{"id":51154,"date":"2024-10-01T18:02:28","date_gmt":"2024-10-01T18:02:28","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2024\/10\/01\/microsoft-shares-lag-amid-ai-fatigue\/"},"modified":"2024-10-01T18:02:28","modified_gmt":"2024-10-01T18:02:28","slug":"microsoft-shares-lag-amid-ai-fatigue","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2024\/10\/01\/microsoft-shares-lag-amid-ai-fatigue\/","title":{"rendered":"Microsoft shares lag amid \u2018AI fatigue&#8217;"},"content":{"rendered":"<div style=\"text-align:center\"><\/div><p> \n<\/p>\n<div id=\"\">\n<header aria-label=\"Beginning of Article\" class=\"article-header article-header--story\">\n<nav aria-label=\"Breadcrumb\" class=\"breadcrumbs\" data-aqa=\"nav-breadcrumb\">\n<p>Breadcrumb Trail Links<\/p>\n<ol class=\"breadcrumbs__items list-unstyled\">\n<li class=\"breadcrumbs__item\">Investor<\/li>\n<li class=\"breadcrumbs__item\">News<\/li>\n<\/ol>\n<\/nav>\n<div class=\"article-header__detail\">\n<div class=\"article-header__detail__texts\">\n<p class=\"article-subtitle\">Shares are up just 1.3% over the past six months<\/p>\n<div class=\"article-meta\">\n<div class=\"wire-published-by\">\n<p class=\"visually-hidden\">Author of the article:<\/p>\n<p><\/p>\n<div class=\"wire-published-by__author-container\">\n<p>Bloomberg News<\/p>\n<p>Ryan Vlastelica<\/p>\n<\/div>\n<\/div>\n<p><span class=\"published-date__since\">Published Oct 01, 2024<\/span> \u00a0\u2022\u00a0 <span class=\"published-date__word-count\">3 minute read<\/span><\/p>\n<div class=\"article-meta__bottom\">\n<div class=\"bookmark-wrapper\">\n<div class=\"popover\" data-aqa=\"popover\" data-click-to-appear=\"True\" data-container=\"\" data-container-offset=\"\" data-no-style=\"\" data-popover-component=\"\" data-position=\"top\" data-sticky=\"\" data-tail-offset=\"200\" data-tail-position=\"right\"><button class=\"popover__trigger bookmark-button\"><span class=\"save-article-button save-article-button--default\" title=\"Save article\" data-article-id=\"25a07e81-691d-4d25-af87-cff024cbb11f\" data-evt-skip-click=\"true\"\/><\/button><\/p>\n<div aria-describedby=\"popover-desc-popover-bookmark\" class=\"popover__content\" hidden=\"\" role=\"dialog\">\n<div class=\"popover__content__wrapper\">\n<div class=\"popover__content__text\" id=\"popover-desc-popover-bookmark\">\n<div class=\"bookmark__popover__content\">\n<p>You can save this article by registering for free here. Or sign-in if you have an account.<\/p>\n<\/div>\n<\/div>\n<p><button class=\"popover__content__close\" data-evt-skip-click=\"true\" title=\"Close\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:xlink=\"http:\/\/www.w3.org\/1999\/xlink\" viewbox=\"0 0 12 12\" class=\"icon--close\" height=\"12\" version=\"1.1\" width=\"12\"><polygon points=\"12 0.95 11.05 0 6 5.05 0.95 0 0 0.95 5.05 6 0 11.05 0.95 12 6 6.95 11.05 12 12 11.05 6.95 6\"\/><\/svg><\/button><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<figure class=\"featured-image\" data-aqa=\"featured-image\"><picture class=\"featured-image__ratio\"><img loading=\"lazy\" decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" fifu-lazy=\"1\" fifu-data-sizes=\"auto\" fifu-data-srcset=\"https:\/\/i0.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/no11001microsoft.jpg?quality=90&strip=all&w=288&h=216&sig=M9TaMYGjt6rCbHAcLS1jaQ&ssl=1&w=75&resize=75&ssl=1 75w, https:\/\/i0.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/no11001microsoft.jpg?quality=90&strip=all&w=288&h=216&sig=M9TaMYGjt6rCbHAcLS1jaQ&ssl=1&w=100&resize=100&ssl=1 100w, https:\/\/i0.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/no11001microsoft.jpg?quality=90&strip=all&w=288&h=216&sig=M9TaMYGjt6rCbHAcLS1jaQ&ssl=1&w=150&resize=150&ssl=1 150w, https:\/\/i0.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/no11001microsoft.jpg?quality=90&strip=all&w=288&h=216&sig=M9TaMYGjt6rCbHAcLS1jaQ&ssl=1&w=240&resize=240&ssl=1 240w, https:\/\/i0.