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[Magic-DEI-Hire]

Microsoft lost $357 billion in market cap as stock plunged most since 2020

As investors sold shares of Microsoft on Thursday, the $3.22 trillion company dragged down the software complex and the S&P 500 index.

www.cnbc.com

Microsoft shares slid about 10% on Thursday following an earnings report that disappointed some investors, prompting the stock's sharpest daily decline since March 2020.

The move trimmed the technology company's market cap by $357 billion, leaving it at $3.22 trillion by the end of Thursday trading.

Investors found a few imperfections in Microsoft's report.

The all-important growth statistic for Azure and other cloud services came in at 39%, below StreetAccount's 39.4% consensus. The company called for about $12.6 billion in fiscal third-quarter revenue from the More Personal Computing segment that includes Windows, lower than StreetAccount's $13.7 billion consensus, and the implied operating margin for the new quarter also came up short.

Microsoft's finance chief, Amy Hood, argued that the cloud result could have been higher if it had allocated more data center infrastructure to customers rather than prioritizing its in-house needs.

 

[Varteras]

 

[Schnauzer]

Microslop f….d around and found out!

 

[MDSLKTR]

 

[Simpdimples]

microslop be like

 

[LectureMaster]

Papa Phil right now:

 

[Germuso]

 

[LectureMaster]

Damn, my man Adam ain't gonna catch a breath for a while, again.

 

[Shubh_C63]

Microsoft isn't great at innovating stuff, even with AI they would rely on OpenAi.

This crisis is going to hit Microslop hard. May even become only a 3 Trillion dollar company

 

[poppabk]

Everyone when they realize that the stock slide is because investors are unhappy that MS aren't investing enough in AI.

 

[Magic Carpet]

But hey, at least they raised the price of PC Game Pass. Imagine how bad things could have been if they just left the price alone.

 

[ChorizoPicozo]

Micorslope

 

[demigod]

 

[wolffy66]

Everyone when they realize that the stock slide is because investors are unhappy that MS aren't investing enough in AI.

More like they worried about the amount they are gonna make as an ROI

 

[mckmas8808]

The hits just keep coming.

 

[ChorizoPicozo]

The hits just keep coming.

And it's not over.... "prepare to be shocked"

 

[onQ123]

That's like what $10 - $20 to them ?

 

[JTCx]

 

[Ozzie666]

At this point, they will drop windows and office, doesn't make enough compared to AI.

 

[Bark]

 

[Tacrovy]

No problema, Jez will save it all

 

[IAmRei]

Brutality

 

[Gambit2483]

No longer just a rounding error, Xbox is seen as the source of their negative earnings and subsequent drop in Market value....Yep, the chopping block is about to come out.

 

[MetalRain]

Buying Activision for 69B just to release gems like Call of Duty: Black Ops 7 and Tony Hawk's Pro Skater 3 + 4.

Xbox, off.

 

[Gonzito]

Gamepass was a mistake

 

[J Required]

No longer just a rounding error, Xbox is seen as the source of their negative earnings and subsequent drop in Market value....Yep, the chopping block is about to come out.

If you burn through close to $100 billion on acquisitions, yeah, suddenly you're not a "rounding error" anymore — you're the anchor dragging the numbers down.

Xbox would've looked a whole lot healthier if they didn't load the division with massive buyout costs and years of amortization strapped to its neck. You can't spend like a Fortune 10 giant then act shocked when the balance sheet starts coughing smoke.

At some point, the chopping block talk isn't "doom posting"… it's just basic accounting catching up.

 

[ChorizoPicozo]

At this point, they will drop windows and office, doesn't make enough compared to AI.

Those two are the Halo and Forza of MS.

 

[EDMIX]

Damn, my man Adam ain't gonna catch a breath for a while, again.

lol this is like the worse case situation for MS right now.

Imagine buying Activision for like 70 billion and Call Of Duty flops. Even if their aim was no longer exclusives and JUST sales of software, this isn't good.

I think thats GG

I don't think anything can save MS right now tbh. I can't even make up some fake fanfiction situation that even saves them. The biggest IPs they have, are flops now, they do not carry the weight that they once did generations ago and its like MS has not gotten the memo.

It would be like if Sony kept forcing Killzone flop after flop. HZD proves new IP is what consumers want and some times you have to just move on. Folks may not like HZD, but that game and the Last Of Us literally outsold both those teams past IPs, COMBINED. some times you have to call it quits and forcing Halo, Forza, Gears has its downside and we are seeing it in real time.

 

[HRK69]

 

[Robb]

 

[calico]

That's a drop of like 500 Ubisofts

 

[Cyberpunkd]

More like they worried about the amount they are gonna make as an ROI

The amount is between fucking lot and fuckton. Hilarious the stock slid because Azure grew only 40% YoY. That company is printing money.

 

[dragonyeuw]

3rd Xbox Series console increase incoming. Also raise GPU to $50 a month. Let's go all the way with this.

 

[ahtlas7]

 

[Chukhopops]

That's what you get for canceling Perfect Dark.

 

[//DEVIL//]

these faces ..

 

[Windle Poons]

Quick. Avoid the elephant in the room and sack more people, Nutella.

 

[Kikorin]

That's like lose a penny from the pocket during a walk for an average millionaire out there. Brutal.

 

[bighugeguns]

Go woke, go… HOLY FUCKING SHIT THATS A LOT OF MONEY

AAAAAAAAAAAAAAHHH!!!!!!!!

 

[DenchDeckard]

If Satya was thinking of killing / jettisoning Xbox this has magnified it ten fold.

 

[Embearded]

That's like lose a penny from the pocket during a walk for an average millionaire out there. Brutal.

No it isn't.

They still have lots of money yes, but 10% of your wealth isn't a penny.

 

[yogaflame]

 

[bighugeguns]

If this is really true, then Resetera, Reddit, games media, consultants, the entire woke clique is going to get nuked from orbit. This isn't a good thing at all.

Bullish on Neogaf, going forward, super bullish.

 

[Daniel_Mallorca1985]

 

[Shtef]

They lost $357 billion, $357 billion, and still have $3.22 trillion, its insane.

 

[Calverz]

 

[Gudji]

 

[Melon Husk]

"All you need is GamePass" woof

 

[ShaiKhulud1989]

At this point, they will drop windows and office, doesn't make enough compared to AI.

The main reason for the drop is actually AI maintenance costs and capital spending around it, it turned to be even more unbearable than the wildest Wall Street estimations. And Microsoft hasn't provided a solid explanation how they will make those burned money back, let alone turn Copilot a profit.

At this point AI slop is a huge money black hole for Microsoft and market in general. No company has a solid profitability plan and just burn the venture capital before the bubble bursts.

 

[Rocco Schiavone]

But but Phil is a genius.