• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Economy Microsoft Stock: $10B AI Gamble Stalls After 10% Surge
Economy

Microsoft Stock: $10B AI Gamble Stalls After 10% Surge

by October 8, 2024
by October 8, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Microsoft’s $10B AI Bet: Stock Up 10%

At the beginning of the year 2024, there was a rapid rise in Microsoft’s stock price after the technology company invested $10 billion in OpenAI, a revolutionary company operating in the field of artificial intelligence (AI). The investment was based on OpenAI’s valuation and was meant to help Microsoft uplift its position in the increasingly dynamic AI market. Microsoft aimed to improve its ranking by offering innovative solutions, and thus, its Azure cloud services would be benefited to compete with the leader Amazon’s AWS in the market.

First off, Microsoft stock’s value visibly grew. Therefore, the company has been able to stay ahead of the overall market, at least during the initial half of the year. But by 2024, it began to underperform, as it rose by only 10%, which is small versus the broader market’s increase of 20%. The question is: why hasn’t Microsoft stock performed well despite its substantial AI investment?

Rising Competition: Microsoft’s $10B AI Bet Faces Investor Doubts

The idea that Microsoft’s $10 billion investment in OpenAI may have been premature has been entertained by an increasing number of investors. Instead of Microsoft’s original assumption that it would be the leader in the AI space and, therefore, more competitive, other companies like Alphabet and Amazon seem to be outpacing it. The latter example involves the displaying and modifying of data, such as the release of new sales reports or the reproduction of media files through Gemini AI’s link to the search engine results.

Amazon and Apple have also added AI characteristics to their iOS and AWS services, respectively. With these transformations, the risk exists that Microsoft’s head start in AI may be diminishing or even that it never existed.

In addition, the AI market’s low entry barriers—where companies with deep pockets can easily enter the space—raise questions about whether the investment Microsoft has made in these technologies will deliver the expected returns. This perceived risk is what is causing Microsoft’s share price to plummet, as investors fear the AI feature will only reflect positively upon the company several years from now.

Microsoft Stock Chart Analysis

MSFT/USD Stock Chart

We’ve been closely watching Microsoft Corp. (MSFT) shares, and the recent price action indicates a downward trend that has been consistent over the last few days. The stock opened at $417.05, and climbed to a $417.60 maximum point. However, shortly after that, they fell back. Finally, the day ended with a $416.01 close, a 0.25% decrease or $1.06 less than the completion day allocated.

From the chart, we notice that MSFT has been unable to break the $420 level, and their resistance is very strong. Since October 2, there have been descending highs and lows, suggesting a bearish trend. Although there are some times when the market goes up, the general market sentiment looks bearish and gives no room for optimism as volumes weaken and buyers simply aren’t in the game.

In the pre-market, the stock fell to $414.45, indicating further downside pressure could ensue. In case MSFT breaks through the $414 level, we might be in for more cutbacks. Alternatively, if the stock stands at this level, we could expect a recovery back to the $418-$420 interval. As we go forward, It’s crucial to take earnings reports into account.

For potential investors, now might be a good time to watch out for a buying opportunity, in particular, with the likely positive behaviour of Microsoft in the area of AI and the market uncertainties. Stay updated with all the details and be ready to modify your portfolio as necessary!

The post Microsoft Stock: $10B AI Gamble Stalls After 10% Surge appeared first on FinanceBrokerage.

You Might Also Like
  • Biden speaks with Netanyahu as US-Israel tensions escalate over direction of Hamas war
  • More McCarthy holdouts added to House Oversight, Judiciary committees
  • Fox News press pool report contradicts claim Biden family wasn’t at White House ahead of cocaine discovery
  • Biden had post-debate ‘verbal check-in’ with his doctor: White House
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Tech Regulations: The EU regulates, the US steps back
next post
Shares of generator maker soar, insurance stocks fall as Hurricane Milton intensifies

You may also like

ApeCoin and Akita Inu: Akita Inu records a new weekly...

September 26, 2024

Federal appeals court denies Michael Cohen’s attempt to revive lawsuit...

January 3, 2024

Democrat lawmakers defend character of Republican official facing investigation related...

August 23, 2023

The Impeachment Bistro: Republicans continue to keep impeachment on the...

September 4, 2023

Disgraced EcoHealth Alliance reaped nearly $100M in taxpayer funds since...

May 25, 2024

House Democrat slams Bernie Sanders’ call for barriers to Israel...

November 21, 2023

Trump blasted online after attack on DeSantis’ abortion ban: ‘A...

September 19, 2023

Fox News Voter Analysis: Trump dominates Iowa caucuses

January 16, 2024

Biden fundraising takes hit amid rising calls from Democrats for...

July 11, 2024

Gunmen kill 11 victims, including police officers, injure others during...

December 16, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • How to Find Compelling Charts in Every Sector

      July 10, 2025
    • White House accuses Powell of mismanaging Federal Reserve, citing headquarters renovation

      July 10, 2025
    • Italian chocolate giant Ferrero to buy Kellogg’s Froot Loops maker

      July 10, 2025
    • OpenAI to release web browser in challenge to Google Chrome

      July 10, 2025
    • Sports executive charged with bid-rigging in Texas arena project

      July 10, 2025

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 3,631 views
    • 2

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,919 views
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,607 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,577 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,451 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,171)
    • Investing (538)
    • Stock (2,662)

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 2

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • How to Find Compelling Charts in Every Sector

      July 10, 2025
    • White House accuses Powell of mismanaging Federal Reserve, citing headquarters...

      July 10, 2025
    • Italian chocolate giant Ferrero to buy Kellogg’s Froot Loops maker

      July 10, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,171)
    • Investing (538)
    • Stock (2,662)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    House GOP takes steps to hold...

    May 14, 2024

    EURUSD and GBPUSD: EURUSD on the...

    October 11, 2024

    House GOP demands Secret Service director...

    July 22, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here