Bloomberg Intelligence Microsoft Slips on Report of Lower Demand for Some AI Tools
Dec 3, 2025
Anurag Rana, a tech analyst, discusses Microsoft's AI sales struggles and competitive positioning, highlighting how cloud hosting is key to AI revenue. Mary Ross Gilbert talks about Macy's disappointing earnings forecast and the impact on stock performance despite improving in-store experiences. Lily Meier reveals Dollar Tree's success in appealing to budget-conscious shoppers with a raised profit outlook. Deborah Aitken shares insights on luxury goods, focusing on emerging trends and the impact of tariffs on pricing strategies.
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AI Infrastructure Strong, Copilot Sales Mixed
- Microsoft shows no slowdown in AI infrastructure but faces mixed demand for higher-priced Copilot products.
- Anurag Rana says implementation time and non-AI tech spending weakness explain uneven enterprise uptake.
ChatGPT Hosting Boosts Microsoft Cloud
- Microsoft captures large cloud revenue by hosting ChatGPT and related applications.
- Rana notes much of the early AI revenue flow benefits Microsoft's cloud first.
Hype Versus Adoption For New AI Products
- Salesforce's recent product launches had high initial enthusiasm but slower adoption than demos suggested.
- Rana links that to enterprise spending weakness and slower hiring outside AI companies.