Stock Movers Microsoft Drops, Home Depot Falls, Honeywell Sinks on Ratings Downgrade
Nov 18, 2025
Denitza Sokova, a Bloomberg reporter and market analyst, dives into the recent turbulence in the stock market. She discusses the surprising downgrades of Microsoft and Amazon by Rothschild & Co, criticizing the overhyped generative-AI narrative. Home Depot is also in the spotlight as it cuts its earnings forecast, impacted by cautious consumer spending. Lastly, a downgrade for Honeywell highlights concerns over its spinoff strategy and disappointing growth prospects, signaling potential challenges ahead.
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AI Hype Faces Skepticism
- Redburn downgraded Microsoft and Amazon to neutral, arguing the generative-AI bull case is weakening.
- The analyst sees the industry's
Home Depot Lowers Consumer Outlook
- Home Depot cut full-year EPS guidance and warned unsteady consumers are pausing big-ticket home purchases.
- The company now expects adjusted EPS to decline about 5% year-over-year.
Honeywell Downgrade Over Spin-Off Risks
- Bank of America downgraded Honeywell to underperform, fearing its spinoff strategy will disappoint investors.
- BofA expects the shares to lag if Honeywell fails to deliver earnings growth next year.