Microsoft Stock Is Falling as Artificial Intelligence (AI) Growth Is Getting More Expensive | The Motley Fool

Microsoft Stock Is Falling as Artificial Intelligence (AI) Growth Is Getting More Expensive | The Motley Fool

Share prices of Microsoft (MSFT 0.35%) were down 6% immediately following its fiscal second-quarter earnings report on Jan. 29. The software leader delivered revenue and earnings that topped Wall Street’s expectations, but it wasn’t enough for investors to justify bidding the share price to new highs.

The main issue seems to be valuation. Microsoft has accelerated its capital expenditures over the past few years to support artificial…

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