Markets
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Luke Kawa

Microsoft tumbles after its AI-enhanced cloud business fails to make it rain

Shares of Microsoft initially tumbled nearly 6% after its critical Azure cloud business brought in slightly less money than expected in the final three months of 2024. The stock since pared much of those losses.

The 31% growth (in constant currency terms) for that segment matched the lowest analyst’s estimate.

Adjusted earnings per share of $3.23, however, managed to beat the projected $3.12.

While AI may be additive to the company’s returns, that contribution wasn’t big enough or fast enough this quarter. Chairman and CEO Satya Nadella said that the firm’s AI business has an annual revenue run rate of $13 billion; AI tools added 13 points to Azure’s revenue growth this quarter, one percentage point better than the prior quarter.

These AI-linked outlays are poised to increase, management said.

“We expect capital expenditures to increase in coming years to support growth in our cloud offerings and our investments in AI infrastructure and training,” according to the 10-Q.

Separately, Microsoft is saying that DeepSeek ripped off OpenAI’s ChatGPT, but added one of those models to its cloud nonetheless.

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Nia Warfield, Luke Kawa
9/26/25
US stocks end a down week with a gain

An up day but a down week for the benchmark US stock index.

Cowboy Riding Bucking Steer
markets
Luke Kawa

Crocs rises on new marketing campaign for HeyDude brand starring Sydney Sweeney


Sydney Sweeney has great... feet?

Shares of Crocs are rising after the footwear company’s HeyDude brand unveiled a new marketing effort starring actress Sydney Sweeney for its Austin Lift shoe line.

Sweeney’s controversial ad campaign for American Eagle spurred a massive jump in the denim maker’s shares, caught the attention of the president, and prompted “an uptick in customer awareness, engagement, and comparable sales,” per American Eagle’s management.

Sweeney was first announced as HeyDude’s global spokesperson in August 2024, and doesn’t seem to have given the brand a major boost so far.

Max Knoblauch
9/26/25

Ford and GM reach 52-week highs as EPA seeks to repeal emissions rules

Shares of Ford and GM are each trading at 52-week highs on Friday, as investors pile into gas-powered US automakers with the looming end of the EV tax credit and the Trump administration’s potential repeal of vehicle emissions standards.

A lobby representing Ford, GM, and nearly all other major automakers has expressed support for the EPA’s proposal to repeal the long-standing endangerment finding that declared greenhouse gases a threat to human life. The finding provides the legal foundation for the EPA to regulate vehicle emissions.

Yesterday, EV giant Tesla urged the Trump administration to keep the standards in place.

Friday afternoon saw Ford shares reach their highest level since July 2024, while GM’s stock hit highs not seen since January 2022.

Citi equity analysts on the key valuation issue facing the market.

Citi’s US market analyst on the key valuation test facing the market

“It kind of comes down to, what inning do you think we are in this AI game?”

Matt Phillips9/26/25
markets
Luke Kawa

GameStop surges as company offers promotions to boost launch of “Pokémon” Mega Evolution set

GameStop is jumping as the company offers promotions to boost interest for today’s North American launch of the Mega Evolution set of the “Pokémon Trading Card Game.”

Options activity is a little more tilted to the bull side than usual. Over the past month, a little less than four calls have changed hands for every put option. As of 10:22 a.m. ET, that ratio is over five to one.

It’s a big day for collectibles fans and gamers alike: beyond the “Pokémon TCG” drop, there are also new collections from “Yu-Gi-Oh!” and “Magic: The Gathering” being released and “EA SPORTS FC 26,” as well.

As we’ve written, “Pokémon” trading cards have been skyrocketing in value, and GameStop’s collectibles business has been accelerating. These are two sides of the same coin.

Mega Gardevoir... here I come!

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