Google Loses $500 Billion After Earnings, Microsoft Holds Steady

Alphabet shares plunged over 13%, erasing $500 billion in market value, after a disappointing quarterly report, while Microsoft stock rose on strong results, highlighting divergent investor sentiment toward the two tech giants. Microsoft's Azure cloud sales grew 48%, roughly 300 basis points above analyst forecasts, with management guiding 49-50% growth next quarter. Capital expenditures came in about $5 billion below expectations, and revenue and profit exceeded projections, reinforcing confidence in sustained 15-19% revenue growth. Google's search revenue missed estimates at $63.4 billion versus a $64.9 billion forecast, with growth slowing to 12% amid competition from AI chatbots. Alphabet reported negative free cash flow of $9.1 billion, nearly triple Wall Street forecasts, as capital spending reached 121.4% of operating cash flow.