Microsoft Stocks Decline With $1.28 Billion in Annual Fixed Coupons

Nvidia invested $3B in Meta, expanding AI partnerships. Meta plans $97.5B stock offerings for AI and infrastructure projects. Alphabet's Q3 revenue rose 25%, but free cash flow turned negative. Microsoft reported 19% revenue growth, 48% Azure growth. Amazon's AWS grew 39.3%, with $578B backlog. Apple acknowledged iPhone Duo display issues. Retail sentiment shifted for NVDA, META, GOOGL, MSFT, AMZN.

Estée Lauder (EL) announced a long-term partnership with Microsoft (MSFT) on October 30 to enhance AI integration and build a unified data platform. The initiative aims to improve consumer insights, decision-making, and productivity, with Copilot deployed to over 14,000 employees. EL shares fell 2.5% and MSFT shares dropped 1.5% on the day of the announcement.

Microsoft reported FY2027 Q1 revenue up 19%, operating income up 21%, and operating margins near 50%. Azure grew 48%, with guidance for 49–50% in Q2 despite capacity issues. Operating cash flow rose 29%, but capex remains a concern. The company's growth prospects support its premium valuation, according to an analyst.

Nasdaq fell 2.9% to 25,437, its steepest single-day decline since March 2025, turning a weekly gain into a 2% loss. Intel (INTC) dropped 28.6% after weak guidance, while other tech stocks like AMD (AMD) and Nvidia (NVDA) also declined. Alphabet (GOOGL) and Amazon (AMZN) reported slowing growth, while Microsoft (MSFT) saw cloud revenue growth. The Magnificent 7 stocks showed technical weakness. Crude oil rose, and bond yields fell as investors sought safety.

U.S. Secretary of State Marco Rubio stated that recent changes to U.S. work visa rules are global and not targeted at India. The U.S. Labor Department suspended six major IT outsourcing firms, including Infosys, Tata Consultancy Services, and Wipro, from the PERM program. Rubio emphasized the measures aim to protect American workers and address fraud in business-related immigration programs. India has expressed concerns, stating the measures do not support shared objectives.

Microsoft (MSFT) issued $25 billion in senior notes on Oct. 29 to support AI infrastructure. The company plans $170 billion in capital spending for the fiscal year. Moody's projects 18%-19% revenue growth, reaching $466 billion by fiscal 2028. The bond offering includes 5.20% 5-year, 5.55% 10-year, and 6.25% 30-year notes.