Microsoft, Stock and cloud growth
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Microsoft's stock saw its biggest daily decline since 2020 on Thursday after investors were dismayed by its cloud computing business not growing enough.
The tech giant reported higher-than-expected spending on AI infrastructure while growth in its closely watched cloud business slowed.
Microsoft is shifting focus to fixing Windows 11 performance and reliability after months of buggy updates, boot failures, and growing user frustration.
MSFT stock decreased by 37.6% from a peak of $343.11 on 19 November 2021 to $214.25 on 3 November 2022, compared to a peak-to-trough drop of 25.4% for the S&P 500. Nevertheless, the stock fully bounced back to its pre-crisis peak by 15 June 2023.
Microsoft reports revenue of $81.3 billion for the October-December quarter, marking a 17% increase from the previous year.
By Deborah Mary Sophia, Aditya Soni and Stephen Nellis Jan 28 (Reuters) - Microsoft said on Wednesday it had spent a record amount on artificial intelligence in the last quarter and posted slower cloud-computing growth,
OpenAI and Microsoft have a reconfigured relationship. The software giant revealed just how much OpenAI is driving its RPO.
The company said on Wednesday that revenue in the most recent quarter was $81.3 billion, but its share price dropped more than 5 percent in after-hours trading.
Microsoft’s stock has plummeted 12% owing to a slight miss on revenue, showing how spooked investors are by the “spend now, profit later” AI market.
Shares of Microsoft plunged 12% and software stocks hit a bear market. The S&P 500 edged back from 7,000 as AI spending fears were rekindled.