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BullDigest's May 5 Pre-Market Summary of Microsoft Corporation

  • 8 hours ago
  • bulldigest.com
  • Keywords: Pre-Market, Summary, Microsoft Corporation

Check out BullDigest's May 5 Pre-Market Summary of Microsoft Corporation. We provide a summary of the key news before the market opens.

Pre-Market SummaryMSFTsentiment_dissatisfied

Estimated market influence

Microsoft

Microsoft

Negativesentiment_dissatisfied
Analyst rating: Strong buy

Shutting down services like Skype and changing policies for Authenticator which may confuse users and lead to loss of trust.

Skype

Negativesentiment_dissatisfied
Analyst rating: N/A

Official shutdown, leading to potential data loss and user migration issues.

Context

Business Insights and Market Implications Summary

Microsoft Authenticator & Edge/AI Developments

  • Authenticator App Changes: Microsoft will discontinue password autofill in the Authenticator app starting June 2025. Users must migrate to Edge's built-in password manager or a third-party solution by August 1, 2025, with data export options available until that date.
  • Skype Shutdown: Skype services officially ceased on May 5, 2025, with users encouraged to transition to Microsoft Teams Free. Data migration is supported for certain chat types, but some conversations will not be transferred. Paid subscriptions continue until April 3, 2025.

Windows and Surface Innovations

  • Windows 11 Update: The 24H2 update auto-downloads on eligible devices, though users cannot cancel the process.
  • Surface Laptop 13″ Release: Microsoft is launching a redesigned 13-inch Surface Laptop with a PixelSense LCD touchscreen, supporting Surface Pen input. It features two USB-C ports, one USB-A, and a headphone jack, with up to 23 hours of battery life.

Xbox Pricing Adjustments

  • Price Hikes: Xbox Series X/S consoles will see price increases up to $130, along with hikes for controllers and first-party games (now $80). The Xbox Game Pass remains unchanged.

AI Market Growth and Competition

  • India's AI Ambitions: India allocated ₹10,372 crore to develop a homegrown LLM akin to ChatGPT. Challenges include high computational costs and limited Indian language data.
  • Global AI Spending Projection: UBS predicts a 60% YoY increase in global AI spending to $360 billion in 2025, rising to $480 billion by 2026. The market is expected to diversify, with the "Big 4" (Microsoft, Amazon, Alphabet, Meta) share declining from 58% to 52%.

Regulatory and Market Dynamics

  • EU Compliance: Microsoft adheres to EU regulations, including unbundling Teams from Office software.
  • Co-op Data Breach: Co-op reported a cyberattack exposing customer data, highlighting cybersecurity risks.

Big Tech Earnings Outlook

  • Strong Performance: Despite shifting trade policies under President Trump, Big Tech companies maintained strong financial outlooks in their latest earnings reports.