Microsoft stock slips 5% after earnings, but analysts are hiking targets

Microsoft shares fell about 5% to $402.37 in early trading after investors focused on the company's elevated capital spending outlook, despite strong cloud growth and an earnings beat. The move signals concern that higher capex may pressure near-term margins and returns. The stock decline was notable but appears company-specific rather than a broad market event.

Analysis

Microsoft shares fell about 5% to $402.37 in early trading after investors focused on the company's elevated capital spending outlook, despite strong cloud growth and an earnings beat. The move signals concern that higher capex may pressure near-term margins and returns. The stock decline was notable but appears company-specific rather than a broad market event.