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Microsoft shares rise toward a potential historic gain after earnings
Microsoft expects its AI spending to avoid a cash-burn phase even as it increases investment, supporting investor sentiment after the results.
MarketWatch reports that Microsofts stock moved sharply higher after its earnings, putting the shares on track for a potential historic gain.
The outlet attributes the surge to strong growth in Microsofts cloud business and to the companys outlook that it can fund increased AI spending without slipping into a cash-burn mode.
MarketWatch also highlights that the combination of cloud momentum and expectations around cash flow helped drive the market reaction following the report.