Microsoft (MSFT) stock jumped 15.51% on July 30 after the company delivered a stronger-than-expected fiscal fourth-quarter earnings report, easing investor concerns about its massive AI investments. While the software giant comfortably beat Wall Street's expectations for both revenue and earnings, the biggest catalyst was the accelerating growth of its Azure cloud business.
For much of this year, Microsoft shares faced pressure as investors questioned whether the company's aggressive AI-related capital expenditures would generate sufficient returns. The elevated spending weighed on margins and free cash flow, raising doubts about how quickly those investments would translate into meaningful revenue and profits.