In its most recent quarter, Microsoft Cloud's revenue was $59.3 billion, up 27% year over year,

Economist Steve Hanke argued that artificial intelligence (AI) is unlikely to replace workers on a massive scale because deploying it remains too expensive. Hanke, a professor of applied economics at Johns Hopkins University and a former member of President Ronald...

Microsoft has posted eight straight quarters of revenue growth, while its smaller peer swung between sharp gains and declines.

On the latest episode of the AI Investor Podcast, 24/7 Wall St. Analyst Austin Smith opens with a puzzle: two companies are being treated in opposite ways for the same underlying behavior. Microsoft is up roughly 16% after Azure growth accelerated from 38% to 43%, with guidance pointing to 45–46%, vindicating a capex program the market had criticized. Meta, meanwhile, is down about 10% at roughly 20x earnings despite 28% top-line growth — and is being punished for the same infrastructure spending, even after Zuckerberg argued that Meta rents out compute at a markup over its cost. Co-host Eric Bleeker's answer is that both moves are likely overreactions, and that the real variable is what each company said versus what Wall Street wanted to hear. Microsoft delivered on message: Azure at a $124 billion run rate, 90% of cloud demand coming from outside the frontier labs, and no capex increase. He frames Microsoft's position as a prisoner's dilemma, since compute routed to Azure is compute unavailable for its own AI products, and argues Microsoft CEO Satya Nadella relented under pressure from prior quarters. He compares the market's discomfort with capex growth to Apple's mid-decade smartphone choppiness versus Google's steadier trajectory. Meta hit every wrong note: an EPS miss on one-time costs, decelerating guidance, Zuckerberg walking back the cloud-capacity revenue opportunity, and incremental compute directed toward Meta Superintelligence rather than the core ad business. Eric estimates the justified moves were only a few percent in either direction, with the rest attributable to PR and positioning. He credits Microsoft's software exposure as valuable diversification, but concludes the share-price gap doesn't reflect any real difference in business trajectory.

Arista Networks forecast third-quarter revenue above Wall Street ‌estimates on Tuesday, betting on strong ‌demand for its networking gear as companies ​expand their AI infrastructure. The company has been expanding beyond its core cloud customer base into enterprise campus and branch ‌networking to ⁠diversify its revenue. Here are some details: • Shares were up 3% ⁠after the bell.