As previously reported, Oppenheimer downgraded Microsoft to Perform from Outperform and removed the firm’s prior price target. The firm believes consensus estimates for revenue and EPS are too high, calling OpenAI losses, which could be in the $2B-$3B range in FY25, its “primary concern.” Enterprises have been slow to adopt AI and associated revenues are likely to disappoint, the analyst tells investors. Given that Microsoft is investing in “once-in-a-generation” technology, the firm does not believe expanding margins will be a short-term priority, the analyst added.