Microsoft Stock Is Sliding Thursday: What's Going On?

Microsoft Corp MSFT shares are trading lower Thursday on the heels of the company’s first-quarter financial results.

• Q1 Revenue: $65.6 billion, versus estimates of $64.51 billion

• Q1 EPS: $3.30, versus estimates of $3.09

Total revenue was up 16% year-over-year. Productivity and Business Processes revenue was up 12% year-over-year, Intelligent Cloud revenue was up 20% year-over-year and More Personal Computing revenue increased 17% year-over-year.

Microsoft’s forward guidance appears to be weighing on shares Thursday. On a conference call with analysts and investors following the print, Microsoft guided for fiscal second-quarter revenue of between $68.1 billion and $69.1 billion. Analysts had been anticipating $69.83 billion, per CNBC.

Microsoft reportedly said that some suppliers were running behind schedule on deliveries to the company related to data center infrastructure.

"I feel pretty good that going into the second half of even this fiscal year, that some of that supply-demand will match up,” Satya Nadella, CEO of Microsoft, said on the call.

Check This Out: Microsoft Q1 Earnings Highlights: ‘AI-Driven Transformation Is Changing Work,’ Company Beats Revenue, EPS Estimates

Microsoft also guided for Azure growth of 31% to 32% for the second quarter, which was weaker than some analysts were anticipating, and below the 33% growth the company reported in the first quarter.

"We are expanding our opportunity and winning new customers as we help them apply our AI platforms and tools to drive new growth and operating leverage,” Nadella said.

Following the print, Morgan Stanley analyst Keith Weiss maintained Microsoft with an Overweight and raised the price target from $506 to $548. Piper Sandler analyst Brent Bracelin maintained an Overweight and set a price target of $470.

MSFT Price Action: Microsoft shares were down 4.30% at $413.94 at the time of publication Thursday, according to Benzinga Pro.

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