Microsoft reported quarterly results featuring 43% growth in Azure cloud platform revenue, with earnings per share beating expectations and shares climbing 7% after hours. Meta posted earnings per share of $6.18 versus the expected $7.22, raising the lower bound of its 2026 capital expenditure guidance to $130-145 billion, which sent its stock down 7%. Wall Street analysts expressed impatience regarding AI return on investment at Meta, with some characterizing AI as a « glorified search tool » and questioning when the technology would drive meaningful consumer behavior changes. Mark Zuckerberg emphasized the company’s business model flexibility, mentioning plans to rent out excess computing capacity, a strategy that left analysts unconvinced given Meta’s simultaneous purchases of third-party capacity. The contrast between the two tech giants highlights a turning point where AI investments are beginning to deliver tangible returns for Microsoft while remaining uncertain for Meta.
Source: Read the original article
