Microsoft (MSFT) Loses 10% Amid Heavy Spending

We recently published 10 Stock Titans With Massive Losses. Microsoft Corp. (NASDAQ:MSFT) was one of the worst performers on Thursday.

Microsoft saw its share prices drop by 10 percent on Thursday to close at $433.50 apiece as investors resorted to a combination of profit-taking following five straight days of gains, while turning cautious over its heavy spending and exposure to OpenAI.

In an earnings call during the day, Microsoft Corp. (NASDAQ:MSFT) said that net income in the second quarter ending December 31, 2025 jumped by 59.5 percent to $38.46 billion from $24.1 billion in the same period a year earlier, while revenues grew by 17 percent to $81.3 billion from $69.6 billion year-on-year. Of the total, cloud revenues surged by 26 percent to $51.5 billion.

Photo by dennizn on shutterstock.com

However, the strong performance was overshadowed by a significant 66 percent jump in capital expenditures during the year—at $37.5 billion—especially with Microsoft Corp.’s (NASDAQ:MSFT) 45 percent OpenAI backlog.

In an interview with CNBC, Jefferies analyst Brent Thill raised concerns about the technology giant’s exposure to OpenAI, saying that the backlog “is really good, but the disclosure that OpenAI is 45 percent of their backlog, it goes back to the situation where, ‘Can OpenAI achieve these financial goals to pay Oracle, Microsoft and many of the providers?’”

Previously, Microsoft Corp. (NASDAQ:MSFT) forecasted capex of $140 billion for the fiscal year ending June 2026.

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Disclosure: None. This article is originally published at Insider Monkey.