Why Microsoft’s Misfires Could Create a Contrarian Opportunity in MSFT Stock

Tech juggernaut Microsoft (MSFT) hasn’t exactly enjoyed an auspicious start to the new year. While the company’s software products represent must-haves in the academic and professional ecosystems, MSFT stock has failed to live up to its reliable self. As evidence, we can look to the Barchart Technical Opinion indicator, which currently rates shares as a 40% Sell. Still, there might be a contrarian opening for the adventurous.

Looking at a quick fundamental recap, MSFT stock arguably lost a lot of its appeal due to Microsoft and OpenAI revising their partnership. This move effectively ended the former’s exclusive hold on OpenAI’s technology. As a consequence, OpenAI now has greater freedom to sell its artificial-intelligence-based solutions to Microsoft’s biggest rivals. It also exposed potential dependency concerns that force MSFT to be value-adjusted.