Microsoft (NASDAQ:MSFT), which develops software, services, devices, and solutions worldwide, closed Thursday at $433.50, down 9.99%. Shares declined after earnings and AI capital expenditure updates led investors to focus on slowing Azure cloud growth. Trading volume reached 126.5 million shares, about 366% above its three-month average of 27.1 million shares. Microsoft IPO'd in 1986 and has grown 445,782% since going public. How the markets moved today The S&P 500 dipped 0.17% to 6,966, while the Nasda ...

Core Insights - Tech and software shares experienced a significant decline during Thursday trading [1] Group 1 - The drop in tech and software shares indicates a broader market trend affecting these sectors [1]

Core Insights - AI startup Perplexity has entered into a significant agreement worth $750 million with Microsoft to utilize its Azure cloud service [1] Company Summary - Perplexity, an AI startup, is set to enhance its operations through a partnership with Microsoft, leveraging the capabilities of Azure cloud services [1] Industry Summary - The agreement highlights the growing trend of collaboration between AI startups and major cloud service providers, indicating a robust demand for cloud infrastructure in the AI sector [1]

In New York, the Dow Jones industrial average was up 55.96 points at 49,071.56. The S&P 500 index was down 9.02 points at 6,969.01, while the Nasdaq composite was down 172.33 points at 23,685.12.Microsoft was the heaviest weight on the U.S. market by far, and the tech giant tumbled 10% even though it reported stronger profit and revenue for the latest quarter than analysts expected. Investors honed in instead on how much Microsoft is spending on investments, whether growth in its Azure cloud business will s ...

that do not rely heavily on technology. A significant portion of assets will be concentrated in securities in related industries, and may be similarly affected by adverse developments and price movements in such industries. A significant portion of assets may be invested in securities of companies in related sectors, and may be similarly affected by economic, political, or market events and conditions and may be more vulnerable to unfavorable sector developments. Investing in companies of small and medium c ...

[Chart courtesy of MarketWatch.com][Chart courtesy of MarketWatch.com]Moving the marketThe major indexes opened sharply lower, dragged down hard by Microsoft after its latest earnings miss.The stock tanked 11%—its worst day since March 2020—on slower cloud growth and soft margin guidance for the next quarter.That sparked fresh worries that AI might disrupt even Microsoft’s core business model, so software names got hit too: ServiceNow dropped 12% (even after beating estimates), Oracle fell 5%, and Salesforc ...

Microsoft stock plummeted almost 10% on Thursday, a steep drop the day after the tech giant reported earnings that saw the company shed a whopping $357 billion from its market capitalization. Shares fell 9.99% on the day. It was the stock's worst day since 2020, CNBC reports. Shares were only up slightly in after-hours trading late Thursday. In its earnings release on Wednesday, Microsoft reported doing exactly what Big Tech keeps promising it can do: spend like the future has a delivery deadline and st ...

Market Overview - The stock market closed mostly lower, with the Dow managing to finish slightly in the green, while the NASDAQ experienced its worst day in several months [1][2][3] - The S&P 500 ended with a minor loss of about 13 basis points, while the Russell 2000 small-cap index was also slightly down [3] Company Performance - Microsoft saw a significant drop, down approximately 10% at its lows, marking its worst performance in several months [4] - Tesla also declined by 3%, while Meta's stock rose by 10%, contributing to a strong performance in the communication services sector [4][5] - SanDisk reported a revenue of $3.03 billion, exceeding expectations of $2.68 billion, and its earnings per share came in at $620, significantly higher than the expected $344 [22][23] - SanDisk's stock has surged over 90% year-to-date, driven by high demand for memory products in the AI sector [24][25] Sector Analysis - The communication services sector reached a record high, while technology was the worst-performing sector, down 1.6%, primarily due to poor performance in software stocks [5][6] - The software industry faced widespread declines, with companies like SAP down 15% and Atlassian down 10% [6][7] - In the semiconductor space, companies like Lamb Research and KLA saw gains of about 3.5%, indicating a mixed performance within the sector [7] Geopolitical Impact on Oil - Crude oil prices rose to their highest levels since September, influenced by President Trump's threats of military action against Iran, which has led to a risk premium in the oil market [11][12] - Analysts noted that the market is not currently pricing in a full-scale conflict but is reacting to operational signals and geopolitical tensions [12][13] Housing Market Insights - US mortgage rates are holding steady at 6.1%, the lowest in three years, but housing affordability remains a challenge due to high home prices [44][45] - The "lock-in effect" is causing homeowners with low-rate mortgages to keep their homes off the market, contributing to tight inventory levels [48][50] - New home listings have increased, but they are still 20% below pre-pandemic levels, indicating a slow recovery in housing supply [50][56] Future Outlook - Analysts expect continued high demand for memory products, particularly in AI infrastructure, but caution against potential oversupply in the future as production ramps up [39][42] - The housing market may see improvements in inventory levels, but significant policy changes at the state and local levels are needed to address long-term supply issues [52][56]

Microsoft, Meta, Tesla, Joby Aviation, Royal Caribbean, and More Stock Movers - Barron'sSkip to Main ContentThis copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.# These Stocks Are Today's Movers: Microsoft, Meta, Tesla, Joby Aviation, SAP, Royal Caribbean, and MoreBy [Mackenzi ...

Core Insights - Microsoft reported Azure growth of 38%, missing the expected 40%, attributed to significant GPU capacity being utilized for in-house applications rather than revenue-generating activities [1] - In contrast, Meta has seen a positive impact on ad convergence from AI applications, highlighting a gap in Microsoft's narrative regarding business uplift from their AI initiatives [1] Azure Performance - Azure's growth rate is a critical metric for Microsoft, and the recent performance indicates a need for more revenue-generating applications [3] - The company is bundling products like GitHub and Office Co-pilot, but growth rates in these areas have not improved significantly [3] Capital Expenditure (CapEx) - Microsoft reported a CapEx of $37.5 billion for the quarter, a 66% increase from the previous year, raising questions about market comfort with such spending [4] - Comparatively, Meta announced a 70% increase in CapEx for 2026, which was well-received by the market due to their revenue growth expectations [5] Competitive Landscape - Microsoft faces competition from companies like Google and Anthropic, which are releasing their own AI products that may outperform Microsoft's offerings [9][10] - The reliance on OpenAI for AI capabilities is seen as a weakness compared to competitors that have vertically integrated solutions [11] Market Sentiment - The software sector, including Microsoft, has experienced significant drawdowns of 40-50% over the past three months, driven by concerns over potential disruptions in the software market [8] - Despite the recent downturn, there is a belief that the market reaction may be an overreaction, as there are no fundamental issues with Microsoft's performance [14]