This could be a key moment for anyone interested in buying Microsoft stock.

Meta jumped, while Microsoft plunged post-earnings as investors hunt for signs that big AI investments are paying off.

Microsoft (NASDAQ: MSFT) continues to provide investors with earnings beats and strong growth in its cloud, AI and gaming segments.

In place of the monolithic Magnificent Seven trade, a two-lane race is emerging. Earnings from Microsoft and Apple on Thursday showed investors growing more skeptical of capital-intensive AI buildouts, while rewarding companies generating profits from hardware that’s already in the hands of consumers.

Professor Erik Gordon said the "AI bubble is almost as big as the planet Jupiter," and Microsoft's stock drop is a "warning of the burst to come."

Microsoft falls 6.8% after hours despite beating Q2 earnings as Azure growth slows to 39% and AI spending hits $37.5B record.

With Microsoft spending many billions on data centers, and rumors that no one is using its AI, CEO Satya Nadella shared some usage numbers.

Microsoft stock slid over 11% after Q2 earnings as investors fretted over surging AI capex and slowing Azure growth.

Microsoft was already losing momentum, with RSI peaking last summer and the shares making a series of lower highs in Q4 2025. Read more here.

Wedbush analyst Dan Ives is bullish on Microsoft's stock, but he admits there are more "skeptics" these days. "The doubters are building in the Microsoft story" even though he and his team "strongly believe the backyard of enterprise AI deployments goes through Redmond,