Episode summary
Earnings Roundup: Meta, Microsoft & Qualcomm | Bloomberg Surveillance
Bloomberg Surveillance
· · 22 min · Hosts: Tom Keene, Paul Sweeney, Lisa Mateo, Michael Barr, Tim Stenovec, Carol Massar · Guests: Ed Ludlow, Mandeep Singh
Summary
Microsoft’s after-hours rally came from a stronger-than-expected cloud result, with Azure growth and broader AI traction reassuring investors that spending is still translating into revenue. The host and guests said the key question is not just current growth, but how fast capex rises into the next fiscal year and whether Microsoft can keep Azure growth near that spending pace. They also pointed to 30 million paid Microsoft 365 Copilot seats and more than $100 billion in annualized Azure revenue as evidence the company is making AI products more tangible to customers.
Meta was the weaker story. The stock fell after the company gave a lighter revenue outlook and raised concerns about margin pressure, with operating margin dropping to 31% from 43% a year earlier. The guests focused on rising costs, heavy AI infrastructure spending, and the possibility that depreciation from prior capex is now weighing on results. They also highlighted Mark Zuckerberg’s comment that AI is opening new enterprise opportunities, which suggested Meta may eventually look beyond advertising.
Qualcomm also disappointed, guiding weakly for the current quarter as component shortages and higher costs hit the smartphone market. The guests said Qualcomm remains exposed to soft handset demand, especially in China and with Apple-related business, even as it tries to diversify away from phones. Arm was comparatively steadier, helped by stronger data-center exposure.
Key takeaways
- The host said Microsoft’s after-hours gain was tied to cloud growth beating expectations and investors focusing on whether capex can be matched by Azure momentum.
- The guests said Meta’s stock drop reflected a sharp operating-margin decline to 31% from 43% and a weaker outlook, not just one-time charges.
- One guest argued Meta’s AI spending is now pressuring free cash flow and could force the company to find new enterprise revenue streams beyond advertising.
- The guests said Microsoft’s 30 million paid Copilot seats and more than $100 billion in annualized Azure revenue gave investors clearer proof of AI monetization.
- The host said Qualcomm’s weak forecast showed smartphone weakness is still hitting the main processor business, especially through Apple and China exposure.
Notable quotes
“everything is in the cloud growth, better than expectations”
“AI is accelerating our core business today, powering our next generation of products and opening the door to entirely new enterprise opportunities”
“it seems worse for Qualcomm than we thought”
“the thing that I will ask Cristiano is for him to give me his latest assessment of the smartphone market for this year”
How the episode opens
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Bloomberg Audio Studios podcasts radio news. This is a breaking news update from Bloomberg. Instant reaction and analysis from our 3,000 journalists and analysts around the world. — Big tech earnings. Microsoft rallying three and a half% in the aftermarket. Uh you've got Meta under pressure. Ed Ledllo is host of Bloomberg Tech on Bloomberg television. 11:00 a.m. Wall Street time, Monday through Friday. Ed, uh, pick where you want to start.
Should we start on Microsoft? I feel like it's probably the most tangible, right? So, everything is in the cloud growth, better than expectations.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- megacap tech earnings
- meta ai spending
- microsoft cloud growth
- qualcomm smartphone components
- after-hours stock moves
Companies and tickers mentioned
- META
- MSFT
- QCOM
- Meta Platforms
- Microsoft
- Qualcomm
Watch the episode
Watch “Earnings Roundup: Meta, Microsoft & Qualcomm | Bloomberg Surveillance” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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