Microsoft’s Azure growth and Copilot adoption drive shares higher, while Meta’s revenue forecast misses analyst estimates.
Microsoft shares rose 8% in premarket trading after reporting fiscal fourth-quarter revenue that exceeded analyst estimates. The company’s Azure cloud business grew 43%, surpassing expectations, and its AI work assistant, Microsoft 365 Copilot, now has over 30 million paid seats, up from 20 million in April. Analysts noted the $190 billion data-center buildout is starting to deliver returns.
Meta’s stock fell 8.5% after missing earnings expectations and issuing weaker-than-expected revenue guidance for the current quarter. The company forecast revenue between $61 billion and $64 billion, with a midpoint of $62.5 billion, below the $63.15 billion analysts anticipated. The guidance weighed on investor sentiment amid broader concerns over AI spending.
Microsoft’s gains contrasted with Meta’s decline, highlighting a split in investor reactions to Big Tech’s AI investments. Microsoft’s stock remains down 24% year-to-date despite the recent rally.