Microsoft's stocks (MSFT) experienced a significant downturn, dropping around
10%, triggering a negative investor sentiment despite
strong earnings recorded. This historic dip is largely attributed to
questions revolving around Microsoft's investments in
Artificial Intelligence (AI) and concerns on slowing cloud growth. In particular, analysts pointed to
OpenAI as a $250 Billion problem for the corporation. Various Street analysts cut Microsoft's
price targets as financial institutions, including JPMorgan Chase and Deutsche Bank, issued pessimistic forecasts for Microsoftβs stock. The corporation's higher than expected Capital Expenditure (CapEx) resulted in a crash in their
free cash flow which may have led to the dip. However, some industry insiders view this drawdown as a
'Gift', implying a potential
buying opportunity. Cloud revenue, while topping
$50 billion, has not been sufficient to boost stocks, with Wall Street remaining nervous about future outlooks for Azure and AI expenditure. However, the company's backlog is growing, indicating some potential value in the future.
Microsoft Stocks MSFT News Analytics from Mon, 12 Jan 2026 08:00:00 GMT to Sat, 31 Jan 2026 23:36:00 GMT -
Rating -5
- Innovation -4
- Information 6
- Rumor -2
