**Microsoft Reports Strong Earnings, Boosting Market Indexes**
On Thursday, Microsoft (NASDAQ: MSFT) saw its stock surge by 16.4% after announcing quarterly revenue of $90.0 billion, surpassing analyst expectations of $87.6 billion. Azure cloud revenue also grew by 43%, exceeding predictions of 40%, and topped $100 billion for fiscal 2026. This performance significantly influenced market movements: the Nasdaq Composite jumped 2.6%, the S&P 500 rose 1.3%, and the Dow Jones Industrial Average gained 0.8%, adding approximately 430 points.
In stark contrast, Meta Platforms (NASDAQ: META) dropped 9.2% after missing earnings expectations by $1.04 per share and reporting a staggering 91% drop in free cash flow during the second quarter. The competition between Microsoft’s profitable AI-driven growth and Meta’s struggles highlighted investor sentiment, as the former led a market rebound while the latter raised concerns over financial sustainability in AI spending.
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