Microsoft Stock: $800M Cruise Write-Down Tests Market Confidence

Microsoft Corporation has announced a significant financial adjustment for its second fiscal quarter, revealing an $800 million write-down related to its minority stake in Cruise, General Motors' autonomous vehicle subsidiary. This adjustment, triggered by Cruise's recent suspension of its robotaxi project, is expected to impact earnings per share by approximately 9 cents. Despite this substantial write-down, Microsoft's overall financial health remains robust, with the company reporting impressive revenue growth of 16.04 percent to $65.59 billion in its most recent quarter, alongside an increase in earnings per share from $3.00 to $3.32 compared to the previous year.

Market Response Remains Positive

The market's reaction to the write-down news has been notably resilient, with Microsoft's stock demonstrating strength on the NASDAQ. Shares actually recorded a modest gain, closing at $453.11, up 0.92 percent. This positive market response reflects sustained investor confidence in Microsoft's fundamental business strategy, with analysts maintaining their optimistic outlook and setting an average price target of $498.33. The company's strong operational performance continues to overshadow the temporary setback in its autonomous driving investments.