Microsoft closed at $413.27 (-0.08%) as investors weighed Melius’ AI spending risks downgrade against bullish analyst commentary. S&P 500 fell 0.33% to 6,942 and Nasdaq Composite dropped 0.59% to 23,102. Apple closed at $273.68 (-0.34%) and Alphabet ended at $318.58 (-1.77%), showing pressure on tech stocks.

Analysts are concerned about Microsoft’s high capital spending plans. Melius downgraded the stock to “hold” with a $430 price target due to increased AI capex and cash flow risk. Stifel analyst Brad Reback also downgraded the stock by nearly 30%. Despite this, Azure and cloud services revenue grew 39% in Q2.

Considerations before buying Microsoft stock: Motley Fool’s Stock Advisor did not include Microsoft in its list of top 10 stocks. The top 10 stocks identified by the team could provide significant returns in the future. Stock Advisor has a total average return of 918%, outperforming the S&P 500.

Read more at Nasdaq: Stock Market Today, Feb. 10: Microsoft Stock Slips on Melius Downgrade Over AI Spending Risks