The post Microsoft stock is nosediving; Here’s why appeared on BitcoinEthereumNews.com. Microsoft (NASDAQ: MSFT) shares are under pressure after internal sales adjustments signaled weakening momentum in the company’s push to commercialize its newest artificial intelligence (AI) products. MSFT opened Wednesday extending the premarket slump, down almost 3% at about $476. MSFT one-week stock price chart. Source: Finbold The drop was driven by investor reaction to fresh concerns about the company’s AI revenue trajectory. The downturn follows reports that several Microsoft divisions have scaled back their sales growth targets for key AI offerings. Notably, the adjustments came after a significant number of sales teams failed to meet growth goals during the fiscal year that ended in June. As things stand, the lowered targets apply specifically to newer AI-driven products, particularly agent-style tools that Microsoft has been promoting as the next major adoption cycle for enterprise customers. The rare quota reductions signal that uptake for some AI products is developing more slowly than Microsoft had projected. Notably, the American technology giant had been counting on rapid expansion in its AI portfolio to sustain the elevated growth that has fueled its market valuation over the past year. Instead, the target cuts suggest customers may be more cautious in committing large budgets to these emerging tools. AI bubble burst concerns  This cut comes as a blow to the firm considering that AI is seen as central to the company’s long-term growth story. Any sign of softness in demand is now feeding directly into market sentiment. The warning comes at a time when Microsoft is operating in a highly competitive AI landscape. This shift is feeding into broader concerns about a potential cooling in the AI boom. Markets have pushed valuations for AI-focused companies to historic highs on expectations of steep, sustained revenue growth. Any evidence that adoption may be slower, more fragmented, or less commercially… The post Microsoft stock is nosediving; Here’s why appeared on BitcoinEthereumNews.com. Microsoft (NASDAQ: MSFT) shares are under pressure after internal sales adjustments signaled weakening momentum in the company’s push to commercialize its newest artificial intelligence (AI) products. MSFT opened Wednesday extending the premarket slump, down almost 3% at about $476. MSFT one-week stock price chart. Source: Finbold The drop was driven by investor reaction to fresh concerns about the company’s AI revenue trajectory. The downturn follows reports that several Microsoft divisions have scaled back their sales growth targets for key AI offerings. Notably, the adjustments came after a significant number of sales teams failed to meet growth goals during the fiscal year that ended in June. As things stand, the lowered targets apply specifically to newer AI-driven products, particularly agent-style tools that Microsoft has been promoting as the next major adoption cycle for enterprise customers. The rare quota reductions signal that uptake for some AI products is developing more slowly than Microsoft had projected. Notably, the American technology giant had been counting on rapid expansion in its AI portfolio to sustain the elevated growth that has fueled its market valuation over the past year. Instead, the target cuts suggest customers may be more cautious in committing large budgets to these emerging tools. AI bubble burst concerns  This cut comes as a blow to the firm considering that AI is seen as central to the company’s long-term growth story. Any sign of softness in demand is now feeding directly into market sentiment. The warning comes at a time when Microsoft is operating in a highly competitive AI landscape. This shift is feeding into broader concerns about a potential cooling in the AI boom. Markets have pushed valuations for AI-focused companies to historic highs on expectations of steep, sustained revenue growth. Any evidence that adoption may be slower, more fragmented, or less commercially…

Microsoft stock is nosediving; Here’s why

Microsoft (NASDAQ: MSFT) shares are under pressure after internal sales adjustments signaled weakening momentum in the company’s push to commercialize its newest artificial intelligence (AI) products.

MSFT opened Wednesday extending the premarket slump, down almost 3% at about $476.

MSFT one-week stock price chart. Source: Finbold

The drop was driven by investor reaction to fresh concerns about the company’s AI revenue trajectory.

The downturn follows reports that several Microsoft divisions have scaled back their sales growth targets for key AI offerings.

Notably, the adjustments came after a significant number of sales teams failed to meet growth goals during the fiscal year that ended in June.

As things stand, the lowered targets apply specifically to newer AI-driven products, particularly agent-style tools that Microsoft has been promoting as the next major adoption cycle for enterprise customers.

The rare quota reductions signal that uptake for some AI products is developing more slowly than Microsoft had projected.

Notably, the American technology giant had been counting on rapid expansion in its AI portfolio to sustain the elevated growth that has fueled its market valuation over the past year. Instead, the target cuts suggest customers may be more cautious in committing large budgets to these emerging tools.

AI bubble burst concerns 

This cut comes as a blow to the firm considering that AI is seen as central to the company’s long-term growth story. Any sign of softness in demand is now feeding directly into market sentiment. The warning comes at a time when Microsoft is operating in a highly competitive AI landscape.

This shift is feeding into broader concerns about a potential cooling in the AI boom. Markets have pushed valuations for AI-focused companies to historic highs on expectations of steep, sustained revenue growth.

Any evidence that adoption may be slower, more fragmented, or less commercially immediate than projected adds weight to fears that parts of the sector may have run ahead of fundamentals.

Therefore, to some market quarters, Microsoft’s recalibrated expectations are now being interpreted as an early indication that the industry could face a more gradual monetization curve than the market has priced in.

Featured image via Shutterstock 

Source: https://finbold.com/microsoft-stock-is-nosediving-heres-why/

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