Topline
Former Microsoft CEO Steve Ballmer’s net worth was cut by more than $14 billion on Thursday as the company’s stock plummeted, pacing what would be the tech giant’s worst single-day loss in nearly six years after revenue from its cloud-computing unit failed to grow as expected.
Key Facts
Shares of Microsoft plunged by 12% to around $423.50 as of 12:55 p.m EST, the largest intraday loss for the stock since March 16, 2020.
Microsoft on Wednesday reported quarterly revenue of $81.27 billion and $4.14 earnings per share, surpassing Wall Street’s estimates of $80.3 billion and $3.91 EPS, according to FactSet, though revenue from its Azure unit grew 39% annually, better than the expected 38.4%, but slower than the 40% reported the previous quarter.
The company reported $29.8 billion in capital expenditures for the quarter, well above the projected $23.4 billion.
In Microsoft’s earnings call on Wednesday, Morgan Stanley analyst Keith Weiss said “one of the core issues” weighing on investors is Microsoft’s capital expenditures growing faster than expected, and that “maybe Azure is growing a little bit slower than we expected.”
Forbes Valuation
Ballmer’s fortune decreased by $14.3 billion (9.8%) to $132.3 billion, ranking him as the world’s 14th-richest person after starting the day inside the top 10 at No. 9, according to Forbes’ Real-Time Billionaires List. He now trails No. 13 Michael Dell ($133 billion), while also notably falling behind members of the Walton family and Warren Buffett.
Tangent
Meta shares rallied more than 7% on Thursday, after the company reported annual quarterly revenue growth of 24% to $59.8 billion in its latest quarter. The company said it anticipated capital expenditures of up to $135 billion as it ramped up spending to expand AI efforts, after spending $22.4 billion in the quarter, above estimates of $21.8 billion. CEO Mark Zuckerberg said during Meta’s earnings call the company would continue to “invest very significantly” in AI infrastructure, adding Meta would “roll out new products over the course of the year.”
Key Background
Microsoft shares grew more than 15% in 2025 as the world’s largest software maker benefited from a broader buildup of AI investments. The company became the second company ever valued at $4 trillion after its second-quarter earnings in July 2025, when Microsoft reported an 18% revenue growth rate after bringing in a net income of $27.2 billion. Microsoft has increased spending in recent months on data center capacity, though the company has reportedly struggled to meet demand. Last month, Reuters reported Microsoft had lowered internal expectations for AI product demand and lowered sales growth targets. The company denied the report, however, claiming it “inaccurately combines the concept of growth and sales quotas.”
What To Watch For
Microsoft, Meta and Tesla were the first of the “Magnificent Seven” to report earnings, and Apple is scheduled to post its latest fiscal data on Thursday. Alphabet and Amazon will publish earnings on Feb. 4 and Feb. 5, respectively, and Nvidia will be the last of the group to report earnings on Feb. 25.
