Microsoft stock slides as investors rotate to AI winners
Updated
Updated · CNBC · May 6
Microsoft stock slides as investors rotate to AI winners
11 articles · Updated · CNBC · May 6
The shares fell 4% last Thursday and are down 14.5% this year, even after Microsoft reported better-than-expected results and forecast Azure cloud growth of 39% to 40%.
Investors are worried AI could erode demand for enterprise software and seat-based licences, while questions persist over Copilot's competitiveness and Microsoft's reliance on its OpenAI ties.
Microsoft said Productivity and Business Processes revenue rose 16% to $35.01 billion, and CEO Satya Nadella said Microsoft 365 Copilot now has more than 20 million paid seats.
Microsoft's AI revenue is soaring, so why are investors fleeing the stock for hotter rivals?
As AI threatens its software empire, can Microsoft's new pay-per-use model secure its future?