Microsoft shares fall 7% after Q2 earnings over record AI spending – What’s worrying Wall Street?

Microsoft shares dropped in extended trading on Wednesday even after the tech giant reported strong second-quarter earnings. US stock futures edged lower on Wednesday evening as investors absorbed a mix of results from major tech companies and the Federal Reserve’s latest policy move, while staying cautious ahead of more corporate earnings later this week.

Microsoft Corporation shares fell 7% in after-hours trading. The software giant reported slower growth in its cloud business during the fiscal second quarter and soft guidance for operating margins in the current quarter, in contrast to Meta and Tesla, which saw a rise in share price.