Tech Giants’ AI Spending Divides Investors as Meta Soars, Microsoft Lags
Meta Platforms' stock surged after demonstrating tangible returns from its aggressive AI investments, particularly in advertising revenue growth. The social media giant reported a 50% increase in Q4 2025 capital expenditures, with projections suggesting a 90% rise this year. Meanwhile, Microsoft faced investor skepticism as its AI-driven growth indicators fell short of expectations.
The divergence highlights a shifting market sentiment: unlimited AI budgets no longer impress without corresponding revenue growth. Meta's 24% ad revenue increase—fueled by AI-optimized impressions and pricing—contrasts sharply with Microsoft's underwhelming performance. Tech companies collectively risk crossing an invisible threshold where AI expenditures must prove their worth in earnings statements.
