From Futuriom · · 1m 10s
Hyperscaler Stocks Fall on AI Investor Fears
Investor AI spending fears cause Microsoft and Google stocks to drop after earnings reports.
In brief
Investor AI spending fears cause Microsoft and Google stocks to drop after earnings reports. Investors are hesitant to support hyperscalers' infrastructure buildouts due to AI spending concerns. Originally reported by Futuriom.
Microsoft Earnings Beat
Microsoft reported quarterly revenues of $92.3 billion, up 19% year-over-year.
Azure Sales Surge
Azure sales reached $33.2 billion, up 48% year-over-year.
Microsoft Capex Increase
Microsoft plans $50 billion capex next quarter, up 22% year-over-year.
CFO on Capex Shift
CFO Amy Hood said capex will accelerate from CPUs, memory and storage costs.
Microsoft Free Cash Flow Down
Microsoft reported free cash flow of $18.6 billion, down 27% year-over-year.
Microsoft Stock Drops
Microsoft shares fell 1.27% early Thursday after earnings.
Google Earnings Report
Google parent Alphabet reported $128 billion in quarterly revenues, up 25% year-over-year.
Google Net Income Down
Alphabet reported net income down 37% to $26 billion.
Google Free Cash Flow Negative
Alphabet reported over $9 billion in negative free cash flow.
Google Stock Plunge
Google shares dropped over 12% after earnings report.
The key point
Investors are hesitant to support hyperscalers' infrastructure buildouts due to AI spending concerns.
