Microsoft Shares Slip as Azure Growth Matches Estimates
Microsoft shares fell 2% as Azure revenue growth of 40% trailed Google Cloud. Investors worry about AI competition and a revised deal with partner OpenAI.
MICROSOFT CORP shares fell 2% in late evening trading Wednesday after Azure cloud revenue growth reached 40%, meeting but not exceeding market expectations. The performance trailed ALPHABET INC-CL A, which reported a 63% revenue surge in its cloud division during the same period. Investors are questioning Microsoft's AI leadership as sluggish Copilot adoption and shifting OpenAI terms intensify competition from cloud rivals.
Azure's 40% growth rate was a slight acceleration from 39% in the previous quarter. However, Google Cloud's 63% jump surpassed the 50.1% growth expected by analysts, driving Alphabet shares up 4%.
