Microsoft fell for a second straight day. The Nasdaq rose more than 2%, and QQQ gained 3.02%, while Microsoft dropped 2.08% to 522.07. Its low of 518.45 came close to the 50-day moving average at 518.20.
There’s just one reason to sell: Anthropic launched Claude Sheets and Whiteboards on Tuesday, taking direct aim at Office, Microsoft’s cash cow. And yet Microsoft just agreed to spend around $1 billion to buy Anthropic private shares, and plans to pour billions more into Azure. The company it invested in is now encroaching on its territory. The market is pricing in the threat before a single customer has switched over.
Evercore reiterated its Buy rating on Wednesday, saying Microsoft is embedded in the infrastructure. I’m not buying the dip just yet; I’m watching the close. Can it hold 518.20, or was this just a two-day spike? A break below that level would confirm that model makers are eating into the application layer.
There’s just one reason to sell: Anthropic launched Claude Sheets and Whiteboards on Tuesday, taking direct aim at Office, Microsoft’s cash cow. And yet Microsoft just agreed to spend around $1 billion to buy Anthropic private shares, and plans to pour billions more into Azure. The company it invested in is now encroaching on its territory. The market is pricing in the threat before a single customer has switched over.
Evercore reiterated its Buy rating on Wednesday, saying Microsoft is embedded in the infrastructure. I’m not buying the dip just yet; I’m watching the close. Can it hold 518.20, or was this just a two-day spike? A break below that level would confirm that model makers are eating into the application layer.