Why Microsoft's Stock Is Seeing An Unusually Large Gain After Earnings
Microsoft saw surprisingly strong performance in the cloud, but it's also monetizing generative AI well and moderating capital-spending growth. Against a lowered bar, Microsoft Corp. delivered big with its latest quarterly results, and that could translate to the stock's best post-earnings performance in about a decade.Microsoft's third-quarter report contained "every element needed to dissipate various concerns," according to Bernstein analyst Mark Moerdler.Perhaps the most visible positive was Microsoft's Azure cloud-computing growth, which at 35% in constant currency, easily exceeded expectations and marked an acceleration from 31% in the prior quarter. Microsoft's Azure guidance impressed as well.Don't miss: Microsoft's stock soars as earnings show booming cloud growth. But there were other upbeat signs as well. "While Azure AI continues to be an increasing percentage of Azure revenue," contributing 16 percentage points to growth in the March quarter, "non-AI Azure growth stabiliz