By Jennifer Sor
Publication Date: 2025-11-20 12:22:00
One analyst has taken a dimmer view of two AI kingmakers this week.
Alex Haissl, an analyst at Rothschild & Co Redburn, is a lonely dissenting voice among research analysts when it comes to shares of Amazon and Microsoft. In a note to clients this week, Haissl downgraded the firm’s rating on the tech giants despite the ongoing hype for generative AI and the billions both firms have pledged to spend on the new tech in the coming years.
Investors look like they’re valuing Amazon and Microsoft’s capex plans as “as if cloud-1.0 economics still applied,” Haissl wrote, referring to the low-cost structure of cloud-based services that allowed Big Tech firms to boom in the 2010s.
But there are a few problems that suggest the AI boom likely won’t play out in the same way, and it is is probably far more costly than investors realize, he said.
“We downgrade Amazon and Microsoft with a heavy heart,” Haissl wrote, noting that the firm had held a bullish view on the two…
