Microsoft shares slipped Tuesday after the tech giant reported quarterly profit climbed but its crucial cloud computing unit missed expectations.
Microsoft said it made a profit of $22 billion on $64.7 billion in revenue in the recently ended quarter, up from the same period a year earlier.
Cloud unit revenue of $36.8 billion, however, disappointed investors and shares slid more than five percent to $401.06 in after-market trades.
Money brought in from cloud computing has driven blockbuster earnings quarter after quarter, and a hint that stellar growth may be slowing was enough to give investors pause.
Microsoft is among the major contenders in the fierce race to build out artificial intelligence systems, pouring billions of dollars into the technology in the hope it will pay off.
Microsoft is among the best positioned to monetize generative AI, having moved the fastest to implement it across all its products, and pouring $13 …