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/no11001microsoft.jpg?quality=90&strip=all&w=288&h=216&sig=M9TaMYGjt6rCbHAcLS1jaQ&ssl=1&w=320&resize=320&ssl=1 320w, https:\/\/i0.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/no11001microsoft.jpg?quality=90&strip=all&w=288&h=216&sig=M9TaMYGjt6rCbHAcLS1jaQ&ssl=1&w=500&resize=500&ssl=1 500w, https:\/\/i0.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/no11001microsoft.jpg?quality=90&strip=all&w=288&h=216&sig=M9TaMYGjt6rCbHAcLS1jaQ&ssl=1&w=640&resize=640&ssl=1 640w, https:\/\/i0.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/no11001microsoft.jpg?quality=90&strip=all&w=288&h=216&sig=M9TaMYGjt6rCbHAcLS1jaQ&ssl=1&w=800&resize=800&ssl=1 800w, https:\/\/i0.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/no11001microsoft.jpg?quality=90&strip=all&w=288&h=216&sig=M9TaMYGjt6rCbHAcLS1jaQ&ssl=1&w=1024&resize=1024&ssl=1 1024w, https:\/\/i0.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/no11001microsoft.jpg?quality=90&strip=all&w=288&h=216&sig=M9TaMYGjt6rCbHAcLS1jaQ&ssl=1&w=1280&resize=1280&ssl=1 1280w, https:\/\/i0.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/no11001microsoft.jpg?quality=90&strip=all&w=288&h=216&sig=M9TaMYGjt6rCbHAcLS1jaQ&ssl=1&w=1600&resize=1600&ssl=1 1600w\" alt=\"The Microsoft Corp. store on Fifth Avenue in New York City.\" class=\"featured-image__image type:primaryImage\" fifu-data-src=\"https:\/\/i0.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/no11001microsoft.jpg?quality=90&strip=all&w=288&h=216&sig=M9TaMYGjt6rCbHAcLS1jaQ&ssl=1\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/no11001microsoft.jpg?quality=90&strip=all&w=288&h=216&sig=M9TaMYGjt6rCbHAcLS1jaQ,\n                    https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/no11001microsoft.jpg?quality=90&strip=all&w=576&h=432&sig=HSkwqY6otUoaq_2EEZyFJQ 2x\" height=\"750\" width=\"1000\"\/><\/source><\/source><\/source><\/source><\/source><\/picture><figcaption class=\"featured-image__caption image-caption\"><span class=\"caption\">The Microsoft Corp. store on Fifth Avenue in New York City. <\/span> <span class=\"credit\">Photo by Adam Gray\/Getty Images files<\/span><\/figcaption><\/figure>\n<\/div>\n<\/header>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<h2 class=\"visually-hidden\">Article content<\/h2>\n<p data-async=\"\">Microsoft Corp. shares have lost their lustre in the past few months, with some investors cooling on the artificial intelligence trade and looking for better value elsewhere in the sector.<\/p>\n<p>Shares in the software company are up just 1.3 per cent over the past six months, as of closing on Monday, compared with an almost 10 per cent gain by the Nasdaq 100 index. The stock is eight per cent below its all-time high, while an exchange-traded fund that tracks software firms closed at a record on Monday.<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group ad_counter_2\">\n<section aria-describedby=\"advertisment9799071843563795148707922494619648\" class=\"ad\">\n<p>Advertisement 2<\/p>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-2\">\n<div class=\"ad__inner__container\" data-ad=\"[[6,6],[1200,250],[1200,90],[970,90],[970,250],[728,90],[300,250]]\" data-ad-interscroller=\"6x6\" data-ad-loc=\"2\" data-ad-mobile=\"[[6,6],[320,50],[300,50],[300,250],[300,600]]\" data-aqa=\"advertisement\" id=\"ad-2\" style=\"--desktopHeight:250px;--mobileHeight:600px\">\n<div aria-hidden=\"true\" class=\"ad__placeholder\">\n<p>This advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<div class=\"article-block article-block-bg 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fifu-data-srcset=\"https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/Microsoft-Lags-Shares-have-underperformed-in-recent-months-1.jpg?quality=5&strip=all&w=100&sig=1-rIMepm5b77XPssbfB8AA&ssl=1&w=75&resize=75&ssl=1 