Microsoft and Oracle rally on AI profits as Alphabet slides
Microsoft and Oracle are seeing their stock prices soar, with investors loving their focus on making money from AI instead of just chasing hype.
Meanwhile, Alphabet (Google's parent company) is having a rough time: its shares dropped nearly 10% after weaker-than-expected search revenue and plans to ramp up spending.
Microsoft, Oracle gain, Alphabet search slows
Microsoft's stock climbed more than 3% after hours thanks to strong free cash flow and financial discipline.
Oracle's shares shot up nearly 11% after it announced plans to limit borrowing and projected positive cash flow in the second half of fiscal 2028, a move that signals long-term stability.
On the other hand, Alphabet's slower search growth (12% instead of the expected 14.7%) and rising costs have investors worried about whether it can keep funding big AI projects without hurting profits, even though Google Cloud is doing well.