So, Microsoft's stock is bouncing around again. Big deal. Seems like every other day there's some "analyst" upgrading or downgrading it based on the latest AI buzzword. Wake me up when it actually does something besides burn cash.
Let's be real: this whole AI thing feels like the dot-com bubble all over again. Everyone's throwing money at it, but nobody can actually explain how it's going to make them rich. We got Jefferies out there saying Copilot adoption is "accelerating." Accelerating where exactly? Into a black hole of expenses? They're acting like the market is in the "1st half of the 1st inning." Give me a break. It feels more like the 9th inning with two outs and the bases loaded for the Grim Reaper.
And then you got this clown from Rothschild & Co Redburn downgrading Amazon and Microsoft, saying AI is way more costly than people think. Shocker. Apparently, these GPUs cost a fortune and don't even generate that much revenue. Who could have possibly seen that coming? Oh right, anyone with half a brain. As reported by Business Insider, one analyst believes Amazon, Microsoft Stocks Downgraded, Can't Hit Expected Returns: Analyst.
Speaking of brains, what's the deal with these "analysts" anyway? They all seem to be singing from the same hymn sheet, just regurgitating whatever PR garbage Microsoft feeds them. "Oh, Copilot is gaining traction!" "Microsoft is capturing market share!" Yeah, sure they are. And I'm dating a supermodel.
Now, here's where things get really interesting. Apparently, Microsoft might be jacking up the price of its Xbox because of the AI boom. The AI boom? So, because everyone's buying up GPUs to train their fancy chatbots, gamers have to pay more for their consoles? That's like blaming your dog for eating your homework. Makes absolutely no sense.
This "tech leaker" says Microsoft didn't plan ahead for the AI boom. Seriously? A multi-trillion dollar company didn't see this coming? Either they're incompetent, or they're lying. Or, offcourse, both. I'm betting on both. And Sony gets a free pass, apparently? Color me skeptical. Microsoft Stock (MSFT) Up on Reports of an Xbox Price Increase, according to TipRanks.
It's probably just good old-fashioned corporate greed. Jack up the prices, blame it on AI, and watch the profits roll in. Easy peasy.
Oh, and let's not forget the Fed. Some guy named Christopher Waller wants to cut interest rates because he's worried about the labor market. How does that help Microsoft? Lower rates make "long-term growth names" more attractive. Translation: it makes it easier for them to borrow money and keep the AI hype train rolling.
But what happens when the music stops? What happens when investors realize that AI isn't the golden goose they thought it was? What happens when these companies can't pay back all that debt?
I'll tell you what happens: another financial crisis. And guess who's going to get screwed? Not the executives with their golden parachutes. It's going to be the average Joe, the guy who just wants to play some video games without having to sell his kidney to afford an Xbox.
It's all smoke and mirrors, folks. Microsoft's stock might be up today, but it's only a matter of time before the whole house of cards comes crashing down. Mark my words. Or don't. What do I know, anyway?
