Tech Stocks Slide as Wall Street Questions AI Profitability
Redburn downgrades spark a selloff in Microsoft and Amazon as fatigue sets in.
A wave of pessimism swept through global markets on Nov 18, 2025, as investors scrutinized the widening gap between massive artificial intelligence spending and tangible corporate profits. The Nasdaq 100 retreated 1.57%, driven by sharp declines in the very companies spearheading the AI revolution.
The Redburn Downgrade
The catalyst for the selloff was a scathing report from Rothschild Redburn, which downgraded both Amazon (AMZN) and Microsoft (MSFT) to "Neutral." The analysts argued that while cloud revenue is growing, the astronomical capital expenditures (Capex) required to build data centers are compressing margins. * Amazon (-4.43%): The stock suffered its worst …
Archive Access
This article is older than 24 hours. Create a free account to access our 7-day archive.