The tech giant’s revenue was up 12 percent to $69.6 billion, but investors are showing their nerves after a long boom for tech stocks.

The UK antitrust regulator has singled out Microsoft for using its dominance in software to stifle rivals in the £9bn UK cloud services market, as the watchdog warned competition “is not working”.

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Group revenue for Microsoft’s fiscal second quarter ending in December rose 12 per cent from the previous year to a quarterly record of $69.6bn, beating analysts’ expectations for $68.9bn. Net income was up 10 per cent to $24.1bn, ahead of the average estimate of $23.5bn.

Microsoft on Wednesday forecast disappointing growth in its cloud computing business, sending its shares down 4.5% in after-hours trading as investors worry about big spending, elusive artificial intelligence revenue and competition from cheaper AI models from China.

Overall Microsoft revenue rises again, with AI tools pushing it forward Annual revenue run rate for Microsoft's AI business is up 175% YoY Microsoft opened two new data center regions last quarter Microsoft revenue climbed a very healthy 12% year-over-year in the final three months of 2024,

CFRA analyst Angelo Zino reaffirmed a Strong Buy rating for Microsoft stock (NASDAQ:MSFT) with a consistent price target of $490.00. Zino adjusted the forecast for Microsoft's earnings per share (EPS) for fiscal year 2025 to $13.

TD Cowen analyst Derrick Wood has maintained their bullish stance on MSFT stock, giving a Buy rating today.Invest with Confidence: Follow

SoftBank is in talks to invest as much as $25bn into OpenAI. The deal would make it the start-up’s biggest financial backer. At the same time, the two companies are also partnering on a separate massive AI infrastructure project. Here to explain what all this says about SoftBank’s AI ambitions is the FT’s Arash Massoudi. Hi, Arash.

Microsoft Corporation (NASDAQ:MSFT), a titan in the technology industry with a market capitalization of $3.09 trillion, continues to dominate the software and cloud computing landscape while making significant strides in artificial intelligence (AI).

Microsoft shares tumbled Thursday after the company’s weaker-than-expected fiscal second-quarter cloud growth prompted some analysts to be more cautious about the stock.

Investors grow concerned that AI expenses and a looming price war in cloud services could blow up its profits.