Wall Street Splits on Microsoft
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Microsoft just can’t win Wall Street’s trust. The stock is falling as spending fears linger.
Despite strong cloud growth and a surge in Copilot adoption, Microsoft’s latest results were overshadowed by an increase in AI spending.
Microsoft's forecast on revenue and operating margin was light, but the company sees $190 billion in 2026 capital spending, well above Wall Street's estimate.
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For students of early PC history, this isn’t even the first piece of 86-DOS history that has been newly rediscovered this decade. Just two years ago, the earliest known version of 86-DOS was rediscovered and uploaded to the Internet Archive.
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We are focused on delivering cloud and AI infrastructure and solutions that empower every business to eval-max their outcomes in the agentic computing era,” said Satya Nadella, chairman and chief executive officer of Microsoft.
Microsoft on Wednesday forecast that sales at its Azure cloud business would beat Wall Street estimates, and the software giant unveiled plans for 2026 capital spending of $190 billion, which also surpassed expectations.
Nadella says Microsoft will “exploit” its retained OpenAI rights as the new deal loosens exclusivity but keeps Azure priority.
It took some convincing, but at the start of this year, I ended a years-long relationship with Microsoft 365. I'd like to say I ditched the office suite for some nuanced reason, like I don't want Microsoft's AI assistant Copilot because I find it distracting and unhelpful,
Microsoft's voluntary retirement program will cost the company $900 million, a small fraction of its quarterly profit.