MSFT fell -2.7% overnight, only a touch weaker than the NASDAQ which closed down -1.9%. Crowd growth disappointed analysts, although AI revenue continues to impress, with 18% growth in earnings to $US62bn beating estimates of $61.12bn – again current valuation being the biggest issue after recent strong gains. However, investor expectations are getting very lofty about their expectations from AI; we can see a pullback by the Magnificent Seven as we experience a period of reality.
- While we can see MSFT consolidating around $US400, it looks set to outperform many of the “Magnificent Seven” – we hold Microsoft (MSFT US) in our International Equities Portfolio, however have turned more cautious in the short term.
MM has turned short-term neutral on MSFT ~$400
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