Lana

They're watching closely for signs of tighter financial discipline.

Massive fail on that front, Microsoft spent over $37.5 billion to expand its cloud business, much higher than analysts predicted.

And with that division growing at a slightly slowing pace, investors worried about thinner profit margins and sent the stock south initially.

Meta had plenty in common with Microsoft.

It banked more profit than expected and brought in nearly $60 billion in revenue, over $1 billion above forecast.

The firm's also spending heavily, saying it'll burn through $115 billion to $135 billion this year.

The key difference?

Meta said that even with that splurge, profit should still land higher this year than last.

It also circled an early judgment day, saying this quarter's sales will land between $53 billion and $56 billion, well above the roughly $51 billion analysts had penciled in.

Investors bought both the story and the stock, at least initially.

Last year, companies were rewarded for building models that could generate.

Now they're being judged on how well they can delegate real work to AI systems that save time, close sales, and most importantly, finally turn big budgets into profit.

Microsoft is under pressure to show Copilot can graduate from slick demos into everyday workflows, effectively acting like an automated coworker.

Meta, meanwhile, is betting on business agents inside WhatsApp and Instagram that answer questions and gently push customers toward a purchase, turning its apps into always-on storefront staff.

Before we dive into the next story, it's time for our daily check-in with Carl.

You've got questions, he's got your answers.

Carl, what have you got for us?

Thanks, Carl.

Next up.

The US dollar hit a four-year low, and that matters since the fate of your portfolio might be staked on it more than you think.