In early trading on Thursday, shares of Microsoft (MSFT.O) and Meta (META.O) listed on the Frankfurt Stock Exchange experienced a decline, even as both U.S. tech giants reported earnings that exceeded Wall Street expectations. Microsoft issued a cautionary forecast, projecting slower growth for its cloud computing division, Azure, which has been a crucial growth driver for the company. Meanwhile, Meta, the parent company of Facebook, highlighted a “significant acceleration” in artificial intelligence-related infrastructure expenses anticipated for the coming year, raising concerns among investors about potential impacts on profitability.
By 0711 GMT, Microsoft’s stock had dropped 5.1%, while Meta’s shares fell by 2.6%. This downward trend extended to Nasdaq futures, which plummeted over 1%, reflecting broader apprehensions in the tech sector. Analysts will be closely monitoring how these companies navigate the challenges posed by increased operational costs and shifting market dynamics in the coming quarters.
