We continue to believe that Microsoft remains uniquely positioned to monetize the vast new AI opportunity across applications,” writes BofA Securities analyst Brad Sills.
Microsoft Corp. said Wednesday that its profit for the October-December quarter grew 10% from the same time last year as it works to capitalize on the huge amounts of money it has spent to advance its artificial intelligence technology.
Microsoft (NASDAQ:MSFT) has lagged behind the NASDAQ over the past year but is off to a strong start in 2025, outperforming the broader market.
Shares in Microsoft fell 5% in afterhours trading as the tech giant said its flagship cloud computing business experienced a slowdown in growth last quarter. The takeaways: The company’s overall revenue rose 12% to $69.
Microsoft reported its fiscal second-quarter results after Wednesday's closing bell, with investors focused on all things AI.
Microsoft reported that its flagship cloud computing business experienced a slowdown in growth amid constraints on data center supply.
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The Nasdaq Composite has erased early gains as losses for shares of Microsoft Corp. and Nvidia Corp. accelerated, weighing on the broader index. Microsoft shares were down more than 6% earlier, while Nvidia was down nearly 4%,
Microsoft shares dropped 5 per cent, while Meta was up 2 per cent after their October-December Q1 results, both companies posted profits, according to AP reports.
ServiceNow (NOW) expects $2.995 billion to $3 billion in subscription revenue for the first quarter, while analysts were projecting $3.031 billion. For the first quarter, revenue in that category amounted to $2.866 billion, up 21% but slightly below the $2.879 billion consensus view.
Building and operating AI systems is costly, and Microsoft has said it plans to spend 80 billion dollars (£64.38 billion) this year as it expands its global network of energy-hungry computing centres and supplies them with specialised chips to train and run AI models.