Thursday, February 5, 2026 at 11:45 AM
Microsoft reported record-breaking second-quarter revenues but faced a significant stock price drop due to high capital expenditures, raising concerns among investors about the return on AI investments.
The tech giant reported higher-than-expected spending on AI infrastructure while growth in its closely watched cloud business slowed.
Wall Street has been rotating out of AI leaders into real-economy stocks.
Investors have punished big-spending tech giants and software companies while betting on memory chips.
In discussing Q4 earnings, the private-markets firm said it isn’t changing its return forecasts despite market turbulence over the software sector.
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