Oppenheimer downgraded Microsoft’s stock, warning that OpenAI losses could weigh on Microsoft earnings, all while AI revenue might trail expectations.

Key Takeaways Analysts at Oppenheimer downgraded shares of Microsoft from "outperform" to "perform" on Tuesday.That's rare on Wall Street, with nearly all of the analysts currently tracking the software giant holding "buy" or equivalent ratings.

Oppenheimer analyst Timothy Horan downgraded shares of Microsoft to Perform from Outperform without a price target on Tuesday, citing concerns about AI spendin. Microsoft is one m

Microsoft's stock has lagged behind the tech market recently, partly due to AI fatigue and increased competition. The stock has grown only 1.3% in six months, with valuation concerns persisting.