economy
January 30, 2026
Microsoft stock is flat the day after sinking 10%. Here's why
Microsoft's stock saw its biggest daily decline since 2020 on Thursday after investors were dismayed by its cloud computing business not growing enough.
TL;DR
- Microsoft's stock fell 10% on Thursday, its largest daily decline since 2020.
- The decline occurred despite the company beating second-quarter earnings expectations.
- Azure, Microsoft's cloud computing platform, saw growth of 39% in Q2, below the 39.4% consensus.
- The company's CFO noted that cloud results could have been higher if more data center infrastructure was allocated to customers instead of internal AI needs.
- The revenue forecast for the More Personal Computing segment was lower than expected.
- Analysts suggest investors are concerned about Azure's future growth acceleration and Microsoft's decision to prioritize internal AI development.
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