The S&P 500 (^GSPC 0.17%) slipped 0.17% to 6,969.01 and the Nasdaq Composite (^IXIC 0.23%) fell 0.72% to 23,685.12 on tech weakness today. The Dow Jones Industrial Average (^DJI 0.25%) inched up 0.11% to 49,071.56, holding near record territory.
Three mega-cap tech companies reported earnings on Wednesday, and the market's verdict was swift and brutal for one company while two Magnificent 7 members received stamps of approval.
Microsoft beat estimates on the top and bottom lines in its Q2 report, but the stock still fell double digits. Investors seemed to be worried about ongoing capital expenditures to fund AI infrastructure, as well as slowing growth in the consumer business, and declining margins.
Microsoft (MSFT) stock has dropped 10% in a single day. The recent decline indicates renewed worries about sluggish Azure cloud growth, increasing AI costs, and dependency on OpenAI.
Microsoft Corporation stock experienced a steep post-earnings selloff, despite delivering reasonable fiscal Q2 results and surpassing Azure guidance. MSFT's AI strategy, including Maia chip advancements and deep OpenAI integration, underpins a compelling long-term TAM expansion opportunity. Concerns over CapEx growth and AI monetization linger, but management affirms hardware investments are la...
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