Azure GrowthThe guidance for the next quarter's Azure growth came in below expectations due to continuing capacity constraints, which may impact short-term performance.
Financial PerformanceMicrosoft is facing a contraction in gross and operating margins due to significant investments in AI infrastructure and costs related to the Activision Blizzard acquisition, which could pressure profitability.
Return On InvestmentMicrosoft is at a significant cost disadvantage in the data center build-out race, as Azure has the least diversity of AI accelerators compared to competitors, leading to concerns about the return on investment.