Microsoft (NASDAQ:MSFT) closed at $433.50, down 9.99% after earnings and AI capital expenditure updates. Trading volume hit 126.5 million shares, 366% above the three-month average. The S&P 500 dipped 0.17% to 6,966, Nasdaq fell 0.72% to 23,685, with Apple at $258.01, up 0.61%, and Alphabet at $338.25, up 0.67%.

Despite strong Q2 sales and earnings growth, Microsoft stock plummeted 10% due to increased capex. Intelligent Cloud unit saw 29% growth, but capex jumped 89% year over year. Trading at 26 times forward earnings, market reacts to company’s capex allocation of two-thirds to short-lived assets, like CPUs and GPUs.

Stock Advisor’s analyst team revealed the 10 best stocks to buy right now, boasting a total average return of 950%. The Motley Fool holds positions in Alphabet, Apple, and Microsoft. Market reactions to Microsoft’s capex and earnings growth are driving investor sentiment.

Read more at Nasdaq: Stock Market Today, Jan. 29: Microsoft Falls After Azure Growth Slows and AI Spending Raises Investor Concerns