Rothschild & Co Redburn Downgrades Amazon and Microsoft to Neutral on Generative AI Concerns
ByAinvest
Tuesday, Nov 18, 2025 5:48 pm ET1min read
AMZN--
MSFT--
Rothschild & Co Redburn downgraded Amazon and Microsoft to neutral from buy rating, citing the high cost of developing generative AI and the overstated effect of AI on cloud-computing business growth. The firm previously maintained an "above-consensus bullish view" on the stocks. Analyst Alex Haissl said that the capital intensity needed to develop Gen-AI is nearly three times higher than cloud computing in its early days, and that prices would need to rise materially to make financial sense.
Stay ahead of the market.
Get curated U.S. market news, insights and key dates delivered to your inbox.
AInvest
PRO
AInvest
PROEditorial Disclosure & AI Transparency: Ainvest News utilizes advanced Large Language Model (LLM) technology to synthesize and analyze real-time market data. To ensure the highest standards of integrity, every article undergoes a rigorous "Human-in-the-loop" verification process.
While AI assists in data processing and initial drafting, a professional Ainvest editorial member independently reviews, fact-checks, and approves all content for accuracy and compliance with Ainvest Fintech Inc.’s editorial standards. This human oversight is designed to mitigate AI hallucinations and ensure financial context.
Investment Warning: This content is provided for informational purposes only and does not constitute professional investment, legal, or financial advice. Markets involve inherent risks. Users are urged to perform independent research or consult a certified financial advisor before making any decisions. Ainvest Fintech Inc. disclaims all liability for actions taken based on this information. Found an error?Report an Issue
Comments
No comments yet