Some Investors Predict Slowed Growth

Earlier this month, two investment firms – UBS and Guggenheim – downgraded Microsoft.

UBS downgraded Microsoft’s stock from buy to neutral, according to multiple reports. The firm expected that Microsoft was not just plagued by macroeconomic factors, predicting Office growth to moderate and Azure growth deceleration worse than expected.

Meanwhile, Guggenheim downgraded Microsoft stock down to sell, according to multiple reports.

The firm predicted that the slowdown in Microsoft’s small and midsized businesses (SMB) customers would be more pronounced than expected as the economy turned and that Microsoft’s security offerings were showing weakness.

Guggenheim downgraded other tech vendors including Cloudflare, Splunk, Zscaler and Palo Alto Networks.