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The AI "Days of Our Lives"
The competition amongst the largest of the large-cap tech companies is heating up. For those paying attention to the drama playing out behind the scenes, the script is getting as
Microsoft: Open AI Is Becoming A 'Poached' Egg (Rating Downgrade)
Summary
- Microsoft Corporation faces challenges due to its partnership with OpenAI, which is experiencing internal issues and staff poaching by Meta.
- Despite these headwinds, Microsoft’s stock has continued to perform better than the broader market rally.
- Concerns about OpenAI’s stability could impact Microsoft’s AI growth narrative and investor confidence going forward.
- I remain watchful of Microsoft’s AI partnerships, but current market momentum supports a neutral-to-positive outlook for the stock.
- For the time being, I'm downgrading MSFT stock to hold.
I'm a full time value investor and writer who enjoys using classical value ratios to pick my portfolio. My previous working background is in private credit and CRE mezzanine financing for a family office. I'm also a fluent Mandarin speaker in both business and court settings, previously serving as a court interpreter. I have spent a good chunk of my adult working life in China and Asia. I have worked with top CRE developers in the past including The Witkoff Group , Kushner Companies, Durst Organization and Fortress Investment Group.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of AMZN, GOOGL, MSFT, AAPL, NVDA, META either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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