Microsoft shares dip as CrowdStrike announces stock split and earnings surge

Microsoft Corp. shares fell about 3.2% on Monday, trading as low as $367.07 after analyst downgrades and concerns over AI competition and pending shareholder class-action lawsuits. The decline follows the company's recent announcement of a 20‑year power agreement with Chevron for a West Texas AI data center and comments by CEO Satya Nadella on broader AI access.

CrowdStrike Holdings reported strong Q2 results, with revenue of $1.39 billion up 26% year‑over‑year and earnings per share of $1.10, a 51% increase. The cybersecurity firm also approved a 4‑for‑1 stock split, set to take effect on July 2, and raised its net new annual recurring revenue guidance to 27.7% for the fiscal year. Institutional ownership remains high, with more than 71% of shares held by institutions.

Both developments highlight the contrasting market dynamics for major U.S. technology firms, with Microsoft facing pressure from AI pricing competition and legal headlines, while CrowdStrike leverages robust growth and a stock split to attract retail investors.