Meta shares drop 8% after earnings, while Microsoft and Amazon rise

KuCoinFlash

Release Time: 08/02/2026 08:34:24

Summary

Meta's shares fell 8% after earnings, weighed down by weak revenue guidance and a shift in the Fear & Greed Index toward caution. Free cash flow hit a multi-year low as AI-related costs rose. Meanwhile, Microsoft surged 16% on strong cloud growth and disciplined spending, while Amazon climbed 15% due to improved cloud revenue. Analysts emphasize that fiscal discipline is now critical, with altcoins also showing sensitivity to macro sentiment.

The market's reaction to the large tech earnings this quarter has laid bare skepticism toward AI. Post-earnings stock movements among tech giants have diverged: after issuing disappointing quarterly revenue guidance and recording its lowest free cash flow in years, Meta's stock plunged as much as 8% in after-hours trading, signaling that AI investments have triggered a sharp rise in expenses. In contrast, Microsoft's stock closed up nearly 16% after earnings, adding $450 billion in market value in a single day—the largest single-day gain for any individual stock. The catalyst: the fastest cloud business growth in four years, along with the company’s indication that it would cap new capital expenditures this year. Amazon’s stock also rose 15% after earnings, as its cloud revenue came in stronger than expected, posting the highest growth rate in four years and easing market concerns over the returns on massive AI spending. Bob Long, founder and chief options analyst at Explosive Options, said investors will eventually grow weary of relentless spending by mega-caps, so it’s no surprise that a company seen restraining spending is being rewarded. Stocks tied to the global AI supply chain, as well as those supporting or adopting AI technologies, also appear to be regaining favor. (Jinshi) (Source: BlockBeats)

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