Microsoft earnings and revenue beat fiscal Q1 views, as its Azure cloud-computing revenue growth came in at 33%, above expectations. The Dow tech titan guided slightly below views for fiscal Q2 revenue overall and for Azure. Microsoft said it plans capital spending of $80 billion in the current fiscal 2025, which started in July. That's up from $49 billion in fiscal 2024. That could weigh on Microsoft earnings, but is good news for AI hardware plays.

Microsoft stock fell more than 3% in extended trade. Shares edged up 0.1% to 433.53 in Wednesday's regular session, in Google's cloud-led earnings beat. MSFT stock has been moving off its 21-day, 50-day and 200-day lines. The traditional consolidation buy point is 468.35, with 441.85 offering an early entry.

But Microsoft has been a laggard for much of 2024.

Meta earnings easily beat while revenue slightly topped. Daily active users came in slightly below views. The Facebook and Instagram parent guided Q4 revenue slightly higher at the midpoint. Meta guided full-year expenses slightly lower but guided up a fraction on capital spending and forecast "significant capital expenditures growth in 2025."

Meta stock fell modestly before Thursday's open. Shares dipped 0.25% to 591.80 on Wednesday, just below the top of a short consolidation.

Microsoft and Meta earnings and guidance are key for Nvidia (NVDA) and other AI hardware plays.

Nvidia stock lost a fraction overnight. Shares fell 1.4% to 139.34 on Wednesday, just below a 140.76 buy point, following weak AMD sales guidance.

Arista Networks (ANET), which boasts Microsoft and Meta as major customers, was down slightly before the open. Shares fell 1.4% on Wednesday, holding the 21-day line.