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Microsoft shares rally after earnings, Meta drops on AI return worries

Microsoft climbed after results tied to Azure strength, while Meta slid after missing profit targets and reporting AI-related costs and expenses rising sharply year over year.

Reported · Written up by our desk · Equities

Microsoft shares rose more than 15% after the company reported earnings, with the move driven by strength in its Azure cloud services business, according to LiveMint Markets. Meta shares, meanwhile, fell about 9% after results from the parent of Facebook, WhatsApp and Instagram, as the company missed profit targets and logged $42 billion in costs and expenses, up 55% year over year, according to LiveMint Markets citing reporting by AP. Analysts also pointed to Meta raising the lower end of its forecasted range for spending on AI investments, while investors remained focused on whether those bets will translate into profits.

LiveMint Markets added that the broader US stock market was supported by gains in tech and chipmakers as investors bought the dip. The Nasdaq 100 climbed 2.1% after entering a technical correction, while the S&P 500 rose 0.9% and the Dow Jones Industrial Average gained 0.6% as of 9:31 am New York time.

The outlet also noted that some watchers will now look to upcoming results from Apple and Amazon for signals on how the Magnificent Seven may perform. LiveMint Markets also cited concerns in the market about big tech AI capex, saying US companies are eyeing as much as $725 billion in AI spending this year for infrastructure such as data centers.

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