Why did Microsoft shares drop by $360 billion?

Microsoft shares dropped significantly due to concerns about slowing cloud sales and delayed returns on its substantial AI investments, leading to a 10% stock price decrease and a $360 billion loss in market capitalization.

What is Microsoft's capital expenditure during the quarter?

Microsoft's capital expenditure surged by 66% during the quarter, reaching $37.5 billion.

What are the concerns regarding Microsoft's AI investments?

Investors are concerned about the potential for Microsoft to achieve a strong return on investment from its massive AI investments and the current slowdown in its cloud business growth.

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Microsoft's $360B Plunge: AI Hopes Dim?

30 Jan

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Summary

Microsoft shares dropped 10%, losing $360 billion in market cap.
The stock's largest single-day fall occurred since March 2020.
Concerns over slowing cloud sales and AI investment returns emerged.

Microsoft experienced a severe market downturn on Thursday, with its stock price plummeting by 10%. This significant sell-off resulted in a loss of approximately $360 billion in market capitalization, representing the company's worst single-day performance since March 2020.

The sharp decline was attributed to concerns arising from the company's latest quarterly earnings report. Investors expressed worries about a slowdown in the growth of Microsoft's cloud business and a perceived delay in realizing returns from its considerable investments in artificial intelligence.

Analysts noted that Microsoft's capital expenditures surged by 66% to $37.5 billion during the quarter. Simultaneously, the growth rate of its Azure cloud service showed a deceleration compared to the previous quarter, intensifying investor apprehension.