Meta and Microsoft Report Surging Capex

Meta and Microsoft reported quarterly earnings on Wednesday, with both posting higher-than-expected capital expenditures driven by AI data-center builds. Meta logged $22.1 billion in Q4 capex and $72.2 billion for 2025 and projects $115 billion to $135 billion for 2026; Microsoft reported $37.5 billion in Q4 capex and $81.3 billion in revenue, and investors reacted very differently to the spending.