After a $2.3-trillion Nasdaq 100 wipeout, investors are nervously awaiting Microsoft Corp.’s earnings report to see whether the software maker can turn the tide.
Traders are increasingly concerned that tech firms aren’t yet seeing returns from heavy investments in artificial intelligence. Shares in Alphabet Inc. slid last week after the Google parent reported higher-than-expected spending, adding to a broader selloff for Big Tech. That’s raised the bar for Microsoft, which is trading at a fairly hefty valuation of about 32 times projected profits and needs to show AI-related spending is translating into sales growth for its Azure cloud business.
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