Stock Movers Meta Gains on AI Spending; Microsoft Falls on Azure Growth; Tesla Plots $20 Billion Splurge
Jan 29, 2026
Big tech earnings and AI spending take center stage. Meta surprises with a stronger revenue outlook despite rising AI costs. Microsoft sees softer Azure growth and higher expenses. Tesla plans a $20 billion factory reshuffle, cutting older models to make room for robots and new production.
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Divergent Market Reactions To Big Tech Spend
- Markets reacted differently to big tech spending based on perceived returns and guidance.
- Meta's strong revenue outlook eased concerns about its large AI CapEx while Microsoft faced scrutiny over Azure growth and rising expenses.
Azure Growth Lagged Against Rising CapEx
- Microsoft beat estimates but Azure growth disappointed relative to rising investments.
- Higher-than-expected CapEx and $37 billion invested raised questions about return on Microsoft's spending.
Meta Backs AI Spend With Ad Strength
- Meta provided a strong sales forecast and expects $55 billion this quarter, leaning on ads.
- The company plans up to $135 billion in CapEx but investors see core ad strength supporting its AI spending spree.