Microsofts stock heads for worst day in two years after disappointing forecast
Summary
Microsoft CEO Satya Nadella speaks at a company event on artificial intelligence technologies in Jakarta, Indonesia, on April 30, 2024. Microsoft s better-than-expected earnings report wasnt enough to prevent the stocks steepest sell-off in two years, as investors instead focused on the companys forecast for the current period. That was a month before the public release of ChatGPT from Microsoft-backed OpenAI, a launch that set the stage for a boom in artificial intelligence investments. CFO Amy Hood said on a call with analysts that growth, in constant currency, will come in at 31% to 32% in the fiscal second quarter. "We view Q1 results as solid across the core Azure and Office growth businesses, though tempered by a softer Q2 outlook," analysts at BofA Global Research wrote in a report on Thursday.