By RIA Team
Publication Date: 2026-01-30 09:48:00
On the heels of strong fourth-quarter earnings reports, Microsoft is opening down 8%, while Meta is trading up 10%. Microsoft topped expectations for earnings and revenues. However, there is some concern about its total cloud revenue. They reported cloud revenue of 26% versus expectations of 28-29%. That said, their leading cloud computing product, Azure, grew by 39%, a testament to the strong AI-driven growth. We are also hearing that investors are growing concerned that Microsoft’s elevated capital expenditures (CapEx) on data centers and AI infrastructure could weigh on profit margins.
Interestingly, three months ago, after reporting third-quarter earnings, Meta’s stock fell sharply despite beating on earnings and revenues. Like Microsoft today, there were concerns about their higher-than-expected CapEx forecast. In Wednesday’s fourth-quarter report, they stated that operating costs climbed sharply as AI infrastructure investments accelerated. The company also…