75w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/Microsoft-Lags-Shares-have-underperformed-in-recent-months-1.jpg?quality=5&strip=all&w=100&sig=1-rIMepm5b77XPssbfB8AA&ssl=1&w=100&resize=100&ssl=1 100w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/Microsoft-Lags-Shares-have-underperformed-in-recent-months-1.jpg?quality=5&strip=all&w=100&sig=1-rIMepm5b77XPssbfB8AA&ssl=1&w=150&resize=150&ssl=1 150w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/Microsoft-Lags-Shares-have-underperformed-in-recent-months-1.jpg?quality=5&strip=all&w=100&sig=1-rIMepm5b77XPssbfB8AA&ssl=1&w=240&resize=240&ssl=1 240w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/Microsoft-Lags-Shares-have-underperformed-in-recent-months-1.jpg?quality=5&strip=all&w=100&sig=1-rIMepm5b77XPssbfB8AA&ssl=1&w=320&resize=320&ssl=1 320w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/Microsoft-Lags-Shares-have-underperformed-in-recent-months-1.jpg?quality=5&strip=all&w=100&sig=1-rIMepm5b77XPssbfB8AA&ssl=1&w=500&resize=500&ssl=1 500w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/Microsoft-Lags-Shares-have-underperformed-in-recent-months-1.jpg?quality=5&strip=all&w=100&sig=1-rIMepm5b77XPssbfB8AA&ssl=1&w=640&resize=640&ssl=1 640w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/Microsoft-Lags-Shares-have-underperformed-in-recent-months-1.jpg?quality=5&strip=all&w=100&sig=1-rIMepm5b77XPssbfB8AA&ssl=1&w=800&resize=800&ssl=1 800w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/Microsoft-Lags-Shares-have-underperformed-in-recent-months-1.jpg?quality=5&strip=all&w=100&sig=1-rIMepm5b77XPssbfB8AA&ssl=1&w=1024&resize=1024&ssl=1 1024w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/Microsoft-Lags-Shares-have-underperformed-in-recent-months-1.jpg?quality=5&strip=all&w=100&sig=1-rIMepm5b77XPssbfB8AA&ssl=1&w=1280&resize=1280&ssl=1 1280w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/Microsoft-Lags-Shares-have-underperformed-in-recent-months-1.jpg?quality=5&strip=all&w=100&sig=1-rIMepm5b77XPssbfB8AA&ssl=1&w=1600&resize=1600&ssl=1 1600w\" alt=\"Microsoft Lags\" class=\"embedded-image__image lazyload\" data-src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/Microsoft-Lags-Shares-have-underperformed-in-recent-months-1.jpg?quality=90&strip=all&w=288&sig=rFhUZ3cmu-ITPWjvH72SBw\" data-srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/Microsoft-Lags-Shares-have-underperformed-in-recent-months-1.jpg?quality=90&strip=all&w=288&sig=rFhUZ3cmu-ITPWjvH72SBw,\n                https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/Microsoft-Lags-Shares-have-underperformed-in-recent-months-1.jpg?quality=90&strip=all&w=576&sig=t0i1JzLXo6ZIv8Ia3JS2xQ 2x\" fifu-data-src=\"https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/Microsoft-Lags-Shares-have-underperformed-in-recent-months-1.jpg?quality=5&strip=all&w=100&sig=1-rIMepm5b77XPssbfB8AA&ssl=1\" height=\"675\" loading=\"lazy\" width=\"1200\"\/><\/source><\/source><\/source><\/source><\/source><\/picture><\/figure>\n<p>The underperformance has come as Microsoft reported mixed results in its latest quarter and as AI more generally loses steam as a driver of stock gains.<\/p>\n<p>\u201cThere\u2019s some AI fatigue when it comes to companies like Microsoft, given the incredible run they\u2019ve had,\u201d Neville Javeri, senior fund manager at Allspring Global Investments Holdings LLC, said. Investors \u201cneed to see additional proof points about demand for AI products and services for the rally to hold.\u201d<\/p>\n<\/section>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<p>Analysts at D.A. Davidson &amp; Co. have also turned more cautious on Microsoft.<\/p>\n<p>\u201cCompetition has largely caught up with Microsoft on the AI front, which reduces the justification for the current premium valuation,\u201d analyst Gil Luria said in a note last week, citing cloud rivals Amazon.com Inc. and Alphabet Inc.