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Microsoft delivered a solid earnings report on Wednesday with $81.3 billion in revenue for the quarter (up 17%), net income profits of $38.3 billion (up 21%), and a record-breaking Microsoft cloud revenue of over $50 billion. But the stock was getting pounded on Thursday as investors worried about how much the tech giant was spending to build out its cloud and questioned whether that investment would pay off. Microsoft CEO Satya Nadella says the answer to that question is yes  — and spent considerable ti ...

Core Insights - Oracle's shares experienced a decline of up to 6.5%, attributed to a broader sell-off in AI stocks rather than company-specific news [1] - Microsoft reported strong quarterly results, with a 17% year-over-year revenue growth to $81.3 billion, but investor concerns about future AI profitability led to a drop in its stock by over 12% [2][3] - Oracle's recent financial performance included a revenue increase of 14% year-over-year to $16.1 billion and a significant rise in adjusted EPS by 54% to $2.26, but concerns about high capital expenditures persist [5][6] Company Performance - Oracle's remaining performance obligation (RPO) surged by 438% to $523 billion, indicating a substantial backlog [5] - The company spent $35.5 billion on capital expenditures, a significant increase from $10.7 billion in the previous year, raising investor concerns about the return on this investment [6] - Oracle's current valuation is approximately 31 times earnings, aligning it with other major tech companies, making its stock appear attractive given its backlog and lower valuation [6]

Do we have to swallow the 66% increase in CapEx in the quarter for long term rewards with Asia that just aren't showing up quite yet. Yes. Hi, Good morning.That's exactly the question that investors are asking us. What's really interesting is this is the second quarter in a row where Microsoft is actually telling you there is a more nuanced way to think about their Catholic's allocations. Typically, what you would expect to see is CapEx goes up, Azure revenue goes up, does a really direct correlation.What's ...

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive's content includes insights across various sectors such as biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive is committed to adopting technology to enhance workflows and improve content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Microsoft stock (NASDAQ: MSFT) plunged over 12% on Thursday, erasing $450 billion in market value after the company reported earnings that beat Wall Street's expectations. Despite solid numbers, Micro... ...

Group 1: Market Reactions and Trends - Investors reacted negatively to Microsoft's earnings results, leading to a decline in all three major US indexes, with Microsoft's stock plunging 12% after announcing a 66% increase in spending on data centers [4][13][21] - The tech-heavy Nasdaq Composite fell 2% to 23,352 points, driven by losses in major tech stocks, while the S&P 500 and Dow Jones Industrial Average also experienced declines [23][21] - Bitcoin has seen significant losses, dropping 5% to $85,225, marking a total decline of over 16% in the past year [19][3] Group 2: Commodity Market Dynamics - Gold prices surged past $5,500 an ounce for the first time, reflecting a nearly 100% increase over the past year, while silver prices skyrocketed by 285% during the same period [6][51] - The demand for safe-haven assets like gold and silver has increased due to geopolitical uncertainties and concerns over the weakening US dollar, which recently fell to a four-year low [9][50] - Analysts warn that the current surge in precious metals may be entering a "dangerous phase," as fear of missing out could drive prices beyond justified levels [7][51][52] Group 3: Economic Indicators and Trade Deficit - The US trade deficit nearly doubled in November to $56.8 billion, up from $29.2 billion in October, with a significant portion attributed to imports from the European Union facing tariffs [16][35] - The Federal Reserve's decision to hold interest rates steady has contributed to market volatility, with concerns about rising inflation and the impact of tariffs on trade dynamics [64][35] - Oil prices have reached a seven-month high, driven by geopolitical tensions, particularly threats from the US against Iran, with Brent crude rising over 5% to exceed $71 a barrel [17][30]

Core Viewpoint - Microsoft's reliance on OpenAI for future revenue is becoming a source of anxiety due to the concentration of its remaining performance obligations (RPO) tied to OpenAI contracts, which constitutes about 45% of its backlog [1][2]. Group 1: Remaining Performance Obligation (RPO) - RPO, or remaining performance obligation, represents the backlog revenue Microsoft expects to recognize from already signed contracts [1]. - The concentration of RPO tied to OpenAI raises concerns as the AI landscape evolves, particularly with the potential for model commoditization and competition from rivals like Amazon [2]. Group 2: Competitive Landscape - Investors are questioning the durability of demand for OpenAI's services if its compute spending shifts or is shared with competitors [3]. - The focus in the AI race is shifting from model development to product offerings, with competitors like Anthropic gaining attention for their innovative approaches [3]. - OpenAI's upcoming model, GPT-6, expected in the second quarter, may help restore its competitive narrative, but Microsoft may not benefit as significantly as it has in the past [4].

Core Viewpoint - U.S. stocks are experiencing a downturn, particularly in the software sector, with Microsoft facing significant declines despite beating earnings and revenue forecasts due to concerns over slower growth in cloud computing and increased spending on AI infrastructure [1][2]. Group 1: Software Sector Performance - Microsoft shares fell 12%, marking their worst day since March 2020, as investors reacted negatively to its fiscal second quarter results [2]. - Other software companies, including ServiceNow, SAP, and Salesforce, also experienced heavy selling, indicating a broader trend of investors wanting to exit the software sector [2]. - The S&P 500 index decreased by 0.68%, the Nasdaq dropped by 1.45%, and the Dow fell by 0.17%, reflecting overall market struggles [2]. Group 2: Performance Outside Software Sector - Companies outside the software sector showed better performance, with Caterpillar and Mastercard reporting improved year-over-year quarterly results [4]. - Lockheed Martin forecasted 2026 earnings above Wall Street expectations, indicating strong prospects in the defense sector [4]. - Southwest Airlines projected strong full-year profits, and IBM exceeded earnings estimates in its fiscal year-end results [4]. - Meta reported strong sales in the first three months of its fiscal year, highlighting resilience in the social media space [4]. Group 3: Gold Market - Gold prices experienced volatility, reaching a record high above $5,500 per ounce before falling as investors took profits, but they later recovered to show a 1.19% increase [3]. - Despite the recent decline, gold is on track for its best month since the 1980s, driven by economic and geopolitical uncertainties [3].

Microsoft’s (MSFT) second-quarter financials were a classic “good news is bad news” paradox. While the multinational handily topped Street estimates for both profit and revenue, its stock still cratered 13% on Jan. 29, as cloud business growth failed to impress shareholders. The selloff has even pushed Microsoft stock decisively below its 50-day moving average (MA), indicating continued pressure could follow in the weeks ahead. More News from Barchart Following the post-earnings plunge, the tech behemo ...