Microsoft stock sinks as new AI rival targets $27 billion business

What happened

Anthropic unveiled a spreadsheet tool that might compete with Microsoft’s Excel, a long-standing productivity app used by individuals and businesses. Microsoft is adding AI features to its existing software, while Anthropic has not shown it can match Excel’s reach or replace it across large enterprises.

Confirmed

Global impact / market context

If users move spreadsheet work to competing AI tools, Microsoft could face pressure on demand or pricing for productivity software, affecting revenue. Conversely, adding AI inside apps customers already use could help Microsoft retain them, making adoption and customer switching important to its business outlook.

Analyst inference

The article connects the share decline to a new competitive threat, but also notes that Anthropic has not demonstrated Excel-scale reach. For investors, the key business question is whether AI expands paid software demand or shifts work away from established products and weakens their pricing power.

Analyst inference

What to watch

1. Watch for evidence that users and businesses adopt Anthropic’s spreadsheet tool for real work, especially whether large enterprises replace Excel rather than simply test another option. Analyst inference
2. Track Microsoft’s rollout of AI features within its existing software and whether those features help retain customers or support demand for its productivity products. Analyst inference
3. Look for future signs of changes in software demand or pricing; the article identifies these as concerns but provides no evidence yet that either has changed. Confirmed

Evidence

• gurufocus.com