Microsoft (MSFT) shares dropped 5.29% in after-hours trading, closing at $392.30, driven by ongoing post-earnings concerns regarding limited Azure growth and high financial commitments to OpenAI.
- Analysts cited worries over limited Azure growth, stemming from AI chip shortages and the massive financial commitment to OpenAI.
- The commitment to OpenAI is estimated at $250B, adding pressure as cloud revenue failed to impress investors.
- The decline was amplified by broader market weakness and recession fears following 108,435 January job cuts, pressuring growth stocks.