Microsoft (MSFT) – Get Free Report shares were slipping hours even as the software giant easily beat estimates with its latest quarterly results.
The shares have soared in the last year, largely because of its aggressive adoption and use of Artificial Intelligence capabilities.
Earlier in January, Microsoft’s market capitalization topped $3 trillion, overtaking Apple as the most valuable U.S. stock.
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Microsoft earned $2.93 per share,up from $2.32 a year ago.
Revenue of $62 billion was up 18% from a year ago.
Despite the bullish results, shares were off about 0.7% after hours after closing at $408.59, down 0.3%. Early in the day, Microsoft hit an all-time high of $413.04.
AI is the fuel for the company’s growth
The revenue gains were due mostly to expansion of its Cloud and artificial capabilities. AI is expected to fuel Microsoft’s market share among enterprise customers not only cloud adoption but also in its search capabilities.
But competition is going to increase as well from the likes of Google-parent Alphabet (GOOGL) – Get Free Report, which reported this afternoon, Facebook parent Meta Platforms (META) – Get Free Report, and Amazon.com (AMZN) – Get Free Report
The technology, which can answer questions, create images and write code, has been heralded for its potential to disrupt businesses and create trillions of dollars in economic value, The New York Times reported earlier this month.
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