Meta tanks nearly 9%, Microsoft jumps 9% as the AI trade splits Big Tech

Microsoft's stock rose 9% after reporting strong earnings, including 43% growth in Azure (its cloud computing service) and over 30 million paid users of Microsoft 365 Copilot (an AI assistant for work), suggesting its large AI investments are beginning to pay off. Meta's stock fell 9% after missing earnings expectations and reporting a 91% drop in free cash flow (the money left after paying expenses) due to heavy spending on AI, though CEO Mark Zuckerberg mentioned the company may lease excess computing power to others as a potential new revenue source.