"Microsoft's hiring freeze in its cloud unit has sparked concerns about its AI infrastructure investments, with shares down 24% year-to-date despite strong revenue growth."
"Capital expenditures hit nearly $37.5 billion in Q2, up 66% year-over-year, raising questions about sustainability of growth against projected spending of $170 billion in fiscal 2027."
Microsoft's shares have declined 24% year-to-date, facing scrutiny over its AI infrastructure investments. Despite reporting $81.27 billion in Q2 FY2026 revenue, a 17% year-over-year increase, a hiring freeze in its cloud unit has raised concerns. Capital expenditures reached nearly $37.5 billion in Q2, up 66% year-over-year, with projections of $146 billion for the full fiscal year. Azure's growth of 39% year-over-year has led to questions about whether spending is outpacing returns, reflected in mixed sentiment on Reddit.
Read at 24/7 Wall St.
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