Competitive LandscapeCompetition has largely caught up with Microsoft on the AI front, which reduces the justification for the current premium valuation.
Financial PerformanceMicrosoft's stock has underperformed nearly all large cap software peers since the end of Q2, reflecting investor concerns over capital expenditures and margin compression.
Operational ChallengesRe-segmentation of the business is going to make it more difficult for investors to easily understand the results, potentially leading to confusion and misinterpretation.