tech
January 29, 2026
Meta soars after proving AI spend while Microsoft struggles to please
Meta jumped, while Microsoft plunged post-earnings as investors hunt for signs that big AI investments are paying off.
TL;DR
- Meta's stock increased over 10% following strong AI investment returns and future spending plans.
- Microsoft's stock dropped 10% due to a slowdown in its cloud segment and investor concerns about AI spending.
- Investors are scrutinizing companies' returns on massive AI investments.
- Meta plans to spend between $115 billion and $135 billion on AI build-out this year.
- Microsoft's Azure cloud segment growth slowed to 39%.
- Microsoft's capital expenditures increased significantly to support cloud and AI segments.
- Microsoft faces compute capacity constraints due to high demand for AI services.
- IBM's stock rose 5% as investors gained confidence in its AI strategy and growth.
- ServiceNow shares dropped 10% amid concerns that AI could disrupt the software sector's business model.
- There are broader sector worries that AI tools might reduce demand for existing software workflows and licenses.
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