Nintendo‘s first-party titles, as well as from Google’s new video-game streaming service that allows users to play high-quality video games through their Chrome browser.

But the Morgan Stanley analyst Keith Weiss is bullish on the tech giant, saying Microsoft’s compelling content libraries can catch up with Xbox’s exclusive game supply. He also said he thinks the company can build the capability to stream games to a broad set of devices, including consoles, PCs, and mobile phones.

Microsoft’s building of a first-party content library “well-positions Microsoft for the coming evolutions in gaming, subscription pricing, and cloud streaming,” Weiss said in a recent note to clients.

He has an “overweight” position and a $130 price target — 23% above where shares were trading on Wednesday.

Analysts surveyed by Bloomberg expect Microsoft to report earnings of $0.96 a share on revenue of $27.90 billion. Looking at the full year, Wall Street analysts are expecting a profit of $4.27 per share and revenue of $122.83 billion.

Shares are up 24% this year.

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