Microsoft dropped 10 per cent, shedding more than US$350 billion in market value after its cloud business failed to impress, while Meta gained 10 per cent. 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 per cent in the December quarter and aiding a rosy first-quarter forecast. Meta bets on AI’s compounding effectFor 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.