Major Stakeholder Sells Microsoft Shares Amid Questions Over AI Product Growth

A significant divestment by a major shareholder and emerging questions about the commercial adoption of certain artificial intelligence products have created headwinds for Microsoft's stock. These developments have captured the attention of market participants, contributing to recent share price weakness.

The Bill & Melinda Gates Foundation has substantially reduced its equity holding in Microsoft, according to recent filings. During the third quarter, the foundation sold approximately 17 million shares, a move that represents about 65% of its total position in the company. The transaction was valued at roughly $9 billion.

This sale forms part of the foundation's broader, long-term operational strategy. Its charitable grantmaking is scheduled to increase to an annual $9 billion by 2026. Furthermore, the foundation intends to fully expend its endowment by 2045 to further its philanthropic goals. The reduction also serves to mitigate concentration risk stemming from what was previously a substantial single-stock position, accounting for nearly one-third of the entire portfolio.

While the foundation began gradually decreasing its Microsoft stake in late 2023, the scale of this latest transaction is unprecedented. Market analysts have interpreted the move not as a loss of faith in the tech giant's prospects, but rather as a strategic rebalancing of the foundation's assets.

Should investors sell immediately? Or is it worth buying Microsoft?

Sales Targets for AI Platform Reportedly Missed

Concurrently, reports have surfaced indicating that several internal sales teams failed to meet their growth objectives for Azure Foundry in the last fiscal year. This platform is designed to allow businesses to develop and manage AI agents, but its market uptake has apparently fallen short of internal expectations.

Microsoft has pushed back against this characterization, stating that overall sales quotas for its suite of AI products have not been lowered. Nonetheless, the reports highlight broader industry challenges with AI adoption. For instance, private equity firm Carlyle reportedly scaled back its expenditures on similar tools after they failed to reliably integrate data from disparate sources.

Technical Chart Points to Consolidation Phase

The confluence of these factors has pressured the share price, which declined more than 2% following the news. From a technical analysis perspective, the stock now trades approximately 12% below its peak reached in October. It is currently testing a key technical level, approaching its 50-day moving average near €435.58. The Moving Average Convergence Divergence (MACD) indicator is signaling a bearish divergence, which technical traders often interpret as waning upward momentum.

The near-term outlook suggests a period of consolidation is likely. The significant institutional selling pressure, coupled with operational questions surrounding specific AI products, is expected to limit upside potential in the immediate future. The 50-day moving average may provide a level of support, but a sustained breakout to new highs appears improbable for now. Investors are anticipated to await clearer signals regarding the pace of enterprise AI adoption before making significant new commitments to the stock.