Microsoft (MSFT) shares fell 6.2% after a weak current-quarter report on Wednesday.
The software technology giant beat Wall Street estimates for its fiscal second quarter, posting earnings of $3.23 per share on revenue of $69.63 billion.
The decline came after Microsoft CFO Amy Hood said the company expects revenue for the current quarter to hover between $67.7 billion and $68.7 billion, down from $69.78 billion.
Microsoft also reported a slowdown in growth in Azure and other cloud services revenue. The segment grew 31%, down from 33% in the previous quarter.
Many Wall Street analysts backed the tech giant despite the disappointing report and Azure slowdown.
Goldman Sachs analyst Kash Rangan said the company is well-positioned to benefit from the use of artificial intelligence and is the most attractive investment opportunity.
Microsoft shares fell 2% during Monday's session as part of a broader technology sector sell-off. The decline comes as Wall Street assesses the impact of its DeepSeek AI model.
The Chinese startup trains its open-source model at a fraction of the cost of competing US products.
Microsoft is down 1.5% since the start of 2025.
