**Investors Worried as Microsoft’s AI Spending Faces Scrutiny Amid Teams Overhaul**

Amid growing concerns from investors, tech giant Microsoft is under close observation for its hefty spending on artificial intelligence (AI). Despite being a leading name in the AI industry, largely due to its connection with OpenAI's ChatGPT, Microsoft’s own AI initiatives are failing to meet investor expectations. Shares of Microsoft saw a slight dip during Monday afternoon trading, reflecting apprehension among shareholders about the company’s return on investment in AI.

One of Microsoft's AI products experiencing lukewarm reception is the $30 per month Copilot assistant, which has faced slow adoption rates. This has prompted analysts at Morgan Stanley to note a "wall of worry" surrounding Microsoft's upcoming earnings. Investors are particularly concerned that the substantial investment in AI has not yet yielded the anticipated returns. Furthermore, this significant push into AI has complicated the task of estimating Microsoft’s performance for the current quarter, making comparisons with past quarters more challenging.

Beyond its AI endeavors, Microsoft continues to innovate with its widely-used Teams communication program. The company is introducing new features aimed at enhancing user experience by integrating chats and channels into a unified package. According to reports from The Verge, this update will roll out shortly, with threaded conversations expected to be available by mid-2025. These changes aim to make the interface more user-friendly, allowing Teams users to organize their conversations more effectively. Users will have the flexibility to keep chats and channels separate or create custom sections to group conversations together.

Despite the current uncertainties, Wall Street analysts maintain a positive outlook on Microsoft stock. With 27 recommending a 'Buy' and three advising a 'Hold' over the past three months, the consensus rating remains strong. Following a notable 27.72% increase in its share price over the last year, the average price target for Microsoft’s stock is $503.15 per share, suggesting a potential upside of 17.66%.