Microsoft Stock: Cloud Growth Misses Mark, Shares Tumble 4.6%

Microsoft's stock experienced significant pressure on Thursday, dropping 4.6% to $421.92 on NASDAQ, with the decline extending to a daily low of $414.74. The tech giant's performance fell short of market expectations, particularly in its cloud division, where revenue growth of 21% to $40.9 billion failed to meet analyst projections of $41.1 billion. The stock now trades 11% below its 52-week high of $468.33, as investors react to slower-than-anticipated cloud segment expansion and broader market concerns.

AI Infrastructure Investment Plans

Despite facing capacity constraints in AI service delivery, Microsoft maintains an aggressive investment strategy, committing approximately $80 billion to enhance its AI infrastructure in the current fiscal year. These constraints are expected to persist throughout the year, though the company has already demonstrated its commitment to expansion with capital investments doubling to $22.6 billion in the last quarter. The overall corporate performance showed resilience, with total revenue increasing by twelve percent to $69.6 billion and profits rising ten percent to $24.1 billion.