Big AI spending is fine. It just needs a timeline for profits.

Investors reacted in sharply different ways on Thursday to the latest quarterly results from Meta Platforms and Microsoft. The Facebook parent’s share price jumped 9%, mostly thanks to a very strong forecast showing revenue growth picking up speed.

The Big Tech rivals are spending more than ever, but analysts are more concerned about Microsoft at the moment.

The Big Tech earnings reporting season kicked off this afternoon with Meta, Microsoft and Tesla releasing quarterly results after the closing bell. Follow our live coverage here.

Microsoft shares ended Wednesday's extended session down 6.1%, with investors seemingly unsatisfied about how artificial-intelligence revenue is shaking out in the face of heavy AI spending. Wall Street took more kindly to Meta Platforms' report,

It turns out investors are willing to forgive huge capital spending if a company's core business is thriving.

On Jan. 29, 2026, a rare post-earnings tumble in Microsoft rattled tech stocks even as the Dow hovered near records.

Microsoft shares tumble as Azure revenue growth slows, while Meta rises even after the Facebook parent ramps up its spending plans.

Shares dropped the most since March 2020 on Thursday, with investors fleeing the stock amid slower cloud growth and big spending on AI.