Microsoft Stock Value Drops $350 Billion in Eight Days
Shares of the software giant fell as much as 0.8% on Friday, and if the session ends lower, it would mark Microsoft’s longest stretch of consecutive daily declines since a nine-day slump that ended in November 2011, as per the report. Over the past eight trading days, the stock has dropped 8.6%, erasing nearly $350 billion in market value, as per the report.
Microsoft Earnings Optimism Fades as AI Spending Raises Concerns
Microsoft shares have not recorded a single positive session since the company reported its quarterly earnings in late October, as per the Bloomberg report. Despite better-than-expected growth in its Azure cloud computing division, investor sentiment has turned cautious amid mounting concerns over the massive spending tied to artificial intelligence infrastructure, as per the report.
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Microsoft’s AI Investments Reach $34.9 Billion
The company reported $34.9 billion in capital expenditures for the quarter and indicated that spending will increase again in the current fiscal quarter, Bloomberg reported.
AI Stock Selloff Hits Nasdaq and Magnificent 7 Index
The broader pullback in AI-related stocks has also weighed on the market. The Nasdaq 100 Index and the Bloomberg Magnificent 7 Total Return Index have both declined about 4% this week, putting them on track for their largest one-week drop since April, as per the Bloomberg report.ALSO READ: Gold price today near $4,000 as stock market down over AI concerns – is it time to add more gold to your portfolio?
Apple Stock Gains as Investors Seek Stability
In contrast, Apple Inc shares rose as much as 0.9% on Friday, standing out as one of the few major tech names to gain ground, as per the Bloomberg report. The company, which has taken a more measured approach to artificial intelligence investments, has become a relative safe haven amid the ongoing AI sector weakness, according to the report.
FAQs
Why is Microsoft’s stock falling?
Investor concerns about heavy spending on AI infrastructure have led to a sharp decline in Microsoft’s stock.
How much value has Microsoft lost recently?
The stock has erased nearly $350 billion in market value over the past eight trading days.