Microsoft and Amazon rally while Meta falls. What it means for our AI theme

Beansprout Pro in brief

• Microsoft shares surged after Azure growth beat expectations, supported by strong forward bookings and steady capex plans.
• Amazon also rallied as AWS recorded its fastest growth in 18 quarters, reinforcing confidence in cloud demand.
• Meta moved in the opposite direction after weaker earnings, softer guidance and higher costs raised questions about near term returns from its AI spending.
• The broader AI and semiconductor sector rebounded, helped by stronger earnings and a more positive outlook for memory pricing.
• The key message is that the market is no longer rewarding AI capex alone. Investors increasingly want evidence that spending is translating into cloud growth, revenue and backlog.
• In this update, we compare Microsoft, Amazon and Meta, and explain what their results mean for our AI infrastructure exposure within the Beansprout model portfolio.