Stock Market Update

[BRIEFING.COM] The S&P 500 (-1.4%), Nasdaq Composite (-2.5%), and DJIA (-0.7%) continue to widen their losses as mega-cap tech comes under increasing pressure. 

Microsoft (MSFT 423.18, -58.45, -12.14%) is facing a sharp retreat today despite delivering an impressive EPS beat with its fiscal Q2 (Dec) report. That said, the upside was the smallest EPS beat of the past four quarters, which may be tempering enthusiasm. Revenue rose a strong 16.7% year-over-year to $81.27 billion, topping expectations and marking a milestone as Microsoft surpassed $80 billion in quarterly revenue for the first time. Q3 (Mar) revenue guidance was in-line. Notably, Microsoft Cloud revenue exceeded $50 billion for the first time, underscoring sustained demand across its cloud portfolio.

Azure revenue grew 38% CC, modestly above prior guidance of 37% CC, though investor reaction was mixed as some expected a bit more upside given robust demand conditions.

Capital expenditures increased to $37.5 billion in Q2 from $34.9 billion in Q1, constraining free cash flow growth and raising questions about near-term return on investment.