NEW YORK — Meta Platforms Inc. shares fell 1.3 percent, closing at $585.61. Microsoft Corp. dropped 0.7 percent to $390.54. The gap in relative performance points to a real split in how the market is valuing Big Tech's competing AI strategies. The broader market also moved lower, with the Nasdaq down 1.7 percent to 24,443 and the S&P 500 falling 1.5 percent to 7,316.
Investors continue to scrutinize Meta's AI spending and its metaverse division. The company is committing heavy capital to AI research and infrastructure, including custom silicon and large language models. Analysts question the near-term returns on those bets, particularly against competitors with more direct monetization paths. Meta's capital expenditures, projected at $30 billion to $37 billion for the year, weigh on near-term profitability even as the company builds out foundational AI capabilities.
Microsoft offers a clearer monetization path. Its partnership with OpenAI and deep integration of AI across Azure and enterprise software generate tangible revenue today. Azure continues to report strong growth, driven by demand for cloud-based AI and Copilot subscriptions. Microsoft's relative resilience—falling less than Meta—reflects investor confidence in its ability to deliver AI-powered products at scale.
Alphabet Inc. was the standout, rising 0.9 percent to $336.71, a sign that investors are selectively rewarding established AI players with diversified revenue over companies carrying longer development cycles and higher capital intensity.
Upcoming quarterly earnings from Meta and Microsoft will be the next real test. Watch for specific figures on AI-driven revenue, capital expenditure guidance and profitability margins—those numbers will determine whether today's divergence holds or reverses.
