Home›US Markets›Equities›Meta drops nearly 9% as Microsoft gains on AI momentum

Meta drops nearly 9% as Microsoft gains on AI momentum

Microsoft posted strong Azure and Copilot growth, while Meta missed revenue guidance and saw free cash flow fall sharply.

Reported · Written up by our desk · Equities

Meta shares fell nearly 9% after the company missed revenue guidance, a move that underscored investor concerns about its near-term performance.

At the same time, Microsoft rose about 8%, as the market responded positively to strong growth tied to Azure and Copilot, according to CNBC Markets.

The result was a split in the AI trade within Big Tech, with investors rewarding Microsoft’s accelerating AI-related businesses while pulling back from Meta after its guidance miss and free cash flow plunge.

CNBC World and CNBC Earnings both highlighted the contrast between the two companies, linking Meta’s decline to weaker financial targets and cash flow, while tying Microsoft’s advance to continued momentum in cloud and AI products.

More like this

Sources