Microsoft shares are on pace to close at a second record high in as many days Friday, but analysts say there’s still a lot of upside left on the table for the world’s most valuable company.

By the close, the Dow Jones Industrial Average fell 0.25% to 42,319.74 points; the S&P 500 dropped 0.53% to 5,939.30 points; and the Nasdaq Composite declined 0.83% to 19,298.45 points. Tesla was one ...