On the January 29, 2026 episode of “Bloomberg Businessweek Daily,” stocks fell sharply as Microsoft’s shares plunged on slowing cloud growth and heavy AI spending, while Meta surged on strong earnings and Tesla and Bitcoin also declined. The show also covered Apple’s upcoming earnings, the impact of AI investments across tech giants, and political developments related to immigration enforcement and shifting leadership ahead of the midterm elections.
On the January 29, 2026 episode of “Bloomberg Businessweek Daily,” hosts Carol Massar and Tim Stenovec discussed a turbulent day in the financial markets, with stocks broadly lower. The S&P 500 was down 0.7%, the Nasdaq fell 1.4%, and the Dow dropped 0.3%. The main driver was Microsoft, whose shares plunged 12%—their biggest drop since 2020—after the company reported slowing cloud growth and announced further heavy spending on artificial intelligence (AI). In contrast, Meta Platforms surged over 10% on strong earnings, while Tesla and Bitcoin also saw declines. Gold and oil prices were volatile, with gold briefly topping $5,500 an ounce amid geopolitical tensions.
A key segment focused on the diverging fortunes of Microsoft and Meta. Angelo Zino, Senior VP and Equity Analyst at CFRA Research, explained that while Meta is growing faster, Microsoft remains a compelling buy after its sharp drop, trading at a relatively attractive valuation. He noted that Microsoft’s Azure cloud business continues to perform well, but investors are concerned about the company’s concentration risk with OpenAI, especially as reports surfaced of Microsoft and Nvidia discussing a $60 billion investment in the AI startup. Zino argued that Microsoft’s long-term prospects remain strong due to its robust business model and cash flow.
The conversation also touched on Tesla, which is increasingly viewed by investors as a technology company rather than just an automaker, especially given its massive planned investments in AI and Elon Musk’s X.AI initiative. Zino highlighted that Musk is one of the biggest spenders on GPU servers, and Tesla’s ecosystem is critical to the evolution of AI, particularly in autonomous vehicles. The discussion underscored how AI spending is reshaping the tech sector, with companies like Microsoft, Meta, and Tesla all vying for leadership.
Attention then shifted to Apple, which was set to report holiday quarter results driven by strong iPhone 17 sales, particularly in China. Zino noted that while Apple’s China numbers are expected to be robust, the sustainability of that growth is uncertain. He also mentioned concerns about rising memory costs, though he believes this won’t impact margins in the near term. Apple’s long-term story, he said, remains centered on services growth and margin expansion.
The latter part of the show addressed political developments, particularly the fallout from federal immigration enforcement actions in Minneapolis and their impact on national politics. The hosts spoke with David Gura about the Biden administration’s approach to border enforcement, the role of local and state leaders like California Governor Gavin Newsom, and the shifting dynamics within the Democratic Party. They also discussed Senator Amy Klobuchar’s announcement to run for Minnesota governor, reflecting broader changes in state and national leadership as the country heads toward the midterm elections.