Microsoft Defies Tech Selloff on Massive Backlog and Azure Growth

Microsoft's stock price rose by approximately 1.1% to $488.93 on Monday, bucking the trend of declining semiconductor stocks that pulled the Nasdaq lower.

The company's huge backlog of contracted demand, which stands at a staggering $678 billion, is seen as a key factor in its resilience.

About 30% of this backlog should convert into revenue within the next 12 months, and investors are pinning their hopes on Microsoft's ability to deliver.

The demand for Microsoft Cloud services grew by 27%, with Azure growth accelerating to 43% year-over-year. However, quarterly capital expenditures reached a record $41 billion, which drove free cash flow down 23% to $19.6 billion.