Microsoft, Meta Stocks Move on Cloud Outlook, AI Spending Scrutiny
LONDON/MILAN - Microsoft (MSFT) shares declined in Europe on Thursday following a pessimistic forecast for its cloud business, while Facebook parent Meta (META) shares climbed after exceeding expectations. Investors closely examined the companies' investments in artificial intelligence (AI).
On the Frankfurt market, Microsoft shares dropped 4.5%, mirroring a similar decline in after-hours trading on Wednesday and a 1.1% loss in the regular session. In Germany, Meta shares surged 2.5% at the open, building on a 2.1% increase after the closing bell and a 0.3% gain in the regular session.
Following a recent announcement by Chinese start-up DeepSeek regarding a breakthrough in cost-effective AI computing, which has sent ripples through the US technology industry, Microsoft and Meta executives have defended their substantial AI spending, citing its importance in maintaining competitiveness in the evolving field.