Microsoft Stock Plunge Despite Strong Earnings Highlights Cloud Growth Concerns
Microsoft shares tumbled 7% Wednesday despite robust earnings, as investors focused on slowing growth in the company's Azure cloud division. The dip reflects market sensitivity to tech giants' cloud performance metrics, even amid broader AI investments.
Azure revenue growth decelerated to 39% from 40% last quarter—a marginal change that sparked disproportionate market reaction. Analysts maintain bullish outlooks, with TipRanks projecting a $678 price target within 12 months, suggesting this may represent a buying opportunity rather than structural weakness.
The selloff demonstrates how cryptocurrency-style volatility now permeates traditional tech stocks when growth narratives show even minor cracks. As cloud computing becomes the backbone of both enterprise tech and blockchain infrastructure, these metrics increasingly MOVE markets.
