Microsoft suffers its longest consecutive decline since 2011, AI investment concerns weigh on tech stocks

Since the release of its quarterly financial report at the end of October, Microsoft’s stock price has not recorded any positive earnings trading day. In the past eight days, the stock has accumulated a decline of over 8%, with a market value evaporation of over 300 billion US dollars, marking the longest decline since the nine day consecutive decline that ended in November 2011.

Due to the increasingly cautious sentiment towards AI investment in the market, large technology stocks continue to be under pressure, and Microsoft has set a record for the longest consecutive decline in 14 years.

On Friday, Microsoft’s stock price fell slightly by 0.06%, with a cumulative decline of over 4% this week. In the past eight days, the stock has accumulated a decline of over 8%, with a market value evaporation of over 300 billion US dollars, marking the longest decline since the nine day series of declines that ended in November 2011.

Since the release of its quarterly financial report at the end of October, Microsoft’s stock price has not recorded any positive earnings trading day.

Although Wall Street has previously mentioned that Microsoft’s financial report contains some positive news, with a nearly 20% increase in revenue in the previous quarter, Azure Cloud’s growth is not impressive enough, and AI spending has exceeded expectations. And Wall Street is becoming increasingly cautious about the massive spending by companies on building AI infrastructure.

Microsoft’s capital expenditures for the quarter reached $34.9 billion, and the company stated that its expenditures will further increase this fiscal quarter. The market concerns caused by this investment scale are spreading to the entire technology sector.

The Nasdaq 100 Index and the Tech 7 Index both fell about 4% this week, marking their largest weekly percentage declines since April.

Contrary to the trend, Apple Inc. did not adopt the same aggressive strategy in the AI field. On Friday, Apple’s stock price rose by 0.9% at one point, although it still followed the technology sector to close lower in the late trading session.