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Free cash flow is the pressure valve on any AI infrastructure build. When capital expenditure runs ahead of incremental revenue, it compresses, and the market reprices.
Meta is in that compression now, sinking 8% and extending a record losing streak, after missing revenue guidance forecasts and reporting a sharp decline in free cash flow.
Microsoft moved the other direction, jumping 15% on the strength of Azure and Copilot growth. Microsoft and the monetization evidence investors needed Azure and Copilot were the two products that moved the number.
Strong growth across both gave investors the throughput evidence they needed to continue justifying AI infrastructure spending at scale.
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