Microsoft’s cloud outlook knocks shares, Meta rises on AI payoff signs

Investors punished Microsoft with a 6 per cent share drop on Thursday as hefty AI bets failed to drive a big increase in its cloud revenue, while Meta rose 4 per cent after CEO Mark Zuckerberg assured Wall Street about growth with promises of a “really big year”.

The chief executives of both the companies defended their heavy investments on artificial intelligence on Wednesday, days after Chinese upstart DeepSeek unveiled a breakthrough in cheap AI that shook the technology industry.