Big Tech Downgraded: Microsoft, Amazon Ratings Cut 11/18/25
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Stock futures were falling notably today as investors continue to shed risk assets, particularly in the artificial intelligence sector, amidst fears that the Federal Reserve may not cut interest rates next month. Home Depot, the largest U.S. home-improvement retailer, took a significant hit, falling 3.9% after reporting third-quarter adjusted earnings that missed analysts’ estimates. The company also slashed its full-year outlook, signaling tougher times ahead for the retail sector. This cautious sentiment also weighed on AI-related stocks like Nvidia, which has finished lower in three of the past five trading sessions and has fallen nearly 8% just in November alone.
Shifting gears to some positive news in the tech space, Cisco Systems, the networking technology giant, recently saw its price target boosted by BofA Securities. On November 13th, BofA raised its target on Cisco shares to $95 from $85, while reiterating a “Buy” rating. The firm specifically highlighted strong orders in AI networking and robust demand for campus refresh cycles as key drivers for their optimism. This upgrade suggests that despite broader AI stock wobbles, specific companies like Cisco are still benefiting from foundational infrastructure demand in the artificial intelligence build-out. Investors will be watching if this positive sentiment translates into sustained momentum for CSCO.
In another development impacting the big tech landscape, Microsoft and Amazon, two titans in cloud computing and e-commerce, have both seen their ratings cut to “neutral” from “buy” by Rothschild & Co Redburn. This is a notable move, as Redburn’s Alexander Haissl broke ranks with the vast majority of analysts, over 90% of whom hold buy-equivalent recommendations on these stocks. The downgrade comes as investors continue to retreat from AI-related stocks amid growing unease over what many perceive as stretched valuations. This analyst’s contrarian call on these highly-valued tech leaders could signal increasing skepticism, even if it’s currently a minority view.

Keywords: AI networking, AI stocks, AMZN, Amazon, BofA Securities, Buy rating, CSCO, Cisco Systems, HD, Home Depot, MSFT, Microsoft, NVDA, Neutral rating, Nvidia, Q3, Redburn, campus refresh, cloud computing, downgrade, e-commerce, earnings miss, interest rates, networking technology, outlook cut, price target, risk assets, stock futures, stretched valuationsThe post Big Tech Downgraded: Microsoft, Amazon Ratings Cut 11/18/25 first appeared on Rapid Money Radio.

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