Microsoft shares jump 7% as it boosts capital spending plans
Microsoft said it expects positive free cash flow in the new fiscal year as it changes its accounting approach for data centers and office buildings. Shares jumped 7% after the company signaled rising demand behind its expanded capital spending plans.
Microsoft shares surged 7% following its fourth-quarter results, as the company said it now expects positive free cash flow for the new fiscal year after changing its accounting treatment for data centers and office buildings.
Investors read the increased capital spending plans as a sign of robust demand rather than a warning sign, reinforcing hopes that heavy investment in AI infrastructure is starting to pay off.
The move stood in sharp contrast to Meta, whose shares fell the same day on investor unease over its own AI spending. Analysts say markets are now drawing a clear line between big tech companies based on spending discipline.
Read next
Why KiwiSaver members are $10b richer, as top fund returns 98% in a year
Morningstar's latest KiwiSaver survey shows quarterly returns ranged from an average 3.3% for conservative funds to 11.9% for the aggressive category. In total, members' assets grew by $10 billion over the year.
South Korean stocks plunge as AI-driven chip rally unwinds
Alphabet's free cash flow turns negative, putting Amazon, Meta and Microsoft on notice
Australian PM's data centre plan hits roadblock in energy debate
