‘AI momentum building in Redmond’: Here’s how Wall Street is reacting to Microsoft’s earnings report

• Microsoft most recent earnings results failed to impress investors, with the stock falling about 3%.
• But Wall Street analysts are bullish on the company’s heavy focus on artificial intelligence.
• “AI offerings are expected to contribute meaningfully for both Azure and Office,” Bank of America said.

Microsoft’s fiscal fourth-quarter earnings report failed to jolt its stock price higher as investors come to terms with the gradual ramp-up of its new artificial intelligence offerings.

Shares of Microsoft fell about 3% on Wednesday despite it beating both revenues and profit estimates. The company saw revenue grow 8.3% year-over-year to $56.2 billion in the quarter, while its GAAP earnings per share of $2.69 beat analyst estimates by $0.14.