Big Tech multiples stuck in AI value chain clog

Microsoft on July 29 said its revenue at the company's Azure cloud-computing business rose 43% in its fiscal fourth quarter, compared with analysts' consensus estimate of 40%, according to Visible Alpha.

Microsoft reported contracted backlog of $678 billion in its cloud business at the end of the quarter, up from $627 billion in the prior quarter. The company's investment in property and equipment more than doubled from the same quarter a year ago, to $35.8 billion.

Meta Platforms on July 29 reported free cash flow of $784 million in the second quarter, down from $8.55 billion reported a year earlier. The Facebook parent also expects 2026 capital expenditure to be between $130 billion and $145 billion, compared with its prior forecast of $125 billion to $145 billion.

Meta's revenue for the quarter was $60.8 billion, an increase of 28% from the same period a year ago.