Microsoft, Meta Earnings Reports Approaching, Market Patience on AI Spending Waning

According to Bloomberg, Microsoft and Meta will release their earnings reports after the US market closes on Wednesday. The market focus is not on revenue growth, but rather on the two companies' continuously rising AI capital expenditures and shrinking cash reserves. Previously, Alphabet's stock price still recorded the largest single-day drop in over a year despite announcing better-than-expected results, as it experienced negative cash flow for the first time since its listing due to a surge in capital expenditures. Analysts point out that the uncertainty surrounding returns on AI investments by large tech companies is accelerating the erosion of Wall Street's patience, and Microsoft and Meta's earnings reports may become a new round of stress tests for market sentiment.