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Wednesday, July 29, 2026

Microsoft’s AI spending became cloud revenue. Meta’s became a cash-flow hole.

Meta’s revenue rose 28% to $60.8bn, but profit fell 14%, free cash flow collapsed 91% to $784m, and the shares dropped about 5%. It reported the same day as Microsoft and told the opposite story: unlike its rivals, Meta has no cloud business to turn its vast AI spending into revenue, and the payoff …

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