Microsoft and Google: Results show a cautious market reaction to AI spending

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By Jess Jones On paper, Microsoft and Google both reported strong quarterly earnings today and beat expectations. But the tech giants failed to satisfy the market, with shares in both companies down in after hours trading and before the open. The stocks took a hit as investors fretted over the steep cost of artificial intelligence (AI) and a frosty advertising market. In its second quarter, Microsoftreported revenue of $62bn, up 18 per cent from a year earlier and slightly ahead of expectations of $61.1bn. Its net income jumped 33 per cent to $27bn. Shares initially dropped 1.5 per cent follow…

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