Microsoft’s Q2 Earnings Cause Stock Drop
Microsoft (NASDAQ: MSFT) reported its fiscal Q2 results on January 28, leading to a 10% decline in its stock, which now trades nearly 22% below its all-time high. Despite this, Microsoft’s Azure cloud computing division showed a year-over-year revenue increase of 39%, with remaining performance obligations rising by 11% to $625 billion.
Analysts had anticipated higher growth, contributing to the stock’s fall. Microsoft management indicated that unutilized computing capacity could have boosted growth rates, suggesting ongoing strong demand for AI computing. Following the drop, Microsoft’s stock is valued at approximately 25 times forward earnings, the lowest in three years.
