© Getty Images/Jean-Luc Ichard
Microsoft's shares have seen the biggest drop in over 5 years, falling by 10% this week after the company announced evidence spending on artificial intelligence, as well as slowing growth in its key cloud unit.
On Thursday, the shares closed at $433.50, compared to $481.63 at the end of the session 2 days earlier, resulting in a failure of marketplace value of about $357 billion, which is 1 of the largest one-day losses in history, in addition to the sale of shares in the days of the COVID-19 pandemic.
Microsoft belongs to the most active American technology companies in the implementation of artificial intelligence (AI), investing billions in infrastructure and deepening cooperation with OpenAI.
The company implements generic tools in Windows, Office and Azure systems, while reducing thousands of jobs as part of restructuring.
The sale reflects the increasing scepticism of investors as to whether the immense amounts invested in AI by large technology companies will make crucial profits, Bloomberg says.
Microsoft recorded a 66% increase in investment outlay to evidence $37.5 billion in the last quarter, while an increase in its cloud branch Azure slowed down compared to the erstwhile quarter.
"As it is becoming increasingly apparent that Microsoft will not accomplish a advanced return on investment (ROI) from a massive investment in artificial intelligence, it is essential to revalue its shares to a more consistent historical fair value" – told Bloomberg Matthew Maley, chief marketplace strategist at Miller Tabak + Co.
This disaster spilled on another technological giants, and Alphabet and Nvidia at 1 point lost over $100 billion in marketplace value.
Alphabet later offset losses, closing the session at 0.7%, and Amazon.com finished the session at a minus 0.5%.
Microsoft reported that its quarterly profit increased due to investments in OpenAI, which increased its dependence on partnership, even though its individual computer and game departments recorded a 3% decrease.
The chief economist of the IMF, Pierre-Olivier Gourinchas, warned at the beginning of this period that the resilience of the planet economy could be tested if the boom on artificial intelligence did not increase productivity.
He warned that the increasing dependence of the planet economy on the US-driven boom on artificial intelligence would put it at risk, and any shortage of possible for this technology would likely origin a sharp decline in investment.
Translated by Google Translator
source:https://www.rt.com/news/631753-microsoft-stock-plunge/
