US EditionBig Tech Results Show Investor Demand for Payoffs From Heavy AI Spending
Meta plans $115 billion to $135 billion capex in 2026 backed by ad revenue while Microsoft faces investor concern over AI spending ROI and OpenAI reliance.
- On Wednesday, Meta Platforms, Inc. and Microsoft Corp. reported quarterly earnings and unveiled capital spending above expectations, then held after-the-bell earnings calls.
- Fueled by AI demand, both firms are boosting capex to build chips, data centers and model development capacity to accelerate AI work, Meta Platforms, Inc. said Susan Li.
- Microsoft Corp. reported $37.5 billion in capital spending for the quarter, $3 billion above forecasts and up 66% year-over-year, while analysts warned costly GPU investments and slower Azure growth raised ROI concerns.
- After-Hours trading showed Meta Platforms, Inc.'s shares jumped as high as 9%, while Microsoft Corp.'s stock sank more than 5% amid investor concern.
- Longer term, Microsoft Corp. holds a $135 billion stake in OpenAI and faces concentration risk with 45% of remaining obligations, amid Oracle Corp.'s struggle to finance a $500 billion data-center initiative.
12 Articles
12 Articles
Meta and AI: Stock Market Reactions Explained
Jan 29 – Big Tech earnings so far this week have sent a clear warning: investors are willing to overlook soaring spending on artificial intelligence if it fuels strong growth, but are quick to punish companies that fall short. The contrast was clear in Thursday’s stock market reaction to earnings from Microsoft and Meta, highlighting how dramatically the stakes have changed since the launch of ChatGPT started the AI boom more than three years ag…
Big Tech results show investor demand for payoffs from heavy AI spending
Big Tech earnings so far this week have sent a clear warning: investors are willing to overlook soaring spending on artificial intelligence if it fuels strong growth, but are quick to punish companies that fall short.
Meta, Microsoft Confront AI Spending Concerns Head-On
Yesterday was a tale of two hyperscalers. Both Meta and Microsoft held after-the-bell earnings calls (for Meta’s fourth quarter and Microsoft’s second). Both have faced recent shareholder skepticism about the scale of investment in AI-powered data centers and their seemingly far-off returns. Both companies announced capex projections that blew past consensus expectations. And yet only one firm, Meta, seemed to overcome Wall Street’s wariness. D…
Business Insider
DNyuzMeta and Microsoft both blew their data center budgets last quarter. Wall Street is only mad at one of them.
illustration by Cheng Xin/Getty ImagesMeta and Microsoft reported quarterly earnings on Wednesday.Capex for both companies was higher than Wall Street expected.Meta's stock soared in after-hours trading. Microsoft's plunged.Wall Street had very different reactions to two of Big Tech's biggest spenders after quarterly earnings reports came out on Wednesday.Both Meta and Microsoft reported higher-than-expected capex. While both companies beat reve…
For Tesla, the net profit is down from 61% to 840 million dollars. Meta does better than expected and Microsoft exceeds expectations. ...
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