Microsoft Shares Lag as ‘AI Fatigue,’ High Multiple Curb Rebound
- Stock has trailed Nasdaq 100, software ETF in past few months
- Oracle has emerged as popular alternative for tech investors
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Microsoft Corp. shares have lost their luster in the past few months, with some investors cooling on the artificial-intelligence trade and looking for better value elsewhere in the sector.
Shares in the software company dipped lower by less than 1% over the past six months, compared with an almost 10% gain for the Nasdaq 100 Index. With a drop of 0.6% on Tuesday, the stock is nearly 9% below its all-time high, while an exchange-traded fund that tracks software firms closed at a record on Monday. The underperformance has come as Microsoft reported mixed results in its latest quarter and as AI more generally loses steam as a driver of stock gains.