Microsoft Faces ETF Drop over 2.4% and Coltan Supply Chain Allegations
MSFT•Hedge funds sold out Magnificent Seven including Microsoft, cutting positions before SpaceX’s IPO and driving over a 2.4% drop in the related ETF since June 5. A report alleges coltan from DRC rebel-linked M23 is entering Microsoft’s supply chain despite certification programs, raising potential reputational and regulatory risks.
1. Hedge Fund Selling Pressure
JPMorgan data shows hedge funds reduced Microsoft positions as part of a broader Magnificent Seven sell-off ahead of SpaceX’s IPO, contributing to a greater than 2.4% decline in the ETF tracking these stocks since June 5.
2. Supply Chain Mineral Allegations
A recent probe indicates coltan linked to the DRC’s M23 rebel movement is infiltrating Microsoft’s supply chain despite industry certification schemes, potentially exposing the company to reputational damage and regulatory scrutiny.
