Microsoft President Sold $20 Million in Shares After Post-Earnings Stock Slide

Microsoft Vice Chair and President Brad Smith sold 38,500 shares of company stock in two separate transactions on Nov. 3. (James MacDonald/Bloomberg)

Key Points

• Microsoft Vice Chair and President Brad Smith sold 38,500 shares in two transactions on Nov. 3, totaling approximately $19.97 million.
• Following the sales, Smith directly owned 461,596.76 Microsoft shares, valued at over $237 million based on Tuesday’s closing price.
• Microsoft’s stock is down 5% since its latest earnings report due to AI spending concerns.

Microsoft stock has continued to slide on the heels of its latest earnings report, and one top executive appears to be unloading shares.

A Form 4 filed with the Securities and Exchange Commission on Tuesday shows Vice Chair and President Brad Smith sold 38,500 shares of common stock in two separate transactions on Nov. 3.

The first sale was for 30,411 shares at an average price of $518.49 each, followed by a second sale of 8,089 shares for $519.21 apiece. In total, these came to roughly $19.97 million worth of company stock.

Following the transactions, Smith directly owned 461,596.76 shares of Microsoft stock, which was worth more than $237 million based on Tuesday’s closing price of $514.33. The amount includes fractional shares.

“This is part of an ongoing and periodic step to diversify,” a Microsoft spokesperson told Barron’s. “Brad also donated 10,000 shares to Microsoft’s Donor Advised Fund for future philanthropic giving, and that form will be filed shortly.”

Also on Nov. 3, the Big Tech firm said it planned to invest a total $15.2 billion in the United Arab Emirates by 2029 as part of an initiative to build its presence in the region.

Microsoft posted fiscal first-quarter earnings at the end of October. While shares remain up 21% this year, they suffered a blow over concerns about the company’s artificial intelligence spending. Shares are down 5% since last week’s report.

Smith’s sales also come amid a marketwide about-face on AI, fueled by concerns that hyperscalers—the owners of massive data centers—are expending too much capital in exchange for little, if any, return. The Nasdaq Composite dropped 2% on Tuesday, its worst day in nearly a month.

Microsoft’s latest earnings report shows it has doubled down on spending. Capex reached $34.9 billion in the quarter, exceeding expectations.

Smith is more than just a familiar face at Microsoft; he’s an outspoken advocate for AI. At a conference in May, Smith dubbed it the “next great general-purpose technology,” on par with electricity.

“As we look ahead, it’s almost certain that AI will be regarded by economists as the next great GPT,” Smith wrote in a 2024 blog post on Microsoft’s website. He said that “rapid technological change” would be inevitable in the coming years.

Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com