🔴 Microsoft is trading 5.2% down in pre-market after strong Q2 earnings overshadowed by high AI capex

MSFT is trading at $456.41 (-5.24%) in pre-market, falling sharply post-Q2 earnings primarily driven by soaring AI capital expenditure of $37.5B.

• Despite the drop, the company reported strong revenue of $81.3B (up 17%) and Azure growth at 39%.
• The $37.5B capex represents a 66% YoY increase in spending, raising concerns about the immediate return on investment (ROI).
• Management noted capacity constraints and demand exceeding supply, fueling investor worry about the heavy spending amid these operational limits.