Core Viewpoint - Microsoft reported record spending on artificial intelligence in the last quarter, leading to slower cloud-computing growth, which has raised concerns among investors expecting significant returns from this investment and its partnership with OpenAI [1][2]. Financial Performance - Microsoft experienced a 6.5% decline in share price during after-market trading following the release of its fiscal second-quarter financial results [1]. - The Azure cloud division's revenue grew by 39% in the October-December period, slightly exceeding the consensus estimate of 38.8% [5]. - Overall revenue for the company increased by 17%, while the cost of revenues rose by 19%, raising concerns about potential long-term trends [4]. Strategic Partnerships and Competitive Landscape - The partnership with OpenAI, which plans to invest at least $281 billion with Microsoft, was initially viewed as a competitive advantage but is now seen as a potential drawback due to competition from Google's Gemini, which is attracting major clients like Apple [2][6]. - Microsoft holds a 27% stake in OpenAI, which has positively impacted its earnings due to changes in accounting for this stake [6]. Future Outlook - For the current fiscal third quarter, Microsoft forecasts Azure revenue growth of 37% to 38%, slightly above analyst estimates of 36.41% [8]. - The company anticipates overall sales to be in a range with a midpoint of $81.2 billion, aligning with analyst expectations of $81.19 billion [8].

Core Insights - Microsoft reported Q2 revenue of $81.27 billion, exceeding analyst expectations of $80.31 billion [1] - Intelligent Cloud revenue reached $32.91 billion, surpassing the forecast of $32.39 billion [1]

So for some more insight on just expectations into these reports and I'd like to welcome in Daniel Rabbino, editor and chief of Windows Central. Daniel, always appreciate you joining us, especially as we're on the heels of so many news catalysts for big tech as well as just the overall market, but wanted to start off your your thoughts here on Microsoft, of course, the the earnings before Apple. How crucial is AI momentum for this earnings event and really what will you be watching to gauge the real-time mo ...

Core Viewpoint - Microsoft Corporation (NASDAQ:MSFT) is highlighted as a key AI stock on Wall Street, with an Outperform rating and a price target of $600.00 ahead of its fiscal Q2 2026 earnings report [1]. Group 1: Earnings and Performance - Raymond James analyst Andrew Marok has reiterated an Outperform rating for Microsoft, indicating positive sentiment heading into the earnings report [1]. - Azure cloud services are reported to be performing strongly, driven by non-AI workloads, although AI supply remains limited [3]. - There are concerns regarding memory supply and pricing, which may delay Microsoft's target for demand/supply equilibrium [4]. Group 2: Market Sentiment - Sentiment around MSFT stock has been declining, with shares trading lower alongside other major technology companies, except for Alphabet [2]. - Despite the potential of Microsoft as an investment, some analysts believe other AI stocks may offer greater upside potential with less downside risk [5].

Core Viewpoint - The market is currently experiencing volatility, with a focus on upcoming earnings reports from major tech companies like Meta, Microsoft, and Tesla, while the Dow remains slightly positive. Investors are cautious about taking on more risk as they await these results, particularly due to concerns over spending and return on investment from these companies [1][2]. Group 1: Market Conditions - The Dow is the only index in the green, while other markets are slightly down, indicating a cautious sentiment ahead of significant earnings reports [1]. - Volatility has increased by 4.5%, suggesting a concentrated market movement rather than broad participation [1]. Group 2: Company Earnings and Expectations - Meta and Microsoft are under scrutiny as they prepare to report earnings, with Meta down 11% and Microsoft down 10% since their last earnings reports, raising concerns about their spending and return on investment [1][2]. - Microsoft is viewed as being in a better position due to its cloud business and diverse revenue streams, while Meta's future revenue generation strategies remain uncertain [2][8]. - Meta is forecasted to spend between $120 billion to $130 billion in capital expenditures this year, and investors are questioning whether this spending will be justified [2][10]. Group 3: Investment Sentiment - Investors are looking for clear indicators of return on investment from major tech companies, particularly in light of their significant capital expenditures [3][11]. - There is a belief that the upcoming earnings reports could shift attention back to big tech, which has been overshadowed by other sectors recently [4][5]. - The challenge remains in quantifying the return on investment for companies like Meta, compared to more easily measurable returns for companies like Microsoft and Nvidia [12].

