Microsoft Is Tanking. What's Behind the Decline?
The share price of (NASDAQ: MSFT) cratered last week -- down 11% on Thursday, the largest one-day drop in the tech giant's stock since March 2020. Shares rebounded a tiny bit in the afternoon to end 10% down on the day. What's going on? And what should investors expect now?
Microsoft released results Thursday morning for its fiscal second quarter, ended Dec. 31, 2025. Based on the headline numbers, you would have expected a great reaction from Wall Street. Revenue of $81.3 billion in the quarter was up 17% from a year ago. Diluted earnings per share increased 60% to $5.16. Operating income grew 21% to $38.3 billion. Both sales and earnings figures exceeded consensus analyst expectations.
But investors looked past those numbers and focused narrowly on the company's spending and cloud sales growth. Capital expenditures rose 66% from a year earlier, to a massive $37.5 billion, higher than analyst estimates of $36.2 billion. Meanwhile, revenue from the company's Azure cloud computing unit, which reflects artificial intelligence (AI) demand, grew 38%.
Source Fool.com
Microsoft Corp. Aktie
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Ein Kursziel von 503 € für Microsoft Corp. signalisiert eine potenzielle Steigerung von über 50% gegenüber dem aktuellen Kurs von 326.85 €.
