Microsoft and Oracle shares 20fall by more than %, while cloud growth continues
Microsoft and Oracle shares 20fell by more than %. Both companies saw strong growth in revenue from cloud and AI services, while concerns were also raised about infrastructure costs and competition.
![Microsoft and Oracle shares 20fall by more than %, while cloud growth continues]/blog-images/gen-f54f1ed9-a6a8-4462-979c-d12c8ba137d5.avif)
Microsoft and Oracle shares 20fell by more than %. Both companies are reporting strong growth in cloud and AI services. The market reflected the recent share-price correction.
Microsoft disclosed that revenue from its Azure cloud platform 40increased by %. The company said capacity constraints had limited some shipments. It reported that capital expenditure remained high.
Oracle reported that revenue from cloud infrastructure services increased 84% year over year. The company said revenue related to cloud and AI was growing rapidly. It also said the scale of infrastructure investment was increasing.
The two stocks were presented by some analysts as undervalued buying opportunities following their recent share-price declines, despite strong revenue growth. The rationale cited included the resilience of cloud revenue and the expansion of AI services. Meanwhile, rising infrastructure costs and intensifying AI competition were also mentioned as risks.
The report said that performance figures and cost items pointed to a gap between current share prices and earnings. It added that investors should wait for the next earnings release and check cost trends before making a specific investment decision.
Sources: The Motley Fool,Yahoo Finance
Bullstory synthesized this report from the linked sources. AI may have assisted the writing process. Check the original reports for factual confirmation.