Microsoft Stock Surges as Earnings Exceed Expectations

Microsoft's stock price surged more than 15% on Thursday after the tech giant reported strong fourth-quarter earnings that beat Wall Street estimates. The company's Azure service topped $100 billion in revenue for the first time, exceeding expectations.

In its latest quarterly report, Microsoft revealed it spent $41 billion on capital expenditures, including leases, which was lower than anticipated at $42 billion. This spending has been a concern for investors, who worry about its impact on free cash flow and whether these investments are paying off in terms of revenue growth.

The Intelligent Cloud segment saw revenue of $39.3 billion, surpassing expectations of $38.1 billion. Microsoft's stock is down 5% year to date, but the latest earnings report appears to have alleviated some concerns about the company's aggressive capital expenditures and their impact on its financials.