Meta tanks nearly 9%, Microsoft jumps 8% as the AI trade splits Big Tech
Here's what's trending across the USA right now:
Shares of Microsoft were last 9% higher while Meta was down 9%.
Adding to this, On Wednesday, Microsoft posted fiscal fourth-quarter revenue that beat analyst estimates and reported 43% growth at its key Azure cloud business, which was also ahead of market expectations.
Meanwhile, The company shared that it now has over 30 million paid seats for Microsoft 365 Copilot, its AI work assistant, up from more than 20 million as of April, in further signs that parts of its AI investments are paying off.
Notably, "Microsoft's strong revenue performance, combined with accelerating Copilot adoption, signals that its $190 billion data‑center buildout is beginning to deliver returns," Tracy Woo, principal analyst at Forrester, shared in a note on Wednesday.
As per the latest buzz, Microsoft's stock popped even as the company reiterated its 2026 capital expenditure forecast and signaled a potential spending expansion in its 2027 fiscal year at a time when the market is jittery over the cost of AI.
In further updates, The stock rose 8% higher in extended trading on Wednesday and is down around 24% this year.
On top of that, Microsoft and Meta shares this year. It was a different story for Meta. The social media giant m issed investor expectations on earnings and its revenue guidance for the current quarter.
Meta shared it expects revenue this quarter of between $61 billion and $64 billion, or $62.5 billion at the middle of the range. Analysts were expecting guidance of $63.15 billion, according to LSEG.
Source: CNBC