Bloomberg Intelligence Microsoft Drops Most Since 2020 Amid Slowing Cloud Growth
Jan 29, 2026
Christopher Ciolino, Senior U.S. Machinery Analyst—covers Caterpillar’s surge from AI data-center power orders and record backlogs. Mandeep Singh, Global Tech Research Head—breaks down AI-driven ad trends, Meta’s revenue beat and guidance. They dig into cloud spending, GPU allocation, AI ad execution, and how data centers and ad platforms are reshaping revenue streams.
AI Snips
Chapters
Transcript
Episode notes
Cloud Growth Versus Capacity Allocation
- Microsoft grew Azure ~38% but investor expectations punished the stock due to slower cloud acceleration.
- Anurag Rana says capacity allocation to Copilot and internal R&D explains the mismatch between CapEx and cloud revenue growth.
Stick With Long-Term AI Strategy
- Don't expect Microsoft to change its long-term AI and R&D strategy because of a short-term stock reaction.
- Anurag Rana advises trusting Microsoft’s allocation to build proprietary models by 2032 and future-proof their offerings.
CapEx Value Depends On Monetization
- CapEx matters differently by company: hyperscalers (Amazon, Google, Microsoft) can monetize cloud CapEx.
- Anurag Rana says Meta’s CapEx is less clear because it lacks a monetizable cloud business like the hyperscalers.