The Nasdaq jumped 0.7% at the open to trade at 23,986, its highest price since early November. (The index was about flat in recent trading.) Its last record closing high—23,958.47—came on Oct. 29, right before earnings reports from tech giants amplified the debate on Wall Street about an AI bubble, dragging on tech stocks. Why are we back here? Because this year, investors have put those concerns aside to focus on the booming businesses of the companies supplying the technology that enables AI. Why This Is ...

One of the big stories that come in tandem with these results is a tie-up with Elon Musk 's other AI venture: Xai. The company will invest $2 billion in the firm and cooperate on some "potential AI collaborations."As has become increasingly common, the company emphasized future product development, namely on its Optimus robot, RoboTaxi product, and utility-grade battery system. The firm's diversification away from being a pure-play electric vehicle producer has come amid global pressures on the auto market. ...

Company Overview - ZOOZ Strategy, formerly ZOOZ Power, transitioned from kinetic energy to Bitcoin investment, resulting in an 84% stock decline since last summer, with a current market cap of $87 million, lower than its Bitcoin holdings [1][2] - The company held its IPO on the Tel Aviv Stock Exchange in 2021 and later merged with a SPAC but faced challenges on Wall Street [2] Leadership and Strategy - CEO Jordan Fried, appointed after a background in blockchain ventures and cybersecurity, emphasizes a long-term vision for ZOOZ, including an annual salary of $1 and performance-based shares [3][4] - ZOOZ's strategy includes optimizing operations, improving transparency, and exploring asset management beyond merely holding Bitcoin [6] Market Position and Valuation - ZOOZ is perceived as undervalued in the market, trading below $1 and receiving a warning from Nasdaq for non-compliance, with plans for a potential reverse stock split and a $50 million share buyback [7] - The company aims to provide exposure to Bitcoin for Israeli investors facing regulatory challenges in purchasing Bitcoin directly [6] Industry Perspective - Fried views Bitcoin as a significant innovation, likening its adoption to historical financial shifts, and believes it plays a role in national security [2][8] - The company is exploring the potential for its original energy activities to pivot towards serving large cloud providers, reflecting a shift in market dynamics [6] Geopolitical Considerations - Fried highlights the importance of energy production in relation to Bitcoin mining and national competitiveness, noting Israel's current energy challenges compared to other nations [9]

Microsoft Corporation (NASDAQ:MSFT) is one of the stocks Jim Cramer put under the microscope. Cramer highlighted what he would like to see in the company’s earnings report, as he commented: Next up, Microsoft had the same problem when it reported on the same night as Meta in late October. All their numbers for the reported quarter looked great, but after previously saying that their CapEx growth in fiscal 2026 would be lower than it was in fiscal 2025, they basically took that back and said the opposite w ...

Core Viewpoint - The T. Rowe Price Tech ETF (TTEQ) offers a flexible investment vehicle that allows for a broader definition of tech stocks, enabling better access to earnings results across various sectors [1] Group 1: ETF Characteristics - TTEQ charges a fee of 63 basis points and includes key tech names like Alphabet (GOOGL) and Meta (META), which are categorized under communications [1] - The fund is managed by Dom Rizzo, who employs a strategy that blends innovative tech companies with critical tech infrastructure firms [1] - TTEQ has the flexibility to invest in both large-cap tech firms and newly public companies, enhancing its investment scope [1] Group 2: Performance and Strategy - Over the past year, TTEQ has achieved a return of 20.8%, outperforming its ETF Database Category average [1] - The fund's investment strategy is based on fundamental research, stock valuation, and share price growth potential [1] - TTEQ recently completed a private investment in OpenAI, indicating its commitment to innovative tech investments [1] Group 3: Future Outlook - TTEQ is positioned not only for immediate earnings results but also as a long-term investment option for those interested in tech across various sectors [1]