Microsoft Shares Dip Despite Strong Earnings Amid Azure Concerns

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Microsoft Shares Dip Despite Strong Earnings Amid Azure Concerns

GuruFocus01-31

Microsoft (MSFT -6%) experienced a decline in stock price following the announcement of its Q2 (Dec) earnings. The company reported a significant double-digit EPS beat with revenue increasing by 12% ...

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MaxGain
·01-31
The whole Azure story is a FARCE in the face of competition from Google and Amazon, doomed to fail. Better bail out before the USD80 billion is spent and and flunking out in utter failure. Bloody CEO is acting tough and talk about end of SaaS, when his own ship in going up is freaking flames 🔥.
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The company reported a significant double-digit EPS beat with revenue increasing by 12% ...</p>\n\n<a href=\"https://www.gurufocus.com/news/2673818/microsoft-shares-dip-despite-strong-earnings-amid-azure-concerns\">Source Link</a>\n\n</div>\n","source":"gurufocus_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Microsoft Shares Dip Despite Strong Earnings Amid Azure Concerns</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMicrosoft Shares Dip Despite Strong Earnings Amid Azure Concerns\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-01-31 00:14 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.gurufocus.com/news/2673818/microsoft-shares-dip-despite-strong-earnings-amid-azure-concerns><strong>GuruFocus</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Microsoft (MSFT -6%) experienced a decline in stock price following the announcement of its Q2 (Dec) earnings. The company reported a significant double-digit EPS beat with revenue increasing by 12% ...</p>\n\n<a href=\"https://www.gurufocus.com/news/2673818/microsoft-shares-dip-despite-strong-earnings-amid-azure-concerns\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"MSFT","symbol_name":"微软","start_time":0,"source_url":"https://www.gurufocus.com/news/2673818/microsoft-shares-dip-despite-strong-earnings-amid-azure-concerns","article_id":"2507167811","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2507167811","pubTimestamp":1738253688,"columns":[],"sourceInfo":{"source_id":"gurufocus_highlight","name":"GuruFocus"},"weMediaInfo":null,"summary":"Microsoft (MSFT -6%) experienced a decline in stock price following the announcement of its Q2 (Dec) earnings. 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The company reported a significant double-digit EPS beat with revenue increasing by 12% y","content":"<html><body><div><div><p><strong>Microsoft (MSFT -6%)</strong> experienced a decline in stock price following the announcement of its Q2 (Dec) earnings. The company reported a significant double-digit EPS beat with revenue increasing by 12% year-over-year to $69.63 billion, surpassing analyst expectations. However, the Q3 (Mar) revenue guidance was slightly below expectations, with the Intelligent Cloud (IC) segment and Azure figures at the lower end of guidance.</p><ul><li>Azure growth was at +31% constant currency (CC), the low end of its +31-32% CC guidance. While Azure AI results exceeded expectations, challenges were noted on the non-AI side, particularly with indirect customers. Microsoft anticipates Azure revenue growth of +31-32% CC in Q3, with ongoing impacts on the non-AI side as execution challenges are addressed.</li><li>The broader IC segment shortfall was influenced by Azure, with FX proving a more significant headwind than anticipated. Non-AI Azure services, on-prem server, and Enterprise and Partner services were slightly below expectations, though Azure AI services performed better than expected. Azure's quarterly variability can be attributed to in-period revenue recognition based on contract mix.</li><li>Microsoft mentioned that Azure AI is expected to be capacity constrained in Q3, but by FY25, it aims to align capacity with demand through substantial capital investments. The company has previously cited AI capacity constraints as a limiting factor, making future performance without these constraints noteworthy.</li><li>The Productivity and Business Processes and More Personal Computing segments exceeded prior guidance in terms of sales performance.</li><li>Regarding DeepSeek's impact on AI spending, Microsoft highlighted its innovations and compared AI developments to regular compute cycles. As token prices and inference computing prices decrease, consumption increases, leading to more applications being developed. This trend is seen as positive for a hyperscaler and PC platform provider like Microsoft.</li></ul><p>Overall, the DecQ results were somewhat disappointing as Microsoft usually surpasses guidance across all three segments. The slight underperformance in IC and Azure has concerned investors. However, the market reaction may be exaggerated. Azure's Q3 guidance remains at +31-32% CC, and the weakness is primarily on the non-AI side, which is less concerning. 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The company reported a significant double-digit EPS beat with revenue increasing by 12% ...</p>\n\n<a href=\"https://www.gurufocus.com/news/2673818/microsoft-shares-dip-despite-strong-earnings-amid-azure-concerns\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"MSFT":"微软"},"source_url":"https://www.gurufocus.com/news/2673818/microsoft-shares-dip-despite-strong-earnings-amid-azure-concerns","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2507167811","content_text":"Microsoft (MSFT -6%) experienced a decline in stock price following the announcement of its Q2 (Dec) earnings. The company reported a significant double-digit EPS beat with revenue increasing by 12% year-over-year to $69.63 billion, surpassing analyst expectations. However, the Q3 (Mar) revenue guidance was slightly below expectations, with the Intelligent Cloud (IC) segment and Azure figures at the lower end of guidance.Azure growth was at +31% constant currency (CC), the low end of its +31-32% CC guidance. While Azure AI results exceeded expectations, challenges were noted on the non-AI side, particularly with indirect customers. Microsoft anticipates Azure revenue growth of +31-32% CC in Q3, with ongoing impacts on the non-AI side as execution challenges are addressed.The broader IC segment shortfall was influenced by Azure, with FX proving a more significant headwind than anticipated. Non-AI Azure services, on-prem server, and Enterprise and Partner services were slightly below expectations, though Azure AI services performed better than expected. Azure's quarterly variability can be attributed to in-period revenue recognition based on contract mix.Microsoft mentioned that Azure AI is expected to be capacity constrained in Q3, but by FY25, it aims to align capacity with demand through substantial capital investments. The company has previously cited AI capacity constraints as a limiting factor, making future performance without these constraints noteworthy.The Productivity and Business Processes and More Personal Computing segments exceeded prior guidance in terms of sales performance.Regarding DeepSeek's impact on AI spending, Microsoft highlighted its innovations and compared AI developments to regular compute cycles. As token prices and inference computing prices decrease, consumption increases, leading to more applications being developed. 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