Microsoft Stock Slips Today After Morning Rally Amid Concerns of Rising AI Costs

Tuesday was a bit of a mixed bag for Microsoft (NASDAQ: MSFT), with the stock closing at $413.27, down by 0.08%. Investors are trying to balance the scary reality of rising AI costs against the hope for big earnings down the road.

But, it wasn’t just Microsoft, the market was soft, with heavyweights like Apple and Alphabet also seeing some pressure. This tells the volatility across the whole tech world right now. It was a busy day on the floor, too. Trading volume hit 44.6 million shares, which is way above the three-month average.

In case you missed, today, Microsoft stock opened at $419.62 and shot up to $423.68 before easing a little. As of midday U.S. time, it’s around $419.92, up 1.5% on the day. That’s above yesterday’s close, showing buyers are stepping in.

But, wait, is the AI hype finally cooling off? Some analysts think so. Melius recently downgraded the Microsoft stock to “hold” because they’re worried about how those aggressive investment plans will affect cash flow.

As reported by The Motely Fool, Stifel analyst Brad Reback went even further, cutting his price target by nearly 30% and suggesting that the stock needs a break from all the AI madness.

With all this action and volatility, what do you think, is Microsoft stock still a buy, or is it time to wait and watch? Let’s engage in discussion in the commennts below.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Stock market investments carry risk, and readers should conduct their own research or consult a qualified financial advisor before making any investment decisions. As always, stock prices and percentages are based on the time of writing and are subject to change due to market volatility. Please verify current quotes before making any investment decisions.