By Dave Kovaleski
Publication Date: 2026-02-03 01:30:00
Microsoft stock had a bad day on Thursday, but analysts remain bullish.
Microsoft (MSFT 1.52%) stock was in free fall on Thursday, dropping more than 12% despite posting earnings Wednesday afternoon that appeared to be strong on the top and bottom lines.
The revenue and earnings numbers beat estimates in blowout fashion. The technology giant saw revenue climb 17% to $81.3 billion, while net income jumped 60% to $38.5 billion, or $5.16 per share, which blew away estimates of $3.92 per share.
Image source: Getty Images.
Microsoft’s cash cow, its cloud computing business, crossed $50 billion in revenue for the first time, up 26% year over year. Its intelligent cloud business, which primarily encompasses its artificial intelligence (AI) cloud business, including Azure, jumped 29% to $32.9 billion. Azure, the largest part of the intelligent cloud pie and the growth driver, saw revenue increase 39% in the quarter.
Again, these look like good numbers, but Microsoft investors saw some…
