“Meta sinks on surprise tax hit, while Alphabet rallies on AI-fueled cloud strength. Microsoft beats, but investors want more. Here’s what’s priced in.”, — write: www.fxempire.com
Still, shares slipped slightly post-earnings. One reason: a $3.1 billion hit tied to its OpenAI investment knocked net income. Another: traders may have already priced in the upside. Microsoft stock is up 28% YTD and hit a record high the day before the release.
Azure and broader cloud momentum remain strong, and the company’s Productivity segment — including Office and LinkedIn — also beat. Microsoft reiterated that CapEx will remain elevated into 2026, but the pace of growth will slow. That’s a yellow flag for some, especially with AI spending ramping up globally.
What’s priced in — and what’s not Traders came into Big Tech earnings looking for clean growth, strong AI signals, and disciplined spending. Alphabet delivered and got the reward. Microsoft hit the numbers but didn’t offer fresh upside. Meta? Great income, but the tax surprise and rising costs spooked the tape.
The takeaway: strong numbers aren’t enough anymore — it’s all about how clean the story is. Investors want to see AI monetization, not just ambition. Next up, Apple and Amazon — and the bar just got higher.