Microsoft shares slip ahead of Q1 earnings as AI capex scrutiny rises
Microsoft shares dipped slightly in premarket trading as investors prepare for its Q1 earnings alongside other Big Tech peers, contributing to a combined options-implied move exceeding $750 billion in market capitalization. Stifel warned that consensus revenue and EPS forecasts for Microsoft remain too high ahead of potential AI infrastructure spending guidance.
1. Premarket trading and implied market move
Microsoft shares slipped slightly in premarket trading alongside Alphabet, Amazon and Meta as Nasdaq futures rose 0.4%. Options traders imply a combined market capitalization swing exceeding $750 billion, signalling heightened volatility for the post-close earnings session.
2. Analyst concerns on revenue and AI capex
Stifel flagged that consensus revenue and EPS forecasts for Microsoft remain elevated, raising concerns ahead of potential announcements on AI infrastructure spending. Investors are watching for any upgrade to massive capex plans that could pressure near-term returns on AI investments.