Shares of technology companies fell sharply as the sheen continued to come off artificial-intelligence stocks.

Shares of Microsoft slid about 6% after the software giant's sales projection for the current quarter lagged Wall Street expectations, dashing hopes that AI investments would result in a bonanza. Nonetheless, one brokerage said the long-term outlook for Microsoft's AI business was healthy.

"Microsoft is by far the best-positioned name in software to build a large and durable enterprise software business around the new capabilities enabled by Generative AI," said analysts at brokerage Morgan Stanley, in a note to clients.

Meta Platforms fell 4.1% amid concerns about the Facebook parent's AI investments.

Server maker Super Micro Computer, one of the early AI winners, continued a rout related to its former auditor, Ernst & Young's warnings about the reliability of its accounts.

Shares of Uber Technologies fell 9.3% after the ride-hailing company reported quarterly bookings shy of expectations.

Amazon shares rallied in after-hours trading as the online retail giant reported third-quarter earnings that beat Wall Street estimates.

Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

10-31-24 1748ET