Insider Purchase Alert: $2 Million Stock Buy in the “Magnificent Seven” – Is It Time to Invest?

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Key Points

  • Microsoft’s stock has fallen 30% since its all-time high in July 2023.

  • Despite its AAA credit rating, the company is facing challenges amid market fears over AI disruptions.

  • On February 18, 2023, Microsoft director John W. Stanton purchased $2 million worth of stock, acquiring 5,000 shares at an average price of $397.

Microsoft (NASDAQ: MSFT) has seen a significant 30% decline in its stock price since reaching an all-time high in July 2023, despite holding a AAA credit rating. Concerns regarding potential disruptions from emerging artificial intelligence companies have weighed heavily on the software giant and other hyperscalers in the market.

On February 18, 2023, Microsoft director John W. Stanton bought $2 million worth of stock, increasing his holdings by 6.1%. This move comes as Microsoft also maintains a 27% stake in OpenAI and has committed substantial investments in AI rival Anthropic, indicating a strategic positioning against AI disruption. Microsoft is expected to maintain a competitive edge with its own AI ventures and partnerships with leading AI firms.

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