Microsoft Downgraded Amid AI Concerns; Boeing Faces 737 MAX Delivery Delays Due to Wiring Issue

Microsoft's stock rating has been downgraded from a 'buy' to a 'hold' equivalent, reflecting concerns over its artificial intelligence (AI) and cloud computing divisions. The company's AI business, particularly its Copilot feature, and its Azure cloud computing unit are perceived as underperforming compared to industry peers. Despite these challenges, Microsoft is projected to generate over $70 billion in free cash flow in both its 2026 and 2027 fiscal years.

In the aviation sector, Boeing has announced delays in the delivery of some 737 MAX aircraft due to a wiring flaw identified during production. The issue involves small scratches on wires caused by a machining error. Boeing stated that the problem does not affect the safety of in-service 737 MAX airplanes, which can continue to operate safely. The company expects some near-term delivery delays that may affect first-quarter deliveries but does not anticipate an impact on its year-end delivery targets. Production of new 737 MAX airplanes continues at the existing rate.