Microsoft shares fell sharply after hours following its latest earnings, as investors focused on slowing Azure growth, rising infrastructure costs, and the company’s deepening reliance on OpenAI. The sell-off came despite Microsoft beating Wall Street expectations and reporting strong headline financials.

Microsoft shares slid more than 6% after hours despite a strong earnings beat as investors questioned the near-term return on the company's surging AI-driven capital spending.

The drop in Frankfurt trading was broadly in line with Microsoft’s decline in U.S. after-hours trading following the release of

Azure and other cloud services, Microsoft's most closely watched segment, saw revenue surge 39 percent, roughly in line with expectations. The company said demand for cloud services continues to exceed available supply.

Microsoft (MSFT) closed at $497.10, down nearly 2%, as investors rotated out of AI-heavy mega caps following a volatile week for technology stocks. The decline came just days after Microsoft unveiled its MAI Superintelligence Team, a new project ...