Since June 1, shares of Microsoft (MSFT) have lost over $70 a share. Technically, MSFT stock dropped every single day through June 11. The software firm, seen as having a wide lead in the artificial intelligence space by investing in OpenAI’s ChatGPT in 2022, is not a market favorite.
After Alphabet’s (GOOG) Gemini AI found a fit in search, ChatGPT’s moat eroded. Doubts are rising that Microsoft will monetize its CoPilot AI by more than 5% of its total user base.
Anthropic (ANTHRO) also outmaneuvered ChatGPT. The U.S. government used its AI in its bombing of Iranian targets. The firm also advertised itself as having AI so good that its solution could detect software security holes. That sent SaaS stocks like CrowdStrike (CRWD) and Autodesk (ADSK) lower.
Last night, Adobe (ADBE) posted yet another quarter of strong results. It earned $5.96 a share, non-GAAP on revenue of $6.62 billion (+12.8% Y/Y). Still, the non-GAAP EPS excluded stock-based compensation worth $534 million. This is up from $481 million last year.
ADBE stock lost 6.25% on Thursday and will open down by at least 7% this morning. Its CFO will leave after Marvell Technologies (MRVL) hired Willem Meintjes. In effect, after Nvidia (NVDA) CEO Jensen Huang said that MRVL stock is worth $1 trillion, it helped empower the firm. This led to the Adobe executive (software) moving to the semiconductor sector.
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