Microsoft Corp. shares fell 17% in June, marking the company’s worst monthly performance since December 2000, during the height of the dot-com crash, Bloomberg reports.<\/p>\n
The decline wiped more than $570 billion off Microsoft’s market capitalization, although the stock recovered part of its losses toward the end of the week.<\/p>\n
Investors are becoming increasingly concerned about Microsoft’s massive spending on artificial intelligence infrastructure. At the same time, the market fears that the rapid advancement of AI could reduce demand for the company’s traditional productivity software, including Word and Excel.<\/p>\n
“Microsoft is being hit from both sides \u2014 investors are worried not only about the enormous AI investments but also about the risk that AI could eventually disrupt the company’s own core business,” said Jack Ablin, Chief Investment Officer at Cresset Wealth Advisors.<\/p>\n
Additional pressure came from Azure’s latest financial results, as the cloud platform’s growth fell short of market expectations. Microsoft also projected capital expenditures of $190 billion by the end of the year, exceeding analysts’ forecasts. According to Brad Reback, an analyst at Stifel, such heavy investments could weigh on the company’s profitability.<\/p>\n
Despite the sell-off, some investors view the current decline as a buying opportunity. Notably, renowned investor Michael Burry has purchased long-term call options on Microsoft shares, betting on their future appreciation.<\/p>\n
Keith Fitz-Gerald, manager of the Fitz-Gerald Must Have Portfolio ETF, also remains optimistic about Microsoft’s outlook.<\/p>\n
“The current price is very close to an epic buying opportunity. Once AI spending begins translating into profits, the stock could take off like a rocket,” he said, while acknowledging that uncertainty surrounding the future development of artificial intelligence remains.<\/p>\n
Despite the recent decline in its share price, Bloomberg analysts forecast that Microsoft’s revenue will grow by approximately 17% in the current fiscal year, with annual growth potentially accelerating to 20% by 2029.<\/p>\n","protected":false},"featured_media":151844,"menu_order":0,"template":"","newscat":[9],"newstag":[],"issues":[],"class_list":["post-151843","news","type-news","status-publish","has-post-thumbnail","hentry","newscat-novosti"],"_links":{"self":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/news\/151843","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/types\/news"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/media\/151844"}],"wp:attachment":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/media?parent=151843"}],"wp:term":[{"taxonomy":"newscat","embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/newscat?post=151843"},{"taxonomy":"newstag","embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/newstag?post=151843"},{"taxonomy":"issues","embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/issues?post=151843"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}