By Ryan Vlastelica
Publication Date: 2026-03-27 13:35:00
(Bloomberg) — Microsoft Corp. is at the intersection of two troubling trends roiling the technology sector, which has the stock on track for its worst quarterly performance since the global financial crisis two decades ago.
First, the software giant is doubling down on capital expenditures as Wall Street increasingly asks when investments in artificial intelligence infrastructure will produce more dramatic payoffs in revenue growth. And second, investors are selling software stocks over fears that AI startups like Anthropic and OpenAI are creating agents that can replace products made by companies like Microsoft.
“There is this concern that rather than paying Microsoft, we’ll see more customers go directly to AI vendors, which could disrupt the core business, or at least pressure pricing and margins,” said Jonathan Cofsky, portfolio manager at Janus Henderson Investors, which holds the shares.
The company’s stock is down 25% in the first quarter, on pace for…
