• jubilationtcornpone@sh.itjust.works
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    12 days ago

    This drawdown has sparked a debate about the “Magnificent Seven” member: Is Microsoft stock a falling knife, or has the market overreacted, presenting a rare opportunity to buy a preeminent artificial intelligence (AI) stock at a discount?

    First, “the market” overreacts about everything. Not surprising given that stock price volitility is mostly driven by speculation.

    Second, who writes this crap? Anyone who thinks of Microsoft as an “AI stock” is clueless. The majority of Microsoft’s revenue comes from “services”, a big chunk of which is derived from subscriptions for Azure, Office 365, and other hosted solutions.

    Microsoft has been racing to cram “AI” into as many areas as possible. Probably in an attempt to justify their substantial R&D and capital expenditures. But calling them an “AI stock” is insane considering “AI” is not their core business or even a profitable part of their business.

  • jtrek@startrek.website
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    12 days ago

    Maybe they could focus on delivering quality products that customers want, instead of investing all their time and effort into expensive AI widgets people don’t.

  • disorderly@lemmy.world
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    12 days ago

    GitHub is teetering on one 9 over an entire quarter. There are serious, systemic problems in Microsoft’s shop.