Meta appeared to gain approval from investors to keep putting money into AI as shares jumped 8% post-earnings. Microsoft plunged as the company's Azure segment showed a slowdown in growth and higher spending on AI.
Nvidia Corp (NASDAQ:NVDA, XETRA:NVD), Microsoft Corp (NASDAQ:MSFT) and Amazon.com Inc (NASDAQ:AMZN) are in discussions to invest up to $60 billion in OpenAI as part of a major new funding round, according to a new report from The Information, which cited people familiar with the matter. The planned investments would form part of a broader round that could reach as much as $100 billion, potentially valuing OpenAI at between roughly $730 billion and $830 billion, according to the report.
S&P 500 hovers near record highs as mixed Meta and Microsoft earnings leave indices directionless. Key trendline at 7048 crucial for sustained rally.
Microsoft Corporation receives a Buy rating, with valuation attractive despite recent post-earnings share weakness and technical headwinds. MSFT's Q2 delivered a double beat, but Azure's 38% growth and elevated capex disappointed, pressuring free cash flow and sentiment. Forward guidance remains robust, with Azure growth near 37% and capex expected to slow, while AI investments and partnerships are key watchpoints.
Question: Microsoft exceeded earnings expectations—why did the stock drop 7% after hours?
Shares of Microsoft (NASDAQ:MSFT) gained 7.57% over the past five trading sessions after losing 4.87% the five prior.
The Facebook parent's results highlight the advantages of its simpler, ad-focused business model.
Nvidia stock is at its highest level since early November as investors watch big AI spending commitments from Microsoft and Meta Platforms.
Microsoft shares dropped 6.2% in Frankfurt on Thursday a day after the company said it had spent a record amount on artificial intelligence in the last quarter and posted slower cloud-computing growth, worrying investors.
Nvidia , Amazon , Microsoft are in talks to invest up to $60 billion in OpenAI, The Information reported on Wednesday.
Microsoft Corporation (MSFT) Q2 2026 Earnings Call Transcript
Microsoft shares slid after hours, despite the company beating earnings expectations for its Q2. Analysts pressed CEO Satya Nadella and CFO Amy Hood about Azure's slowing revenue growth.