Shares of Microsoft (MSFT.O) and Meta (META.O) opened lower on Thursday morning in Frankfurt, despite both companies reporting earnings that outperformed analysts’ expectations. Microsoft’s forecast for its Azure cloud services pointed to a deceleration in growth, which has raised red flags for investors reliant on the cloud segment’s robust performance. On the other hand, Meta disclosed plans for a “significant acceleration” in investments related to artificial intelligence infrastructure, signaling a notable increase in operational expenses anticipated for the next fiscal year.
As of 0711 GMT, Microsoft shares were down 5.1%, while Meta saw a decline of 2.6%. This disappointing performance has also influenced Nasdaq futures, which experienced a decline of more than 1%. Market observers are keen to see how these companies will address the challenges of rising costs and potentially slower growth trajectories in a competitive tech landscape.