Stifel downgraded Microsoft’s rating from Buy to Hold, citing concerns about Azure growth and aggressive AI spending leading to potential operating-margin headwinds. Despite this, most analysts have reiterated their ratings, with some seeing the recent stock correction as a buying opportunity. The market is reassessing MSFT due to slowed cloud sales growth and elevated capital expenditures, leading to a recent 14% stock correction.
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Street Reassesses Microsoft (MSFT) Amid Azure Growth and Capex Concerns
Stifel downgraded Microsoft’s rating from Buy to Hold, citing concerns about Azure growth and aggressive AI spending leading to potential operating-margin headwinds. Despite this, most analysts have reiterated their ratings, with some seeing the recent stock correction as a buying opportunity. The market is reassessing MSFT due to slowed cloud sales growth and elevated capital expenditures, leading to a recent 14% stock correction.