Stock Market Today, June 25: Microsoft Falls as AI Spending Concerns Pressure Cloud Margin Outlook
Microsoft’s Azure growth remains a key support for the stock, with investors weighing whether AI demand can offset the rising cost of building cloud capacity.
Stock Market Today, June 25: Microsoft Falls as AI Spending Concerns Pressure Cloud Margin Outlook
Overview
Microsoft (NASDAQ:MSFT), an enterprise software and cloud services provider, closed at $352.83, down 3.45%. Stifel cut its price target to $400 from $415 and kept a Hold rating, while investors are watching Azure growth and AI spending.
The S&P 500 (SNPINDEX:^GSPC) slipped 0.01% to 7,357, while the Nasdaq Composite (NASDAQINDEX:^IXIC) fell 0.46% to 25,359. Among application software and cloud infrastructure rivals, Oracle (NYSE:ORCL) closed at $152.46, down 3.10%, and Alphabet (NASDAQ:GOOGL) finished at $342.19, down 0.82%, showing that large-cap tech weakness extended beyond Microsoft.
Details
Microsoft shares declined after Stifel reduced its price target and expressed concerns that margin expectations may be unrealistic as the company increases investment in AI infrastructure. While Azure growth continues to support the stock, investors are assessing whether demand for cloud and AI products can offset the rising costs of expanding and operating these services.
Source
Originally published at www.fool.com.
