Microsoft Set for Worst Quarter Since 2008 as AI Fears Converge
finance.yahoo.com
(Bloomberg) -- Microsoft Corp. is at the intersection of two troubling trends roiling the technology sector, which has the stock on track for its worst quarterly performance since the global financial crisis two decades ago.First, the software giant is doubling down on capital expenditures as Wall Street increasingly asks when investments in artificial intelligence infrastructure will produce more dramatic payoffs in revenue growth. And second, investors are selling software stocks over fears th
  • jtrek@startrek.websiteEnglish
    15·
    2 hours ago

    Maybe they could focus on delivering quality products that customers want, instead of investing all their time and effort into expensive AI widgets people don’t.

  • jubilationtcornpone@sh.itjust.worksEnglish
    15·
    2 hours ago

    This drawdown has sparked a debate about the “Magnificent Seven” member: Is Microsoft stock a falling knife, or has the market overreacted, presenting a rare opportunity to buy a preeminent artificial intelligence (AI) stock at a discount?

    First, “the market” overreacts about everything. Not surprising given that stock price volitility is mostly driven by speculation.

    Second, who writes this crap? Anyone who thinks of Microsoft as an “AI stock” is clueless. The majority of Microsoft’s revenue comes from “services”, a big chunk of which is derived from subscriptions for Azure, Office 365, and other hosted solutions.

    Microsoft has been racing to cram “AI” into as many areas as possible. Probably in an attempt to justify their substantial R&D and capital expenditures. But calling them an “AI stock” is insane considering “AI” is not their core business or even a profitable part of their business.

    • porcoesphino@mander.xyzEnglish
      1·
      21 minutes ago

      Isn’t a decent amount of trading vibes / meme based? At least, a lot of crypto and arguably Tesla is. For those traders, isn’t Microsoft an AI stock? At least some of the genAI stock valuations are from a subset of people thinking that the singularity is coming and that the first of these companies to do it will boom, aren’t they? And isn’t that the target audience for this sort of reporting?

  • disorderly@lemmy.worldEnglish
    13·
    3 hours ago

    GitHub is teetering on one 9 over an entire quarter. There are serious, systemic problems in Microsoft’s shop.

    • Lydon_Feen@lemmy.worldEnglish
      25·
      3 hours ago

      Or maybe injecting even more AI into their products? People seem to looooove that.

      Or maybe making an even shittier OS by firing more engineers, and replace them with terrible AI slop code?