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Explained in plain English

Why do shares drop?

Share prices often drop when investors worry about a company's future profits. For Microsoft, the recent job cuts and falling share value suggest investors are concerned about rising AI costs and the company's overall financial health, leading them to sell shares and push the price down.

Stories that explain this

Microsoft cutting 4,800 jobs as AI costs rise

Questions this opens up

Who buys shares? What are profits? What is a share?

This explainer came from a news story

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