On January 29, 2026, Meta Platforms saw a 10.4% increase in stock price after reporting a 24% revenue growth for the December quarter, driven by AI-enhanced online advertising. Meta’s first-quarter revenue forecast expects sales between $53.5 billion and $56.5 billion, surpassing analyst estimates of $51.41 billion. The company plans to invest $115 billion to $135 billion in AI for 2026, nearly doubling its previous year’s capital expenditures of $72.2 billion.
In contrast, Microsoft stock fell about 10% despite better-than-expected earnings, as concerns over slowing growth emerged. Azure cloud growth reported a 39% increase, slightly below prior forecasts. The company’s implied operating margin for the fiscal third quarter is 45.1%, and analysts worry about OpenAI accounting for 45% of its remaining performance obligations. Tesla also reported a mixed quarter, with a 3.2% drop in stock price after announcing over $20 billion in AI investments.
In a competitive AI landscape, OpenAI issued an internal “code red” following strong reviews of Google’s Gemini 3, while Anthropic’s Claude Code has reached a revenue run rate above $1 billion. ETFs focused on Meta, like the Fidelity MSCI Communication Services Index ETF and Vanguard Communication Services ETF, gained about 2.8%, while those linked with Microsoft, such as the Roundhill MSFT WeeklyPay ETF, saw declines of up to 12.2%.
