Microsoft Drops 3.2% to $381.25; Analyst Warns Shareholders to Sell on Next Rally

According to Barron's, Renaissance Macro Research analyst Kevin Dempter recommended that Microsoft (MSFT) shareholders sell on the next rally, with the stock dropping 3.2% to $381.25 on Wednesday. Dempter warned that software stocks are responding poorly to overbought conditions and that a large head-and-shoulders pattern is forming, signaling a potential trend reversal. The stock has declined nearly 5% since March 12, when Barron's recommended it as the company faces investor scrutiny over large AI capital expenditures. Notably, 59 of 62 research institutions tracked by FactSet rate Microsoft as a buy or outperform, with none recommending a sell.
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