Microsoft's fiscal fourth-quarter earnings report showed mixed results, with a 21% growth in cloud revenue but falling short of expectations for its Azure services. Despite surpassing analyst estimates with an EPS of $2.95 and revenue of $64.7 billion, Microsoft's shares dropped due to concerns over slower Azure growth and increased capital expenditures on AI infrastructure. The company's Intelligent Cloud segment, which includes Azure, grew by 19%, but its 29% growth in Azure was below the anticipated 31%. Microsoft's heavy investment in AI, totaling $19 billion in the quarter, aims to bolster its competitive edge, but the payoff may take longer than expected. The ripple effect of these results also impacted other tech giants like Meta and Alphabet, whose shares fell in after-hours trading.