How the Microsoft share price climbed in October as Alphabet, Amazon, and Meta plunged

Microsoft announced a voluntary exit offer for 60,000 employees, expecting fewer than 5% to accept. The tech company is increasing AI infrastructure investment, with capital expenditure forecasted above $50 billion for the quarter ending in December. Microsoft reported quarterly revenue of $92.3 billion, up 19% year-on-year, and free cash flow of $18.6 billion.

Nasdaq Composite fell as investors sold tech shares. Intel's Q4 outlook missed estimates due to supply constraints, though revenue and profit met/exceeded forecasts. Microsoft priced $25B in debt for capital spending and share buybacks, expecting $50B in total spending by fiscal 2027.

Microsoft reported Q1 FY27 revenue of $92.3B, up 19% Y/Y, with Azure revenue growing 48%. Eli Lilly's Q3 revenue rose 39% Y/Y to $24.4B, driven by Mounjaro and Zepbound. Samsung's Q3 revenue surged 127% Y/Y to ₩195.3T (~$146B), with a 55% operating margin.

Three analysts raised Microsoft's price target to $650 after its Q1 revenue grew 19% YoY to $92.3B, with cloud revenue up 30% and Azure up 48%. Analysts cited strong growth and margin upside. Microsoft's CFO reported results exceeded expectations in revenue, income, and EPS.

Amazon (AMZN), Intel (INTC), and Alphabet (GOOG) shares fell after reporting earnings that raised concerns about AI spending and cash flow. Intel's outlook highlighted PC market concerns, while Alphabet's search advertising growth slowed. Amazon reported significant cash outflows. Microsoft (MSFT) stood out with strong Azure growth and positive free cash flow. Investors are focusing on AI investments' financial returns.

Microsoft reported a 2% decline in Xbox content and services revenue, including Game Pass, for Q1 2027. First-party content saw a modest 1% increase, while hardware revenue dropped 14%. The company attributes the struggles to the end of the current console generation.