Microsoft's AI Bet Pays Off as Meta Disappoints Investors

In late July 2026, Microsoft reported record profits driven by its artificial intelligence investments, and its stock surged, helping lift broader markets. Meta, run by Mark Zuckerberg, posted results that disappointed investors, who are worried about the company's high spending on AI. The contrast between the two tech giants was stark: Microsoft's AI spending was seen as paying off, while Meta's raised concerns.