Earnings deluge, AI capex shock, gold surge

And joining me now, tech editor Dan Howley and senior autos reporter Parasubramanian.

Dan, I want to start with you, because we do have, like, One of these things is not like the other sort of situation here this morning.

Meta is spending a lot.

Microsoft is spending a lot.

But investors are reacting a lot more positively to Meta's numbers.

Yeah, especially right after the announcement.

I mean, we saw Microsoft drop as much as 7% right away while Meta kind of started picking up steam.

I think, you know, as the earnings calling on, Microsoft's losses kind of paired the losses there.

But I think a lot of it had to do with the spending and cloud growth.

I think the street was looking for more cloud growth.

They slowed slightly quarter over quarter.

order.

Year over year, though, they continue to improve.

They saw commercial bookings increase 200 plus percent.

But, you know, it's the spending here, I think, is the big issue.

And, you know, Microsoft is capacity constrained.

So, you know, it's either you spend and you don't get to reap the rewards of that spend or you don't and you perpetually have a backlog.

Speaking which backlog for remaining performance obligations crossed the $600 billion mark.

So those are basically contracts that Microsoft has signed.

They haven't quite delivered on yet, and so they haven't seen the revenue for that, but that's all forward-looking.

45% of that is coming from open AI.

The remaining 55 comes from the likes of Anthropic as well as other customers.

But they spoke on the phone about how they continue this buildout of their AI data centers, how they're seeing it kind of percolate across their business.

And I think, you know, the big kind of takeaway here is that it's kind of what have you done for me lately with Microsoft, where it's, you know, they beat on the top and bottom line, they beat on all the key metrics, but maybe they didn't beat enough for the street.

Yeah, and contrast that with Meta, which is so interesting because Meta is not only a contrast with Microsoft, Meta is a contrast with the last time it reported when it talked about big spending plans and the stock dropped.