Ahead of Microsoft Corp’s quarterly results, Deepwater Asset Management’s managing partner Gene Munster argued that the company’s long-term AI strategy matters more than near-term earnings, stating on X, “MSFT’s earnings don’t matter because their battle with the bots is just beginning.” Munster noted shares could still rise 7% (the implied volatility) but said that misses the bigger point. He identified two major headwinds over the next five years: first, Microsoft must transition its core software business from per-seat subscriptions to usage-based pricing as AI becomes embedded, writing “New business model = uncertainty = low multiple.” Second, he warned AI agents could fundamentally change software interaction, as users may complete tasks through bots that remove the need for an abstraction layer. Although Microsoft remains deeply embedded across enterprises, Munster cautioned that AI could reshape business workflows faster than expected. Wall Street expects Microsoft to report fourth-quarter revenue of $87.61 billion and EPS of $4.23, up from $76.44 billion and $3.65 a year ago. Microsoft shares closed Tuesday at $393.35, up 1.09%, and gained another 0.42% to $395.01 in after-hours trading; the stock is down 16.8%.