US EditionMicrosoft Shares Plummet 11%—Most Since 2020—After Slowing Cloud Growth
Microsoft's Azure revenue grew 39% but missed some estimates; AI-driven capital expenditures hit $29.8 billion, fueling concerns over near-term returns and pushing shares down 12%.
- During post-earnings trading on Thursday, Microsoft shares tumbled 12%, trimming about $357 billion from its market value to $3.22 trillion.
- Azure growth figures showed a 39% increase, down from 40% last quarter, while Microsoft warned that capital spending could reach up to $135 billion to expand AI data centers.
- Management highlighted allocation choices around GPUs and capacity, while Keith Weiss, Morgan Stanley analyst, said `one of the core issues` is faster capex and `maybe Azure is growing a little bit slower than we expected.`
- Tech indexes reacted unevenly as investors weighed capex and growth; the iShares Expanded Tech-Software Sector ETF tumbled 5% while the Nasdaq Composite index fell 0.7%, but Meta shares rallied more than 7%.
- On Feb. 4 and Feb. 5, Alphabet and Amazon report earnings, while analysts warn Microsoft could face challenges if cloud revenue falters and expect capex to stay high.
11 Articles
11 Articles
Why Microsoft's stock is plunging the most in nearly 6 years
Microsoft CEO Satya Nadella speaking at the World Economic Forum.Harun Ozalp/Anadolu via Getty ImagesMicrosoft is facing a brutal stock decline on Thursday. High AI spending and slowing Azure cloud growth dented investor confidence. Meta and Microsoft's diverging fortunes on Thursday illustrate how investors are thinking about the tech trade. Microsoft stock is getting crushed on Thursday. The negative post-earnings reaction stems from investors…
Microsoft suffered its biggest decline on Wall Street in almost six years after reporting record spending and a slowdown in the growth of cloud service sales.This combination of factors fueled the market's concern that the company's investments in artificial intelligence take longer than expected to bear fruit.How much does Microsoft lose on Wall Street TODAY January 29?Microsoft's shares drop 11.91 percent to $424.28, cut at 11:15 a.m., Mexico …
Microsoft (NASDAQ: MSFT) Stock Price Prediction for 2026: Where Will It Be in 1 Year
Key Points in This Article: Microsoft is dedicating significant capex to AI and cloud infrastructure in order to compete with other tech firms. Microsoft’s gaming segment grew 44% last year, providing significant revenue to complement its software, cloud and AI business lines. Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been c…
Microsoft Drops Amid Slowing Cloud Growth, Record Spending
Microsoft Corp. plunged the most in almost six years after reporting record spending and slowing cloud sales growth, fueling investor concerns that it could take longer than expected for the company’s AI investments to pay off.
Coverage Details
Bias Distribution
- 50% of the sources lean Left
Factuality
To view factuality data please Upgrade to Premium
