1211 ET - Microsoft's 4Q print should provide investors some confidence amid swirling fears around heavy artificial-intelligence spending, D.A. Davidson analyst Gil Luria writes in a note. Azure growth accelerated 43% year-over-year and is expected to accelerate further, while the company says free cash flow ought to remain positive. Expected capital investments this year are unchanged, while the CapEx estimate was actually lowered due to an accounting change. This sets Microsoft apart from tech peers whose boosted CapEx estimates and pressured or negative free cash flows have put traders on their toes. The report "should not only change the narrative on Microsoft, but also communicate that the AI buildout is in responsible hands," Luria writes. Microsoft gains 16% to $454.73.
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Microsoft's 4Q Should Inspire Confidence Around AI Buildout
Dow Jones07-31 00:11
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