Microsoft short interest hits decade high before Q2 earnings as AI spending worries mount
Short interest in Microsoft shares has reached its highest level in a decade ahead of the company's Q2 earnings report, with bearish investors holding their positions without any notable short covering. The pessimism centres on concerns that Microsoft's heavy spending on AI infrastructure is not yet translating into proportional returns. The upcoming earnings release is expected to be a key test of investor confidence in the company's AI strategy.
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