Big Tech Earnings Live: Meta and Tesla Shares Surge on Strong Results; Microsoft Drops as Cloud Revenue Growth Slows

Microsoft - Microsoft’s stock decline is attributed to slowing revenue growth from its Azure cloud platform and concerns over backlog concentration, particularly its reliance on a significant deal with OpenAI [1][2] - The company’s remaining performance obligations, or backlog, is currently $625 billion, more than double from a year ago, with approximately 45% tied to OpenAI [2] - Despite these concerns, analysts believe Microsoft can monetize AI effectively due to its diverse business segments, including applications, security, and infrastructure [3] - Microsoft reported $81.3 billion in revenue for its fiscal second quarter, with adjusted earnings per share of $4.14, exceeding analyst expectations [21] - Intelligent Cloud revenue, which includes Azure, reached $32.9 billion, surpassing the consensus estimate of $32.39 billion [21] - Capital expenditures for Microsoft were $37.5 billion, higher than the expected $34.3 billion, with a significant portion allocated to short-lived assets like GPUs and CPUs [18] Meta - Meta's anticipated capital expenditures for 2026 are projected to be between $115 billion and $135 billion, significantly higher than last year's $72.22 billion and above analysts' expectations of $110 billion [13][14] - The increase in spending is primarily driven by investments in AI initiatives, particularly the Meta Superintelligence Labs [14] - Meta reported fourth-quarter earnings of $8.88 per share, with a 24% year-over-year revenue increase to a record $59.89 billion, driven by a surge in ad revenues [15] - The company expects first-quarter revenue between $53.5 billion and $56.5 billion, exceeding analyst projections [15] Tesla - Tesla's stock rose after reporting quarterly revenue of $25.71 billion, surpassing the consensus expectation of $25.12 billion, with net income at 60 cents per share [17] - The company did not provide a detailed outlook for vehicle sales, focusing instead on maximizing factory capacity utilization [12] - Tesla confirmed plans to unveil a new Optimus robot in the first quarter of 2026, with production expected to start in the same year [10]