Asian markets tumble after Microsoft earnings miss expectations
Microsoft's latest earnings report spooked investors, sending Asian stocks lower on Friday.
The company ramped up its spending by 66% to $37.5 billion—tied to AI infrastructure and ambitions—which led to a 12% plunge in Microsoft's share price and erased $440 billion in market value, the biggest single-day drop since 2020.
Why does this matter?
Microsoft is betting big on AI, but investors are nervous about whether this level of spending can keep paying off—especially since nearly half of its future obligations are tied to OpenAI.
Even with strong growth in its Azure cloud business, rising costs have people questioning if profits can keep up.
What's behind the trend?
It's not just Microsoft: Amazon, Alphabet, and Meta are also planning huge investments in tech and infrastructure this year—over $500 billion combined.
All this high-stakes spending has some wondering if these companies' business models can handle the pressure long-term.