Shares in Meta Platforms Inc. and Microsoft Corp fell in after-hours trading despite reporting strong Q3 earnings on October 30. Meta's revenues increased by 19% year-on-year to $40.59 billion, surpassing Wall Street's expectations, with an EPS of $6.03 exceeding estimates of $5.19. Microsoft also posted a 16% revenue growth to $65.59 billion, exceeding estimates, and an EPS of $3.30, above $3.08. Both companies highlighted significant AI investments, expecting continued expenditures with little immediate return. Meta's CEO Mark Zuckerberg acknowledged the need for ongoing infrastructure investment, while Microsoft reported a 33% growth in its AI-powered Azure business. Traders reacted negatively to both companies' cautious outlooks, leading to after-hours share drops of 3.18% for Meta and 3.71% for Microsoft. Meta's overall user growth was also below predictions, prompting further concerns about its future performance.

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