Microsoft stock jumped more than 15% after the United States software major announced its earnings today, while in contrast technology giant Meta saw its shares slump 9% on the back of its results, according to an AFP report.
AP in a report noted that Microsoft’s shares soared 15.2%, beating expectations from Wall Street analysts on the strength of its Azure cloud services business. CEO Satya Nadella said it reflects how customers are using Microsoft to move into artificial intelligence (AI).
Meta’s shares on the other hand slipped after the Facebook, WhatsApp and Instagram parent missed profit targets while logging $42 billion in costs and expenses — up 55% year-on-year (YoY), the AP report added.
Some analysts pointed to how it raised the lower end of its forecasted range for spending on investments this year. Meta’s investors are concerned over profits from the massive investment in AI, it further said.
US stocks get boost from tech companies
According to a Bloomberg report, the US stock market was boosted by tech stocks and chipmakers as buyers bought the dip. It added that the Nasdaq 100 climbed 2.1% a day after entering a technical correction.
While Microsoft’s cloud unit registered the fastest clip in four years, Meta put a damper on the overall gains, it added, noting that watchers will now keenly await results from Apple and Amazon for indication on how the Magnificent Seven are set to perform. It added that the mega caps have dragged the broader market this year due to increased concerns over multi-million-dollar AI spends.
“Despite near-term volatility, the outlook for US equities remains constructive, supported by strong corporate earnings, ongoing AI adoption, a resilient economy, and favorable financial conditions,” said Sameer Samana at Wells Fargo Investment Institute.
(With inputs from Agencies)
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