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Microsoft's (MSFT) fiscal second quarter revenue results beat expectations, but its stock took a slight dip as the company's cloud revenue growth fell short.
Angelo Zino, CFRA Research senior equity analyst, joins Market Domination Overtime to discuss the results.
Zino points out that the growth of Microsoft's Azure, while still relatively solid, shows signs of deceleration, with second quarter cloud revenue reported at $40.9 billion, missing estimates of $41.1 billion. He notes this may account for the stock dip, as the market's focus is primarily on the company's artificial intelligence (AI) growth.
"AI is kind of the entire story at this point in time for Microsoft," Zino says. "All eyes are going to kind of be hinging on what [Microsoft CEO] Satya [Nadella] has to say ... on the CapEx direction."
Zino also discusses concerns about how the rise of cheaper AI models, like those from DeepSeek, could impact Microsoft’s pricing strategy.
To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here.
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This post was written by Josh Lynch