By Jeff Kilburg
Publication Date: 2026-01-30 15:40:00
Microsoft (MSFT) reported fiscal second-quarter earnings after the bell on Wednesday, beating Wall Street estimates on both the top and bottom lines, with cloud revenue vaulting above $50 billion for the first time. But Microsoft’s stock tumbled 12.5% to a low print of the day of $421, slicing off more than $400 billion in market value. As investors seemingly panicked about the company’s ballooning artificial intelligence-fueled spending and potential OpenAI vulnerability, I want to use options to create an income stream and capture a snapback in this $3.2 trillion tech darling. Investors are concerned about high capex and OpenAI reliance: Microsoft’s capital expenditures for the quarter were $37.5 billion, higher than expectations, due to relentless investment in data centers and AI infrastructure. The company, led by CEO Satya Nadella, also disclosed that nearly half of its massive commercial backlog is attributable to OpenAI, raising concerns about concentrated customer risk….