Microsoft drops after UBS analysts warn of weakness in the cloud
- Shares of Microsoft dropped during a broader tech rally Wednesday after UBS downgraded the stock to neutral from buy.
- UBS analyst Karl Keirstead said the latest round of field checks into the business lowered the bank’s confidence in the stock.
- Keirstead said Azure is facing “steep growth deceleration.”Microsoft shares sank almost 5% on Wednesday while the broader tech market rallied after analysts at UBS said the software company faces weakness, particularly in the cloud.Analyst Karl Keirstead downgraded Microsoft to neutral from buy, writing that the latest round of field checks into the business lowered the bank’s confidence in the stock. Keirstead pointed to concerns at Azure, Microsoft’s cloud computing platform, and Office 365, the company’s family of productivity software.