BUZZ - Microsoft shares rise as cloud business growth outlook eases spending concerns

October 29 - ** Microsoft MSFT.O shares rose more than 4% in pre-market trading after the company forecast strong growth in its cloud business (link) and reported free cash flow that exceeded expectations, easing concerns about artificial intelligence spending.

** Free cash flow for the first fiscal quarter reached $18.6 billion, far surpassing Visible Alpha’s estimate of $8.54 billion, giving the company financial room for its large-scale artificial intelligence investments.

** According to Visible Alpha, the company expects second-quarter Azure revenue growth to reach 49%-50%, above the market expectation of 47.6%; LSEG data shows that total revenue forecasts of $96.0 billion to $97.1 billion are also above the expected $95.6 billion.

** Barclays analysts said: “Microsoft has the best of both worlds: it can gain stronger growth from artificial intelligence without bearing high debt risk.”

** Year to date, Microsoft shares have risen 9.8%, while the Nasdaq Index .IXIC has gained 14.2%.

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