🔴 Microsoft is trading 10% down today after earnings disappointment on AI capex and cloud growth

MSFT is trading at -10.06% now at $433.16 following a sharp sell-off driven by investor concerns over soaring $37.5B capital expenditure and tight GPU supply, despite reporting an earnings beat.

• The company reported strong Q2 results, including revenue of $81.3B (up 17% YoY) and Azure growth of 39%.
• The primary catalyst for the plunge was the massive 66% increase in capex, reaching $37.5B, as AI spending outpaced perceived near-term revenue returns.
• Guidance for Azure growth (37-38%) met, but did not significantly exceed, expectations, contributing to the soured investor sentiment.