Meta and Microsoft are making big moves in opposite directions after earnings

Core Viewpoint - The earnings season highlights contrasting performances of major companies in the AI sector, with Meta Platforms benefiting from AI investments while Microsoft faces challenges in justifying its spending [1]. Group 1: Meta Platforms - Meta Platforms' shares surged by 8% following strong guidance and plans to invest between $115 billion and $135 billion in AI this year, nearly doubling its spending from 2025 [2]. - The company reported a 24% year-over-year revenue growth, primarily driven by online advertising, alleviating previous investor concerns regarding its ambitious spending [3]. - CEO Mark Zuckerberg indicated that the investments would support the development of new products and the mission of "building personal super intelligence" [3]. Group 2: Microsoft - Microsoft shares declined as the company struggled to justify its recent spending plans to investors and reported a slowdown in its cloud segment [1].