Microsoft Posts Biggest One-Day Market Value Gain in U.S. Corporate History
Silicon Valley has poured astronomical sums into artificial intelligence (AI), while Wall Street has worried those investments could go to waste, and the tension between the two has kept markets highly volatile. Then, in a single day, market value surged by nearly $500 billion. Microsoft shares jumped 16%. The company’s latest earnings report eased concerns that spending on data centers, chips and other areas would grow faster than its ability to generate cash. Microsoft’s market capitalization rose by $450 billion in a single day, the largest one-day gain ever for a U.S. company. Meta Platforms had the opposite experience. Forecasts showed that the Instagram parent’s free cash flow in the second half of this year would turn negative for the first time since its 2012 IPO, sending the stock down 8%. Meta shares fell for an 11th straight trading day, the longest losing streak on record.