Microsoft is Trading at Its Lowest Level in a Year

Dow Jones06-26 21:25

There's been a lot of focus on the recent selloff in tech stocks. But for some names, the pain started long before this week.

Nineteen stocks in the S&P 500 closed at a 52-week low yesterday. And you might be surprised by some of the names: Microsoft and Palantir Technologies were both on the list.

That's quite the fall from grace for stocks that were market darlings not so long ago.

As Dan Ives at Wedbush Securities sees it, investors are growing frustrated that big spending by some companies on AI infrastructure has yet to produce a clearer growth payoff. "Microsoft and Meta are being treated by investors like they are wearing winter jackets to the beach in the summer," he wrote.

Software companies like Palantir are facing a similar problem. While initial concerns about AI's impact on software may be overblown, investors don't appear to be taking any chances.

For now, they're favoring the more immediate winners of the AI buildout: chip makers and memory stocks.

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