CompetitionCompetition has largely caught up with Microsoft on the AI front, which reduces the justification for the current premium valuation.
Financial PerformanceMicrosoft is now guiding for a decline in operating margins in order to pay for the data center capex increasing from 12% of revenue to 21% of revenue.
Operational IssuesA CrowdStrike update pushed to its Falcon Agent caused a global Microsoft outage, impacting a host of services including airlines, banks, and other services running on Windows Machines.