Nasdaq Stocks Soar on Microsoft's Strong Cloud Revenue Report
Nasdaq stocks surged on Thursday after Microsoft's quarterly revenue report showed a 43% growth in Azure cloud revenue, exceeding expectations. This significant increase is a testament to the company's profitable AI strategy and its successful investment in cloud computing.
Microsoft's $90 billion quarterly revenue far exceeded analyst estimates of $87.6 billion, with the company's market capitalization increasing by $555 billion. The tech giant's strong performance led to a rally in semiconductor stocks, with the iShares Semiconductor ETF jumping 8% and Micron Technology soaring 15.7% higher.
However, not all tech companies fared well on Thursday. Meta Platforms saw its stock drop 9.2% after missing earnings expectations by $1.04 per share and issuing third-quarter revenue guidance with a midpoint below analyst estimates. The company's second-quarter free cash flow collapse of 91% raised concerns about the sustainability of its AI spending spree.