Microsoft and Meta Platforms Earnings Reactions
Following their quarterly results, Microsoft (NASDAQ: MSFT) saw its stock drop approximately 10%, while Meta Platforms (NASDAQ: META) experienced a 10% rise. Microsoft’s Azure cloud computing segment reported an impressive 39% growth in Q2, surpassing the guidance of 37%. Despite this strong performance, Microsoft’s stock still declined.
Meta’s Q3 2025 earnings report drew concerns over its ambitious capital expenditure plans for 2026, projected to be between $115 billion and $135 billion, significantly up from $72.2 billion in 2025. However, despite the increased spending, Meta forecasts an increase in operating income for 2026, alleviating some investor fears.
Both companies showed strong performance, with Meta’s revenue rising 22% in Q4 compared to Microsoft’s 17%. Currently, Microsoft’s stock trades at 26 times forward earnings, compared to Meta’s 24 times, making Meta the more attractive option for growth-oriented investors.
