Meta drops nearly 9%, Microsoft surges 9% as AI trade splits Big Tech
NEW YORK, July 30. Microsoft shares rose roughly 9% and Meta Platforms fell nearly 9% in the same session after quarterly earnings produced sharply different results for two of the largest companies in the AI trade. Microsoft reported strong growth in Azure, its cloud computing unit, and in Copilot, its AI product line. Meta missed revenue guidance forecasts, and free cash flow plunged.
Key takeaways
- Microsoft shares rose roughly 9% while Meta Platforms fell nearly 9% in the same session after quarterly earnings.
- Microsoft's gain was driven by strong growth in Azure, its cloud unit, and Copilot, its AI product line.
- Meta missed revenue guidance forecasts and its free cash flow plunged in the same quarter.
- The two share moves diverged by roughly 18 percentage points from a single afternoon of earnings disclosures.
- The results show the AI trade is not moving as one, splitting these two Big Tech companies.
NEW YORK, July 30. Microsoft shares rose roughly 9% and Meta Platforms fell nearly 9% in the same session after quarterly earnings produced sharply different results for two of the largest companies in the AI trade. Microsoft reported strong growth in Azure, its cloud computing unit, and in Copilot, its AI product line. Meta missed revenue guidance forecasts, and free cash flow plunged.
Microsoft's quarter: Azure and Copilot growth
Microsoft's earnings showed strength in Azure and Copilot, the company said. The two product lines drove a share gain of roughly 9%.
Meta's quarter: a revenue miss and falling cash flow
Meta's results fell short of revenue guidance forecasts, according to the release. Free cash flow fell sharply. Both shortfalls registered in the same quarter, and shares declined nearly 9%.
The split within Big Tech
The divergence in share moves, roughly 18 percentage points, came from a single afternoon of earnings disclosures. Microsoft's cloud and AI product lines delivered growth. Meta's revenue and cash flow did not reach the levels that guidance had implied. The AI trade, as defined by these two reports, is not moving as one.