Microsoft dropped 10%, shedding more than $350 billion in market value after its cloud business failed to impress, while Meta gained 10%. Microsoft reported revenue growth in its Azure cloud-computing business that was only slightly above expectations. In contrast, AI bolstered ad targeting at Meta, boosting revenue by 24% in the December quarter and aiding a rosy first-quarter forecast. META BETS ON AI'S COMPOUNDING EFFECT For Meta, the revenue growth underscored that its AI pivot was paying off and helping the company ⁠catch up to early leaders. Analysts said the results left some mismatch between corporate AI goals and investors' demand for payoffs.