After July earnings, Microsoft stock jumped 15% while Meta sank 8%, continuing a record losing streak, CNBC reported on July 30 under the headline that the AI trade splits. Microsoft had reported Azure growth of 43% and more than 30 million paid Copilot seats; Meta was punished despite strong earnings.
The divergence followed Alphabet raising its capex forecast in late July, which led shares of Amazon, Meta and Microsoft to fall before Microsoft's results. Investors are separating companies that show AI revenue growth from those whose spending is running ahead of visible returns.
Source: CNBC