markets

Luke Kawa1/29/25

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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markets

J. Edward Moreno7/7/26

SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

US job growth falls far short of estimates in June; unemployment rate unexpectedly dips to 4.2%

Job growth was 57,000. Analysts foresaw job growth of 113,000; prediction markets were more optimistic, looking for job growth above 125,000 but below 150,000.

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Meta surges on report it’s starting a cloud business to sell excess AI compute

The story of the hyperscalers in 2026 has largely been “the beatings will continue until the cash flow outlook improves;” this could help change the story for Meta. Or not.

Meta CEO Mark Zuckerberg visits U.S. Capitol for Senate meetings

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