Microsoft’s Dour Outlook Raises Red Flags for Tech Sector

Microsoft’s Dour Outlook Raises Red Flags for Tech Sector
Microsoft signage at the company's headquarters in Redmond, Washington on Jan. 18, 2023. Matt Mills McKnight/Reuters
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Microsoft Corp.’s lackluster quarterly outlook points to more gloom ahead for the tech sector, analysts said, after the tech bellwether warned that its customers were cautious about spending in a turbulent economy.

The warning from Microsoft, the second most valuable U.S. company, came after a steep fall in client spending prompted tech heavyweights from Amazon.com Inc. to Meta Platforms to slash jobs and save cash.