"Microsoft's AI business has achieved a $37 billion annual run rate, growing at 123% year-over-year, while Azure reaccelerated to 40% growth, indicating strong demand."
"Despite a $30.88 billion quarterly capex bill and a projected increase to over $40 billion in Q4, Microsoft maintains a robust commercial backlog of $627 billion."
"The stock's decline to $410 raises questions, especially as EPS of $4.27 beat expectations for the fourth consecutive time, with a forward P/E of 21x."
Microsoft's stock price has dropped from $552.51 to $410.38, despite significant growth in its AI and cloud sectors. The company reported $54.5 billion in cloud revenue and a commercial backlog of $627 billion. AI revenue reached a $37 billion annual run rate, growing 123% year-over-year. However, concerns over a $30.88 billion quarterly capex bill and declining free cash flow have contributed to the stock's decline. Management projects Q4 revenue between $86.7 and $87.8 billion, with a consensus target of $560.77.
Read at 24/7 Wall St.
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