Microsoft Stock Slides As Weakened Outlook Reverses Earnings Jump

Microsoft  (MSFT) – Get Free Report shares slumped lower Wednesday after the tech giant’s near-term outlook for its key cloud computing business offset a better-than-expected December quarter earnings report.

Shares slipped lower in after-hours trading last night, in fact, when the group forecast current quarter revenues for its intelligent cloud division of between $21.7 billion and $22 billion, a tally that missed Refinitv forecasts.

Investors had originally cheered Microsoft’s December quarter gains, particularly with revenue from Azure, its flagship cloud division, rising 31% from last year and topping Street forecasts. The growth rate for that unit continues to decline, however, following a recent run of advanced in the mid to high 40-percent range as companies pull back on digital infrastructure spending.