u/Ill-Warning-596 ·
Reddit — r/stocks
· April 20, 2026 at 19:09
· ⬆ 51 pts
· 💬 52 comments
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AI Summary
Summary
The author questions Microsoft's massive capital expenditures on AI, citing anecdotal evidence that Copilot is inferior to competitors like Claude and Gemini.
The post highlights MSFT's significant underperformance compared to the NASDAQ over the past year, leading the author to hesitate on long-term investment.
Quality assessment: Speculation and noise. The author relies on personal/anecdotal product reviews and basic trailing returns rather than deep financial or fundamental analysis.
Score51
Comments52
Upvote %80%
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Feels like they are going to get punished more come the earnings. Not sure where they're spending their Capex at this point... Any news that I missed may give me a reason to believe their capex is justified?
Honestly, Copilot... I was told a bunch of companies are asking employees to use it, but they'd either use Claude or Gemini at the very least. Even for myself I never thought of using Copilot as an alternative because it's so buns imo. Are they even spending their large ass capex to improve this or it's getting the Bethesda/Zenimax abandonment?
1 Year NASDAQ as of 4/20/26 \~ 45.5%
1 Year MSFT as of 4/20/26 \~ 13.42%
I was thinking of maybe investing in it, but even as a long-term, I don't know, maybe there are better alternatives?
MSFT has underperformed the NASDAQ (13.4% vs 45.5%) over the last year while spending heavily on Capex. Copilot is perceived as an inferior product compared to alternatives, meaning the massive AI investments may not yield expected returns or justify the spend. Avoid MSFT for now as there are likely better alternatives in the market until Capex is justified. Copilot improves significantly, or enterprise lock-in forces adoption regardless of product quality.
This Reddit post, published April 20, 2026,
features u/Ill-Warning-596
discussing MSFT.
1 trade idea extracted by AI with direction and confidence scoring.