Microsoft shares tumble more than 10% in largest single‑day drop in nearly six years

Microsoft MSFT.O shares down 10.3% in early trade after record AI spending, softer cloud momentum rattled investors

Co set for biggest single-day drop since March 2020

Capex jumped nearly 66% y/y to $37.5 bln, overshooting estimates and fuelling margin concerns

Matt Britzman, senior equity analyst at Hargreaves Lansdown, said guidance for next quarter was slightly soft, investor unease amplified by fact that nearly half of Microsoft's cloud backlog is tied to OpenAI

Barclays analysts say Microsoft's capacity expansion is no longer driving upside in Azure growth, as more computing power is being diverted to first‑party offerings like Copilot, limiting near‑term excitement around cloud acceleration

Azure revenue rose 39%, narrowly beating forecast, but growth set to slow to 37–38% this quarter

YTD, MSFT down 0.4%