By Molly Liebergall
Publication Date: 2026-01-30 05:01:00
Two AI giants diverged in a red Nasdaq: This week, Meta and Microsoft reported broadly similar quarterly earnings that elicited opposite investor reactions, with shares of Meta climbing 10% yesterday and Microsoft plunging 10%—a nearly six-year record drop that erased $350+ billion in value.
Similarities: In their most recent quarters, both companies beat revenue expectations, showed signs that they’re beginning to monetize AI, and posted higher-than-anticipated capital expenditures driven by spending on data centers and other AI infrastructure.
Differences: Meta’s AI capital expenditure—which it plans to double this year—appeared more justifiable than Microsoft’s:
- Meta enjoyed 24% year over year revenue growth, driven by its rock-solid ad business, while Microsoft recorded 17% growth.
- Microsoft’s Azure business, part of its revenue-driving cloud services, dipped slightly quarter to quarter, from 40% growth to 39% growth, possibly spooking investors.
- Crucially, Microsoft…
