Cloud Stocks Rally and Then Retreat After Microsoft Results
Traders work on the floor of the New York Stock Exchange.
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The shares of companies involved in cloud computing slumped late on Tuesday after Microsoft Corp.’s results rattled nerves with a disappointing forecast.
MongoDB Inc., Datadog Inc. and Snowflake Inc. were among stocks that jumped more than 4% in extended trading, after sales in Microsoft’s cloud division exceeded the average analyst estimate. However, the stocks turned negative after Microsoft said growth in its Azure cloud-computing business will decelerate by 4 or 5 percentage points in the current quarter.