During this earnings season, Meta Platforms saw an 8% surge in shares thanks to AI investments, while Microsoft shares dropped 11% due to struggles justifying spending and a slowdown in cloud growth. Investors debate whether companies are reaping rewards from AI spending, with Meta planning to spend up to $135 billion this year.

Meta’s revenue growth eased investor worries, with CEO Mark Zuckerberg hinting at new products and AI investments for “personal super intelligence.” Microsoft, on the other hand, faced a stock plummet as Azure cloud growth slowed to 39% and capital expenditures jumped 66% to support cloud and AI demand. The company also struggled with compute capacity constraints.

Read more at CNBC: Meta rises 8%, Microsoft sinks 11% after earnings