Microsoft and Meta Stocks Diverge on AI Earnings
Microsoft shares surged 8.3% in premarket trading Thursday after strong Azure cloud performance, while Meta Platforms fell 9% following a disappointing revenue outlook and a 91% drop in second-quarter free cash flow. The contrasting results highlight how AI investments are splitting Big Tech, with Microsoft benefiting from its Azure AI services and Meta facing investor skepticism over its spending.
Key facts
- Microsoft stock rose 8.3% premarket Thursday.
- Meta stock fell 9% after earnings.
- Microsoft's Azure cloud performance drove the gain.
- Meta reported a 91% collapse in Q2 free cash flow.
- Meta offered a disappointing revenue outlook.
- The divergence reflects AI trade splitting Big Tech.
Entities
Institutions
- Microsoft
- Meta Platforms
- Azure
Sources
- Quartz —