<\/p>\n<figure class=\"embedded-image\" data-aqa=\"embed-image\"><picture class=\"embedded-image__ratio\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" fifu-lazy=\"1\" fifu-data-sizes=\"auto\" fifu-data-srcset=\"https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/Metas-Quarterly-Streak-1.jpg?quality=5&strip=all&w=100&sig=9G2HF-bYmtQ8C2WWxdICFQ&ssl=1&w=75&resize=75&ssl=1 75w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/Metas-Quarterly-Streak-1.jpg?quality=5&strip=all&w=100&sig=9G2HF-bYmtQ8C2WWxdICFQ&ssl=1&w=100&resize=100&ssl=1 100w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/Metas-Quarterly-Streak-1.jpg?quality=5&strip=all&w=100&sig=9G2HF-bYmtQ8C2WWxdICFQ&ssl=1&w=150&resize=150&ssl=1 150w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/Metas-Quarterly-Streak-1.jpg?quality=5&strip=all&w=100&sig=9G2HF-bYmtQ8C2WWxdICFQ&ssl=1&w=240&resize=240&ssl=1 240w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/Metas-Quarterly-Streak-1.jpg?quality=5&strip=all&w=100&sig=9G2HF-bYmtQ8C2WWxdICFQ&ssl=1&w=320&resize=320&ssl=1 320w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/Metas-Quarterly-Streak-1.jpg?quality=5&strip=all&w=100&sig=9G2HF-bYmtQ8C2WWxdICFQ&ssl=1&w=500&resize=500&ssl=1 500w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/Metas-Quarterly-Streak-1.jpg?quality=5&strip=all&w=100&sig=9G2HF-bYmtQ8C2WWxdICFQ&ssl=1&w=640&resize=640&ssl=1 640w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/Metas-Quarterly-Streak-1.jpg?quality=5&strip=all&w=100&sig=9G2HF-bYmtQ8C2WWxdICFQ&ssl=1&w=800&resize=800&ssl=1 800w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/Metas-Quarterly-Streak-1.jpg?quality=5&strip=all&w=100&sig=9G2HF-bYmtQ8C2WWxdICFQ&ssl=1&w=1024&resize=1024&ssl=1 1024w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/Metas-Quarterly-Streak-1.jpg?quality=5&strip=all&w=100&sig=9G2HF-bYmtQ8C2WWxdICFQ&ssl=1&w=1280&resize=1280&ssl=1 1280w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/Metas-Quarterly-Streak-1.jpg?quality=5&strip=all&w=100&sig=9G2HF-bYmtQ8C2WWxdICFQ&ssl=1&w=1600&resize=1600&ssl=1 1600w\" alt=\"Meta's Quarterly Streak\" class=\"embedded-image__image lazyload\" data-src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/Metas-Quarterly-Streak-1.jpg?quality=90&strip=all&w=288&sig=h7y73NIXKJImrnzev0IOwg\" data-srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/Metas-Quarterly-Streak-1.jpg?quality=90&strip=all&w=288&sig=h7y73NIXKJImrnzev0IOwg,\n                https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/Metas-Quarterly-Streak-1.jpg?quality=90&strip=all&w=576&sig=wisEI4ymv4eDQylBnc0aSw 2x\" fifu-data-src=\"https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/10\/Metas-Quarterly-Streak-1.jpg?quality=5&strip=all&w=100&sig=9G2HF-bYmtQ8C2WWxdICFQ&ssl=1\" height=\"675\" loading=\"lazy\" width=\"1200\"\/><\/source><\/source><\/source><\/source><\/source><\/picture><\/figure>\n<p>A diminished lead in AI \u201cwill make it hard for MSFT to continue to outperform,\u201d he said in downgrading the stock to neutral from buy.<\/p>\n<p>Microsoft trades at 31 times estimated earnings and almost 11 times projected revenue. Both multiples are down from recent peaks, but they\u2019re well above their 10-year averages. The Nasdaq 100 trades at less than 26 times forward earnings and under five times sales.<\/p>\n<\/section>\n<div class=\"js-widget-content article-content__widget-group article-content__widget-group--content-slot23 article-content__widget-group--newsletter-slot\">\n<section class=\"newsletter-widget__new-story-page None background--primary-light-gradient\" aria-labelledby=\"FPInvestor4977848603106375884823489746567168\" data-account-id=\"b9d3df2fccd108b5eff3c44f573b2cd6\" data-aqa=\"widget-newsletter\" data-newsletter=\"single\" data-newsletter-component=\"\" data-target-list=\"FP_Investor\" data-widget=\"newsletter\">\n<div class=\"newsletter-new-story-page-template\">\n<div