MS and Meta receive mixed assessments on AI investment monetization

Microsoft topped market expectations in Q2, helped by strong cloud revenue and rising usage of AI services like Azure and MS365 Copilot.

Meta drew a mixed-to-negative reaction after its revenue guidance came in below forecasts and free cash flow fell sharply as AI spending increased.

The split highlights how investors are judging whether Big Tech’s massive AI investments are translating into real sales and cash generation.

The outcome could shape future AI infrastructure spending and pressure or support each company’s stock differently.