Microsoft's Cloud Growth Slows as Big Tech Shares Waver

Microsoft shares have fallen along with other tech stocks as investors shift towards smaller companies ahead of expected rate cuts. The company's Q4 earnings showed slower growth in its cloud business, particularly in Azure and AI services.

However, Microsoft saw strong growth in the gaming sector and positive developments in Windows licenses, products, and cloud services. The outlook for Q1 2025 fell short of expectations.

In the broader tech industry, the 'Magnificent Seven' stocks, including Microsoft, have lost $2.6 trillion in market cap over 20 days, while the crypto market cap rose. Despite the slowdown in cloud growth, Microsoft's total revenue grew 15%, benefiting from a stabilizing PC market.

The company continues to invest heavily in AI infrastructure to support demand for AI services, and its Azure AI is now being used by over 60,000 customers. With the ongoing volatility in the market, investors will closely monitor Microsoft's performance and its ability to capitalize on long-term monetization opportunities.