Meta Jumps 8% on AI-Driven Ad Growth; Microsoft Slumps 11% as Cloud Cools

Meta Platforms (META) surged 8% on January 29, 2026, after reporting 24% revenue growth fueled by AI-enhanced ad targeting, while Microsoft (MSFT) plunged 11% as Azure growth slowed to 39% and capital spending hit $37.5B, signaling investor impatience for AI returns. Meta raised its 2026 AI capex forecast to $115B–$135B and projected Q1 revenue of ~$55B (+30% YoY), validating its ad-centric monetization model. CEO Zuckerberg reaffirmed commitment to “personal superintelligence,” with markets now rewarding tangible ROI over spend volume. Microsoft’s CFO Amy Hood admitted GPU shortages constrain Azure’s potential—growth could exceed 40% with full capacity. But dual pressure from internal AI R&D and external cloud demand is stretching resources, delaying payback and spooking investors focused on near-term profitability.