'Fast Money' traders react to Microsoft's Q1 results

Core Insights - Microsoft reported earnings that beat expectations across the board, including EPS and revenue, with Azure cloud growth at 40% compared to the expected 38.2% [1][2] - Despite strong earnings, the stock price declined, potentially due to valuation concerns and a lack of significant guidance during the earnings call [4][5] - The impact of OpenAI's stake resulted in a $3 billion negative effect on Microsoft's net income, raising concerns about future profitability [3] Financial Performance - Microsoft achieved a market cap of $4 trillion this week, indicating strong market confidence [2] - The Intelligent Cloud segment only slightly exceeded expectations, which may have contributed to the stock's decline [2] - The upcoming guidance on capital expenditure for the December quarter and AI demand is highly anticipated [3] Market Context - The stock market's recent performance has been driven more by liquidity than by earnings, suggesting that future earnings must align with high liquidity expectations [12][13] - Other tech stocks, such as Nvidia and AMD, are also experiencing fluctuations, indicating a broader trend in the tech sector [11][12] - The overall earnings growth in the market may shift towards a broader range of companies post-earnings season, as many companies are showing higher growth rates than the major tech firms [14]