(Reuters) -Investors punished Microsoft with a 6% share drop on Thursday as hefty AI bets failed to drive a big increase in its cloud revenue, while Meta rose 4% after CEO Mark Zuckerberg assured Wall Street about growth with promises of a "really big year".
Microsoft shares dropped 5 per cent, while Meta was up 2 per cent after their October-December Q1 results, both companies posted profits, according to AP reports.
Stephen Miller told Zuckerberg that the billionaire mogul had “an opportunity to help reform America, but it would be on Trump’s terms.”
Jeff Bezos, Mark Zuckerberg, Elon Musk, and other tech leaders are providing Trump with a warmer welcome to the White House than eight years ago.
Mark Zuckerberg said this year will be a "defining" year for AI, announcing plans to spend over $60-$65 billion in capital expenditures.
The tech giants are keeping capital spending plans in line as DeepSeek raises questions about future computing needs.
DeepSeek will not derail Microsoft and Meta spending a combined $US145bn ($232.3bn) on artificial intelligence this year, with Mark Zuckerberg steaming ahead with plans to build a data centre almost the size of Manhattan.
Following $500 billion Project Stargate launch, Meta is also dolling out the dollars Meta's $65 billion is lower than Microsoft's $80 billion commitment AWS is set to spend more than $75 billion while Google has yet to say how much it will spend If you have a few hundred billion dollars burning a hole in your pocket,
Meta Platforms beat Wall Street expectations for fourth-quarter revenue on Wednesday but predicted sales in the current first quarter may not meet forecasts, sending mixed signals about how its bets on pricey artificial intelligence-powered tools are paying off.