Microsoft The stock fell about 10% on Thursday after the earnings report disappointed some investors, leading to its biggest one-day drop since March 2020.

The move reduced the technology company’s market value by $357 billion, which stood at $3.22 trillion at the end of trading on Thursday.

this iShares expands into technology software sector exchange traded funds Plunged 5% On Thursday, the tech-heavy Nasdaq Composite ended the day down 0.7%. Not all technology fails, though.

Yuan stock Soared 10% After impressing analysts Robust results and quarterly revenue guidance on Wednesday.

Investors found some imperfections Microsoft report.

The most important growth statistic for Azure and other cloud services is 39%, below the StreetAccount consensus of 39.4%. The company expects fiscal third-quarter revenue from its more personal computing business, which includes Windows, to be about $12.6 billion, below StreetAccount’s forecast of $13.7 billion, and its implied operating margin for the new quarter is also lower than expected.

Microsoft Chief Financial Officer Amy Hood said cloud results could be higher if Microsoft allocated more data center infrastructure to customers rather than prioritizing on-premises needs.

“If I allocate all the GPUs that just came online in the first and second quarters to Azure, the KPI will be over 40,” she said.

Melius Research analyst Ben Reitzes, who has a buy rating on Microsoft stock, said on CNBC’s “Squawk on the Street” program on Thursday that Microsoft should increase its data center construction efforts.

“I think Azure has an execution problem and they need to build buildings faster,” he said.

UBS analysts led by Karl Keirstead have questioned Microsoft’s choice to secure AI computing power for products such as the Microsoft 365 Copilot productivity software plug-in. Not yet successful As much as OpenAI’s ChatGPT.

“M365 spin-off growth has not accelerated due to Copilot, many checks on Copilot do not show strong usage growth (we plan to update our own checks in case we miss usage growth), and the market for this model appears crowded and capital-intensive,” UBS analysts wrote. “We believe Microsoft needs to ‘prove’ these are good investments.”

Negativity is not universal walk through wall street. Bernstein analysts led by Mark Moerdler, who have a buy-equivalent rating on Microsoft stock, praised Microsoft’s decision.

“We believe investors need to understand that management made the smart decision to focus on what’s best for the company long-term, rather than driving the stock price higher this quarter or even last quarter and in future quarters as capacity constraints are likely to subside,” analysts wrote in Thursday’s note.

Hood called for a slight decline in capital spending in the current quarter.

watch: “AI is eating software,” says Melius’ Ben Reitzes