MSFT-META Pair Trade Reassessed After Earnings - Divergence Confirmed, Timing Now Key
Earnings prints on July 29 crystallized a thesis of divergent capital allocation between Microsoft and Meta Platforms. Microsoft delivered a large upside in both EPS and revenue, and its infrastructure build is already producing returns. Meta beat revenue modestly but missed on EPS and saw free cash flow collapse to near break-even. While the funda…