Meta and Microsoft reported rapid profit growth, but their share prices diverged in what analysts said were investors’ differing perceptions on the tech giants’ AI fortunes.
Microsoft’s shares fell after its cloud division, central to its AI ambitions, saw growth slow. The tech giant faces data-center supply constraints and is increasingly reliant on its deals with OpenAI.
By contrast, Meta’s stock price soared: it seems confident in future expansion, and “investors have dopamine receptors, too,” Semafor’s technology editor wrote: No doubt many are worried they should have jumped on the last round and don’t want to miss out. “The bottom line is that for both companies, growth is important,” The Information’s co-executive editor wrote, “but the cost of that growth is even more important.”
