Microsoft (MSFT.O , opens new tab predicted quarterly growth for its Azure cloud platform below estimates on Tuesday and said its capital spending would rise this fiscal year, in another sign the payoff in hefty AI investments may take longer than first thought.
Shares fell 7% after the company gave the spending forecast on a call with analysts but quickly pared losses to trade down 3% after it said Azure growth would accelerate in the second half of fiscal 2025.
