Microsoft stock is flat the day after sinking 10%. Here’s why
Microsoft’s stock was largely flat on Friday, after the stock saw its biggest daily decline since 2020, sliding 10% Thursday after it reported earnings.
Shares fell despite the company’s second-quarter earnings beating analyst revenue expectations.
Like other hyperscalers, Microsoft has invested huge sums in its AI infrastructure buildout. But Meta reported huge AI spending on the same day and its stock jumped 8%.
Why did Microsoft’s stock drop?
Investors latched onto the growth of Microsoft’s cloud computing platform Azure and other cloud services, which came in at 39% below StreetAccount’s 39.4% consensus. Those areas saw 40% growth in the fiscal first quarter.
The company’s CFO Amy Hood said that the cloud business’ results could have…