class=\"newsletter-widget__header__new-story-page\">\n<div class=\"newsletter-widget__banner__new-story-page\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" fifu-lazy=\"1\" fifu-data-sizes=\"auto\" fifu-data-srcset=\"https:\/\/dcs-static.gprod.postmedia.digital\/17.1.0\/websites\/images\/newsletters\/icon-fp-investor.svg 75w, https:\/\/dcs-static.gprod.postmedia.digital\/17.1.0\/websites\/images\/newsletters\/icon-fp-investor.svg 100w, https:\/\/dcs-static.gprod.postmedia.digital\/17.1.0\/websites\/images\/newsletters\/icon-fp-investor.svg 150w, https:\/\/dcs-static.gprod.postmedia.digital\/17.1.0\/websites\/images\/newsletters\/icon-fp-investor.svg 240w, https:\/\/dcs-static.gprod.postmedia.digital\/17.1.0\/websites\/images\/newsletters\/icon-fp-investor.svg 320w, https:\/\/dcs-static.gprod.postmedia.digital\/17.1.0\/websites\/images\/newsletters\/icon-fp-investor.svg 500w, https:\/\/dcs-static.gprod.postmedia.digital\/17.1.0\/websites\/images\/newsletters\/icon-fp-investor.svg 640w, https:\/\/dcs-static.gprod.postmedia.digital\/17.1.0\/websites\/images\/newsletters\/icon-fp-investor.svg 800w, https:\/\/dcs-static.gprod.postmedia.digital\/17.1.0\/websites\/images\/newsletters\/icon-fp-investor.svg 1024w, https:\/\/dcs-static.gprod.postmedia.digital\/17.1.0\/websites\/images\/newsletters\/icon-fp-investor.svg 1280w, https:\/\/dcs-static.gprod.postmedia.digital\/17.1.0\/websites\/images\/newsletters\/icon-fp-investor.svg 1600w\" alt=\"FP Investor Banner\" loading=\"lazy\" fifu-data-src=\"https:\/\/dcs-static.gprod.postmedia.digital\/17.1.0\/websites\/images\/newsletters\/icon-fp-investor.svg\"\/><\/div>\n<div>\n<p>Investor<\/p>\n<p class=\"newsletter-widget__text__new-story-page\">Canada&#8217;s best source for investing news, analysis and insight.<\/p>\n<\/div>\n<\/div>\n<div class=\"newsletter-widget__body__new-story-page\">\n<div class=\"js-replace-main__new-story-page\">\n<p class=\"newsletter-widget__disclaimer__new-story-page text-size--tiny\">By signing up you consent to receive the above newsletter from Postmedia Network Inc.<\/p>\n<\/div>\n<div class=\"js-submit-success\" hidden=\"\" id=\"submitSuccessFP_Investor\">\n<p>Thanks for signing up!<\/p>\n<p class=\"newsletter-widget__text__new-story-page\">A welcome email is on its way. If you don&#8217;t see it, please check your junk folder.<\/p>\n<p class=\"newsletter-widget__text__new-story-page newsletter__feedback--last\">The next issue of Investor will soon be in your inbox.<\/p>\n<\/div>\n<p class=\"newsletter-widget__text__new-story-page js-submit-error\" style=\"margin-top: 8px\" hidden=\"\" id=\"submitErrorFP_Investor\">We encountered an issue signing you up. Please try again<\/p>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group ad_counter_3\">\n<section aria-describedby=\"advertisment1816839689121874079819319918723072\" class=\"ad\">\n<p>Advertisement 3<\/p>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-3\">\n<div class=\"ad__inner__container\" data-ad=\"[[7,7],[1200,250],[1200,90],[970,90],[970,250],[728,90],[300,250]]\" data-ad-interscroller=\"7x7\" data-ad-loc=\"3\" data-ad-mobile=\"[[7,7],[300,250],[320,50],[300,50]]\" data-aqa=\"advertisement\" id=\"ad-3\" style=\"--desktopHeight:250px;--mobileHeight:250px\">\n<div aria-hidden=\"true\" class=\"ad__placeholder\">\n<p>This advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<p>The stock has also gathered some unfavourable comparisons to Oracle Corp., which has emerged as a popular alternative for software investors after its latest results showed robust AI tailwinds of its own. Oracle offers a lower multiple, trading at 26 times projected earnings, prompting several firms to upgrade the stock over the past month.