If I Could Buy Only One Cloud Computing Stock, This Would Be It

Technology stalwart Microsoft (NASDAQ: MSFT) released impressive second-quarter fiscal 2025 financial results on Wednesday, Jan. 29, with revenue and earnings surpassing analyst consensus expectations. Revenue was up 12% year over year to $69.6 billion, while adjusted earnings per share (EPS) rose 10% year over year to $3.23.Despite the robust performance, Microsoft's shares are down by nearly 9% since the earnings release (at the time of this writing). Investors are disappointed with weaker-than-expected revenue guidance for the third quarter of fiscal 2025. The company is also seeing a slowdown in its Azure cloud services business, triggered by capacity constraints.And it has been hurt by the marketwide turbulence caused by the announcement of Chinese start-up DeepSeek, an artificial intelligence (AI) model with capabilities claimed to be comparable to OpenAI's GPT-4 at almost 95% lower costs. Doubts are being cast on DeepSeek's claims, but investors have also become concerned about the potential sustainability and lifetime value of Microsoft's AI investments.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool