Tech giants Meta and Microsoft are taking heavy hits in 2026, with Meta down nearly 10% and Microsoft plummeting over 20%—despite both being AI leaders. Meta’s AI spending raises red flags, echoing past metaverse failures, while Microsoft’s AI revenue is soaring 120% and cloud is booming. The market’s skepticism toward Meta’s AI bets may shift if they launch a rumored cloud business, while Microsoft’s strong execution suggests a rebound is inevitable unless they stumble next quarter.
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