Why Microsoft’s stock dropped today. Analyst lists core issue for investors

Microsoft’s stock plunged as much as 11% to $429.24 on Thursday, fueling investor concerns. This was the biggest intraday slide for the company since March 2020. On Wednesday, the Satya Nadella-led tech conglomerate reported its second-quarter earnings, with cloud revenue topping $50 billion for the first time. Capital expenditures hit $37.5 billion in the period, up 66% from a year earlier and exceeding analyst estimates for $36.2 billion.

Microsoft’s Azure cloud division reported a 38% increase in quarterly revenue on a constant-currency basis.