Microsoft and Amazon Are Downgraded as Redburn Breaks Ranks With Peers

The bull case for generative artificial intelligence is no longer clear and hyperscalers should be approached with caution, according to an analyst who downgraded two of Wall Street’s most-favored tech giants.

Microsoft Corp. and Amazon.com Inc. saw their ratings cut to neutral from buy on Tuesday, as Rothschild & Co Redburn’s Alexander Haissl downgraded the stocks for the first time since initiating coverage in June 2022, according to data compiled by Bloomberg. Shares of both firms traded more than 2% lower in New York.