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Business Insider
202 days

Microsoft's AI business is booming, but not enough to soothe investors

1. Microsoft's Q2 earnings missed AI sales expectations. 2. Azure cloud sales grew 31%, slower than anticipated growth. 3. AI revenue run rate surpassed $13 billion, up 175% year-over-year. 4. CEO Nadella highlights ongoing AI innovation for future ROI. 5. DeepSeek's AI model release heightened investor scrutiny on spending.

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FAQ

Why Bearish?

Missed earnings expectations can dampen investor confidence, similar past scenarios have led to significant stock declines.

How important is it?

Earnings results and AI developments are critical to Microsoft's valuation.

Why Short Term?

Immediate market reactions to earnings reports often drive short-lived price movements.

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