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News  ›  Investing.com

Microsoft Stock Sinks on AI Spending — Yup, You Heard That Right

Investing.com Logo Investing.com By Dave Kovaleski
Microsoft Stock Sinks on AI Spending — Yup, You Heard That Right

Microsoft reported strong Q1 earnings with significant cloud and AI growth, but initial stock reaction was negative due to concerns about high capital expenditures in AI infrastructure.

Insights
RGTIW   negative

Described as a pure-play quantum computing company with high risk of potential failure and stock price dropping to zero


MSFT   neutral

Despite initial stock drop, the company showed strong financial performance with 26% cloud revenue growth, 40% Azure revenue increase, and a $392 billion remaining performance obligation pipeline