Microsoft down 24% in 1st quarter amid massive AI spending
Microsoft is down 24% in the first quarter, on pace for its biggest quarterly loss since 2008.
The main reasons? Massive spending on AI projects and tough competition from fast-growing startups like OpenAI and Anthropic.
Portfolio manager Jonathan Cofsky points out these shifts could really change how Microsoft does business.
Analysts back Microsoft despite $146B capex
Even though the company projects $146 billion in capital expenditures for fiscal 2026 (year ending June 2026) (which has some folks worrying about slower software growth), most analysts are still backing Microsoft's AI push.
In fact, 63 out of 67 analysts recommend buying the stock, expecting it to bounce back strong, though right now, shares are trading well below their usual average, showing that investors are still a bit cautious.