AI Spending Puts Microsoft and Meta on the Spot

Microsoft and Meta head into earnings with investors asking whether the massive spending behind artificial intelligence can actually produce the returns needed to justify the cost.

Chuck Zodda and Paul Lane break down why hyperscaler CapEx is becoming a bigger concern for markets, how depreciation from trillions in AI infrastructure spending could pressure future profits, and why companies may need enormous new AI revenue just to break even on the buildout. They also discuss Mark Zuckerberg’s pushback against AI regulation, the risks of increasingly powerful AI agents, Ford’s outlook as buyers keep favoring trucks and SUVs, FIFA’s reported effort to attract outside investors, Nike’s struggles in China, and why DoorDash’s FAA approval for drone delivery raises new questions about technology, jobs, and public safety.