Microsoft Drops 3.45% to $352.83 as Stifel Cuts Target on AI Margin Concerns
Updated
Updated · The Motley Fool · Jun 25
Microsoft Drops 3.45% to $352.83 as Stifel Cuts Target on AI Margin Concerns
3 articles · Updated · The Motley Fool · Jun 25
Summary
$352.83 marked Microsoft's close, down 3.45%, after Stifel cut its price target to $400 from $415 and kept a Hold rating.
Stifel said heavier AI infrastructure spending could make cloud margin expectations too optimistic, even as Azure growth remains a key support for the stock.
Large-cap tech weakness extended beyond Microsoft: Oracle fell 3.10% and Alphabet lost 0.82%, while the Nasdaq slipped 0.46%.
Xbox price increases added a smaller cost warning for investors, highlighting rising memory and storage expenses as the broader debate centers on whether AI and cloud demand can justify higher spending.