Jul 29, 2026 · 6 min

Meta and Microsoft earnings preview puts AI spending in focus

Meta Mixed, Microsoft Drops, Seagate Rises on Strong Results

The upcoming financial results will signal whether the massive market premium placed on artificial intelligence infrastructure is justified by actual cloud revenue.

3 key takeaways

1Investors are closely watching Meta to see if its substantial AI capital expenditures are translating into tangible business growth.
2Microsoft faces pressure to demonstrate continued high revenue growth within its Azure cloud computing division.
3Regulatory scrutiny in the United Kingdom is challenging Microsoft over its Copilot AI pricing structures.

Don't miss

Kristine Aquino breaks down the specific metrics investors are watching to evaluate whether Meta's massive AI infrastructure investments are yielding efficient returns.

The brief

Tech giants Meta and Microsoft are under intense scrutiny as Wall Street prepares for their latest quarterly earnings reports. The primary focus remains on whether massive investments in artificial intelligence are translating into sustainable cloud revenue growth.

Bloomberg Managing Editor Kristine Aquino highlights that Meta faces high expectations regarding its AI spending. Investors want to see if the social media giant can justify its capital expenditures by driving efficiency and advertising performance.

Meanwhile, Microsoft is navigating regulatory pressure in the UK over its Copilot AI pricing structure. The company is also tasked with demonstrating robust performance in its Azure cloud unit to maintain investor confidence in its AI leadership.

What was said on this episode

8 statements · 5 positive · 1 negative · 2 neutral

Kristine Aquinoon Meta cloud businessPositive1:19
Meta’s cloud business could offset its aggressive artificial-intelligence spending.
“It could help offset their aggressive spending on artificial intelligence.”
Listen at 1:19
Kristine Aquinoon Meta capital expenditureNeutral1:30
Meta guided for capital expenditure to reach as much as $145 billion.
“they guided for Capex to increase to as much as $145 billion during their last earnings report.”
Listen at 1:30
Kristine Aquinoon Microsoft revenuePositive2:17
Analysts expect Microsoft revenue to increase 15% year over year.
“Analysts are expecting a 15% increase from a year earlier.”
Listen at 2:17
Kristine Aquinoon AzurePositive2:27
Microsoft Azure sales are forecast to increase to about 40%.
“that's forecast to increase in terms of sales to about 40%.”
Listen at 2:27
Kristine Aquinoon Microsoft capital expenditureNeutral2:38
Microsoft says it will spend about $190 billion in capital expenditure this year.
“Microsoft saying that it will spend about $190 billion this year.”
Listen at 2:38
Kristine Aquinoon Alphabet capital expenditure increaseNegative2:54
Alphabet was heavily punished by the market after raising its capital-expenditure figure.
“It was punished very much in the market in the reaction the following day.”
Listen at 2:54
Kristine Aquinoon Seagate sharesPositive3:15
Seagate shares are rising strongly after opening gains.
“So really roaring from its opening gains.”
Listen at 3:15
Kristine Aquinoon Seagate first-quarter revenue forecastPositive3:35
Seagate’s first-quarter revenue forecast is better than expected.
“their first quarter forecast for revenue also looking more rosy than expected.”
Listen at 3:35

Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.

Featuring

KAKristine Aquino

Mentioned

Books & mentions

Bloomberg: Business News Daily

Stay updated on daily financial markets and tech sector earnings reports

Listen to the full episode and explore every guest, topic, and moment on PodLume.

Listen to the full episode Or get the iOS app