Microsoft exceeded revenue and earnings expectations in its latest quarter, generating $81.3 billion in revenue, up 17% year over year, and $4.14 earnings per share, a 24% increase. However, its stock fell nearly 10% due to a less optimistic outlook. A large portion of Microsoft’s backlog comes from OpenAI, posing concentration risk. Azure’s growth may slow due to capacity constraints. Microsoft’s capex is increasing, particularly for AI infrastructure. Despite the stock price drop, Microsoft’s valuation is more attractive now.

Read more at Nasdaq: 5 Takeaways From Microsoft’s Latest Earnings Report