Microsoft: 48% Azure Growth And Still Not Enough Capacity (NASDAQ:MSFT)

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.

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.

Microsoft (MSFT) shares fell 1.54% to $521.96 after announcing a $25B debt offering, including $1.28B in annual fixed-rate interest. Proceeds may fund capital spending, acquisitions, or refinancing. The company reported $63.9B in cloud revenue and $92.3B in total revenue for the September quarter. GuruFocus assigns MSFT a GF Score of 99, noting profitability and growth but also a severe warning sign.

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.