Microsoft and Meta are both spending heavily on AI. But investors saw two very different stories.
MICROSOFT: SPENDING WITH PROOF
- Revenue: $90B, up 18%
- Azure growth: 43%
- Azure crossed $100B for the year
- Copilot passed 30M paid seats
- Free cash flow fell 23%
- Stock jumped as much as 9%
META: THE BILL IS DUE
- Revenue: $60.8B, up 28%
- EPS missed expectations
- Free cash flow plunged 91% to $784M
- 2026 capex raised to $130B-$145B
- Reality Labs lost $4.62B
- Stock fell as much as 10%
THE BIG INVESTOR TAKEAWAY
Both companies are betting big on AI. But Microsoft is showing investors revenue from that spending today, while Meta still has to prove its massive AI investment can deliver similar returns.
PROOF BEATS PROMISE.
The AI race is no longer just about who spends the most. Investors want to see where the money is actually turning into revenue.
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