BUZZ-Microsoft falls; Stifel downgrades stock to 'hold', cuts PT to Street low

Reuters02-05 20:44
BUZZ-Microsoft falls; <a href="https://laohu8.com/S/SFB">Stifel</a> downgrades stock to 'hold', cuts PT to Street low

** Shares of Microsoft MSFT.O fall 1.5% to $407.86 in premarket trading

** Stifel downgrades MSFT stock to "hold" from "buy" on bleak Azure growth catalysts in the near term

** Brokerage cuts PT on stock to Street low of $392 from $540, implying more than 5% downside to stock's last close

** While MSFT is well-positioned to navigate the evolving AI landscape in the long term, its near-term prospects seem a bit more cloudy as Google appears to be rapidly gaining AI share and MSFT's OpenAI relationship is not nearly as additive as it once was - Stifel analysts

** MSFT reported Q2 results last month, its capital spending totaled $37.5 billion in Q2, a jump of nearly 66% from last year

** "We see no near-term catalysts and expect the stock to be range bound until either CAPEX growth slows below Azure growth and/or Azure posts a significant acceleration," Stifel said

** 56 of 60 brokerages rate the stock "buy" or higher, and rest rate it "hold"; their median PT is $600 - data compiled by LSEG

** YTD, MSFT was down 14.4% as of last close

(Reporting by Kanchana Chakravarty in Bengaluru)

((Kanchana.Chakravarty@thomsonreuters.com;))

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Comments

  • MaxGain
    02-05 23:27
    MaxGain
    Microsoft should be a STRONG SELL...it's going the way of the DINOSAURS 🦖. It was lucky to have survived the the post Dot.Com, now it's time for it to go bust and for good. Hope to see it go below 300 tomorrow and 200 next week.
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