Microsoft's stock has dropped 24% this year, nearing its worst quarterly performance since 2008, despite reporting $81.27 billion in Q2 FY2026 revenue, a 17% increase year-over-year. The decline follows news of a hiring freeze in its cloud and North American sales units, raising concerns about the high capital expenditures—$37.5 billion in Q2 alone, projected to reach $146 billion for fiscal 2026—and whether these costs will outpace revenue growth. Azure's strong 39% growth and future guidance contrast with skepticism about limited AI hardware allocation to external customers and a valuation discount to the S&P 500. Bulls highlight a $625 billion backlog of contracted future revenue and strong cash flow, but the market awaits clearer proof of AI-driven revenue acceleration before adjusting valuations.
In Q2 2026, top contributors to growth included Taiwan Semiconductor Manufacturing, Alphabet, United Rentals, Apple, and Visa. Alphabet’s Google Search and Cloud segments showed robust revenue growth of 19% and 63%, respectively, boosting operating i...
Microsoft is instructing its sales team to highlight the efficiency and cost advantages of its own AI models compared to competitors like OpenAI, Google, and Anthropic. This shift comes as Microsoft replaces some third-party AI models in apps like Wo...
The SPDR NYSE Technology ETF (XNTK) has significantly outperformed the Invesco QQQ Trust (QQQ) over the past year, returning 51.65% compared to QQQ's 28.43%. XNTK uses an equal-weight approach focusing solely on about 35 tech leaders, capturing broad...
Jim Cramer cautioned that the recent rally in Big Tech stocks like Alphabet, Microsoft, Meta, and Amazon might be more about investor optimism than real improvements in their business fundamentals. Despite positive news such as Warren Buffett's endor...
Microsoft fixed a major security vulnerability in the remastered Age of Empires II that could let hackers take control of a victim's computer by sending a malicious game invite. The flaw, discovered with AI assistance, allowed remote code execution i...
