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Welcome to LazyListen. This is The Daily Rip for today. the market action with a sharp look at how artificial intelligence spending is shaping investor sentiment, starting with the latest from Microsoft and Meta.

I. infrastructure, but the market only cheered one of them. Microsoft’s shares jumped seven percent after hours, powered by revenue and earnings beats, while Meta’s stock dropped eight percent despite a revenue beat, as earnings missed expectations and spending surged.

Microsoft posted revenue of ninety billion dollars, beating estimates, with earnings per share at nearly four dollars and eighty-one cents, topping forecasts. Their cloud business, Azure, accelerated growth to forty-three percent—its fastest pace since early 2022—and crossed the one hundred billion dollar annual revenue mark. -powered Microsoft 365 Copilot also gained traction, reaching thirty million paid users, up from twenty million just three months ago.

Capital expenditures rose seventy percent to forty-one billion dollars, slightly below expectations, but investors were clearly comfortable with the spending because it was tied to accelerating demand. Meta, on the other hand, reported revenue of sixty point eight billion dollars, slightly above estimates, but earnings per share came in at six dollars and eighteen cents, missing the expected seven dollars and nineteen cents. Advertising revenue grew twenty-seven percent to nearly sixty billion dollars, yet capital expenditures nearly doubled to thirty-one billion dollars for the quarter, with the company raising its annual spending guidance to a staggering one hundred thirty billion dollars.

Free cash flow plunged ninety-one percent to just seven hundred eighty-four million dollars as massive data center investments ate into cash generation. Meta’s third-quarter sales guidance also came in below consensus, signaling a softer outlook. I.

spending when it’s paired with clear, near-term revenue growth—as with Microsoft’s cloud acceleration and paid user gains. Meta’s spending, by contrast, feels more speculative, relying on mature social platforms to bankroll costly infrastructure projects that haven’t yet translated into meaningful revenue growth. I.

investments that come with a “receipt” of accelerating demand, not just big checks. On the macro front, the Federal Reserve held interest rates steady in the three point five to three point seven five percent range, but three officials dissented, favoring an immediate hike. This signals ongoing debate within the Fed about the pace of tightening amid persistent inflation concerns.

Tomorrow’s key economic data includes the Personal Consumption Expenditures Price Index, GDP figures, and weekly jobless claims—all released at eight thirty Eastern. These reports will be closely watched for clues on inflation trends and economic momentum. -driven innovation.

I. is complex and risky, it promises to accelerate drug discovery, improve clinical outcomes, and enhance patient care efficiency. I.

ETF is one actively managed fund aiming to identify companies leading this transition, reflecting growing investor interest in this specialized niche. In earnings news beyond the tech giants, tomorrow’s pre-market slate features a broad range of companies including Ocugen and Aurinia Pharmaceuticals in biotech, Norwegian Cruise Line in travel, Mastercard in financial services, and Altria in consumer staples. After the market closes, keep an eye on Apple, Amazon, Coinbase, Roku, and Riot Platforms, among others.

These reports could set the tone for market direction heading into the end of the week. I. investments that deliver accelerating revenue and user growth, as Microsoft demonstrated, while punishing those with heavy spending but softer near-term outlooks, like Meta.

The Fed’s steady rate decision with some dissenters keeps the door open for further tightening, and tomorrow’s economic data will be critical for assessing inflation and growth. I. is emerging as a promising but complex theme, and a busy earnings calendar offers plenty of opportunities for fresh market movers.

Watch tomorrow for those economic reports and earnings releases, especially from Apple and Amazon, which could provide fresh catalysts. I. spending discipline and macro signals will likely continue to drive sentiment in the days ahead.

Thanks for listening. Catch you next time on LazyListen.