On June 22, U.S. stocks opened lower, with the Nasdaq and S&P 500 sliding as expectations for Fed rate hikes intensified. CME FedWatch data show the probability of two rate hikes this year rose to 36.5%, while the odds of three hikes reached 16.8%, both sharply higher than a week earlier. Tech shares led declines, with Alphabet and Amazon down more than 4%, and Microsoft and Meta Platforms down more than 2%.

Investor Paul Franke argues Microsoft’s 23x P/E is well above comparable SaaS peers such as Adobe at 11x, despite similar growth prospects. He also says heavy AI-related capital spending is pressuring free cash flow, leaving a 2.6% FCF yield that he views as unattractive versus 4% CPI and U.S. Treasury yields, according to the article. Franke rates the stock Sell and expects shares could drop into the $300 range. Wall Street maintains a Strong Buy consensus with an average 12-month price target of $557.64.