<\/p>\n<p>\u201cOracle is sort of the new kid on the block, because it is more in the first innings of the growth curve,\u201d Christopher Ouimet, a portfolio manager at Logan Capital Management Inc., said. \u201cMore investors are rolling up their sleeves to look at it, whereas with Microsoft, they\u2019re sharpening their pencils as they focus on Azure growth and when it will see more of a return on its capex.\u201d<\/p>\n<p>Microsoft\u2019s July earnings, in contrast, revealed a slowdown in its Azure cloud-computing service. While it showed growth attributable to AI, that figure was lower than some had hoped, underlining concerns about when Microsoft will see a more pronounced return on investments in AI.<\/p>\n<p>Even after a weaker couple of months, Microsoft shares remain up 14 per cent this year, and the recent underperformance follows a 57 per cent gain in 2023. The vast majority on Wall Street remain bullish, with more than 94 per cent of analysts rating Microsoft stock a buy, according to data compiled by Bloomberg.<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group ad_counter_4\">\n<section aria-describedby=\"advertisment9456875290757106474863163602894848\" class=\"ad\">\n<p>Advertisement 4<\/p>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-4\">\n<div class=\"ad__inner__container\" data-ad=\"[[1200,250],[1200,90],[970,90],[970,250],[728,90],[300,250]]\" data-ad-loc=\"4\" data-ad-mobile=\"[[320,50],[300,50],[300,250]]\" data-aqa=\"advertisement\" id=\"ad-4\" style=\"--desktopHeight:250px;--mobileHeight:250px\">\n<div aria-hidden=\"true\" class=\"ad__placeholder\">\n<p>This advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<p>The company\u2019s long-term prospects are also still viewed favourably. Revenue is expected to rise 14.5 per cent in the 2025 fiscal year and accelerate for the next few years, reaching a 19 per cent pace by 2028. Net earnings per share are also seen growing at a double-digit clip for the next several years.<\/p>\n<p>With that backdrop, investors such as Allspring\u2019s Javeri and Logan Capital\u2019s Ouimet remain positive on the shares in the long term, despite short-term challenges.<\/p>\n<p>\u201cIt\u2019s never surprising to see a stock take a pause, especially after doing well and with the market rally broadening, but it\u2019s hard to find a company of this size and quality that\u2019s going to grow at this level for the next several years,\u201d Ouimet said. \u201cMicrosoft is so well positioned that the more it pulls back, the more attractive it looks.\u201d<\/p>\n<p><em>\u2014 With assistance from Subrat Patnaik.<\/em><\/p>\n<p data-async=\"\">Bloomberg.com<\/p>\n<\/section>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<\/section>\n<section class=\"article-content__share-group article-delimiter\" data-evt-val=\"{\" control_fields=\"\" data-evt-typ=\"page_scroll\">\n<p>Share this article in your social network<\/p>\n<\/section>\n<\/div>\n\n<br \/>Microsoft shares lag amid \u2018AI fatigue&#8217;<\/a><br \/>\n<br \/>2024-10-01 18:02:28<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Breadcrumb Trail Links Investor News Shares are up just 1.3% over the past six months Author of the article: Bloomberg News Ryan Vlastelica Published Oct 01, 2024 \u00a0\u2022\u00a0 3 minute&#8230;<\/p>\n","protected":false},"author":2,"featured_media":51155,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/secure.gravatar.com\/avatar\/2c61c569c35df1bfebdf8601ae03b90f?s=70&d=mp","fifu_image_alt":"","footnotes":""},"categories":[31],"tags":[],"class_list":["post-51154","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy"],"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/51154","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=51154"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/51154\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/51155"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=51154"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=51154"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=51154"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}