Microsoft Struggles with AI Monetization While Meta Rides the AI Wave to Success
Microsoft's recent financial outlook has raised concerns among investors, leading to a 6% drop in its share price. Despite substantial investments in artificial intelligence (AI) and the Azure cloud platform, the anticipated surge in cloud revenue has not materialized. Azure's growth has decelerated for two consecutive quarters, with projections indicating a 19.7% increase in the second quarter, down from 16% in the first quarter. This slowdown has intensified investor apprehension regarding the monetization of AI investments and the management of associated costs.
In contrast, Meta Platforms has experienced a significant uptick in its stock value, rising by 76% over the past year. This growth is attributed to effective cost management and the successful integration of AI technologi...