If you are tracking a company's performance by its stock price it's kind of laughable; share holders are a mentally unstable bunch, and unless you sacrifice your company for short term profits they really don't get excited. There is no long term outlook for companies any more, and MS' long term strategy I think, is getting stronger. The cutting of the 18k employees is just showing they are narrowing their focus and really concentrating on the areas they think will be big; cloud, and mobile.
And as somebody in the cloud space myself (for work), I look at Azure with great interest because of their investment into it. We are a huge Microsoft customer already, and we can leverage that size and contract for our benefit with Azure and licensing; Amazon can't beat them on that, and if I get the enterprise tools I want... it's a no brainer. AWS has a lot of features, but the vast majority of them aren't useful at this point for our needs... we need pure infrastructure, autoscaling, and database services -- all of which are available through Azure, and all of which are available for a lower cost.