Oppenheimer Downgrades Microsoft to 'Perform' on OpenAI losses; Goldman Sachs Lowers Price Target to $500; Meta Target Raised to $655

Oppenheimer has downgraded Microsoft Corporation (MSFT) to 'Perform', citing that expectations for the company were 'too high', particularly due to anticipated losses from OpenAI. Following this, Goldman Sachs also lowered its price target for MSFT to $500 from $515, while maintaining a 'Buy' rating. The adjustments reflect a shift in market sentiment regarding Microsoft's future performance amid rising AI-related capital expenditures. In contrast, KeyBanc raised its price target for Meta Platforms, Inc. (META) to $655 from $560, based on solid advertising market conditions and favorable currency movements. Additionally, Evercore ISI increased its price target for ServiceNow (NOW) to $950 from $850, with expectations of strong subscription revenue growth. The stock price targets for both Meta and ServiceNow indicate positive outlooks in their respective markets.