META, MSFT Making Outsized Post-Earnings Moves

Core Insights - Tech giants Meta Platforms Inc and Microsoft Corp reported strong earnings results, but their stock movements diverged sharply in the market [1] Group 1: Meta Platforms Inc (META) - META's stock rose by 7.7% to $719.96, reaching its highest level since October and on track for its largest single-day percentage gain since July [2] - The company announced better-than-expected fourth-quarter earnings and revenue, along with an increase in current-quarter sales guidance [2] - META plans to nearly double its AI spending by 2026, indicating a strong commitment to technology investment [2] Group 2: Microsoft Corp (MSFT) - MSFT's stock fell by 11.3% to $427.01, marking its lowest level since May 2025 and potentially its worst single-day percentage loss since the Covid-19 crash [3] - Despite reporting better-than-expected fiscal second-quarter results, the stock is negatively impacted by higher capital spending and slower growth in cloud computing [3] - A soft operating margin outlook is also contributing to the downward pressure on MSFT shares [3] Group 3: Options Activity - Both META and MSFT are experiencing significantly higher trading volumes in the options market [4] - The most popular options for META are the weekly 1/30 750-strike call, while for MSFT, it is the March 435 call, with new positions being opened for both [4]