Microsoft earnings: Why Wall Street is so focused on capex

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Akiko Fujita News

Microsoft,Quarterly Results,Capex

Microsoft (MSFT) reported its latest quarterly results, revealing high CapEx, or capital expenditure spending, which disappointed some on Wall Street. Yahoo ...

Let's talk about another big tech company in focus today, Microsoft investors were a bit disappointed in the company's latest earnings results after the bell on Tuesday, some analysts cited the high capital expenditures or Capex spending Microsoft had in the latest quarter as a concern.It's short for capital expenditures and it's basically the funds the company uses to acquire upgrade and maintain physical assets.

And within that roughly half went to infrastructure needs with the remaining amount going to buy up CPU and GP US for its data servers. Those like Brent over at Jeffrey say spending in infrastructure needs like building and leasing data centers is justified given that those investments will be monetized over the next 15 years and beyond.But analyst at Guggenheim say there's a lot that can change over that time, especially on demand and that could affect their business.

All the spending of course is measured against the market leader on A I NVIDIA, particularly investments in their data center business because that's what the market is chasing and Brad as you know, those results aren't expected until the end of the month.MEG Energy yanks climate targets, blaming greenwashing law.

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