It’s a tale of two different megacaps when it comes to earnings season artificial intelligence.
Meta platforms Investments in AI have soared after showing signs of boosting the bottom line Microsoft Shares fell as the company struggled to justify its latest spending plans to investors and pointed to a slowdown in its cloud segment.
Money flowing into AI and new technology a a major source of debate On Wall Street, investors want to see companies reaping the benefits of last year’s massive spending spree.
The meta was visible obtaining investor approval Continue to invest in AI. Shares of the social media giant rose 8% strongly instructed and he said he plans to allocate $115 billion to $135 billion in AI spending this year.
This is almost double the amount spent in 2025.
In past quarters, investors have expressed concern about the company’s ambitious spending. However, the company’s 24% year-over-year revenue growth, driven primarily by online advertising, appears to have eased earlier concerns.
chief executive officer Mark Zuckerberg The company suggested it was working on a number of new products this year and said the investment would support its “build” mission. personal super intelligence.
Meta and Microsoft one day stock chart.
But while investors have rewarded Meta’s spending plans, Microsoft’s shares fell 11%.
Software maker Azure showed slower growth in its cloud segment, which fell to 39% growth from 40% growth in the company’s first fiscal quarter. Investors are watching the segment closely as a tool to gauge enterprise AI demand.
Meanwhile, capital spending and finance leases rose 66% to $37.5 billion in the quarter, beating the $34.31 billion expected by analysts polled by Visible Alpha, as the company supports demand in its cloud and AI segments.
The company also said it is struggling with computing capacity constraints as demand outstrips supply.
Microsoft CFO Amy Hood says Azure would have grown 40% if the company had introduced all of its new GPU chips to its Azure business in the first and second quarters.