Big AI spending is fine. It just needs a timeline for profits.

Investors reacted in sharply different ways on Thursday to the latest quarterly results from Meta Platforms and Microsoft. The Facebook parent’s share price jumped 9%, mostly thanks to a very strong forecast showing revenue growth picking up speed.

The Big Tech earnings reporting season kicked off this afternoon with Meta, Microsoft and Tesla releasing quarterly results after the closing bell. Follow our live coverage here.

Microsoft shares tumble as Azure revenue growth slows, while Meta rises even after the Facebook parent ramps up its spending plans.

It turns out investors are willing to forgive huge capital spending if a company's core business is thriving.

In its fourth quarter earnings report, Meta said capital spending plans for 2026 should be in the range of $115-$135 billion, well ahead of consensus forecasts.

Both companies announced capex projections that blew past consensus expectations, but only Meta seemed to rebuff the Wall Street wariness.

Revenue from the company’s cloud computing unit failed to meet analysts’ expectations.

The Big Tech rivals are spending more than ever, but analysts are more concerned about Microsoft at the moment.