Microsoft vs. Meta Platforms: Which Is the Better Magnificent Seven Stock to Buy Right Now?

Microsoft and Meta both reported earnings on July 29, 2026, but with starkly different market reactions. Microsoft's stock surged 15% after the company demonstrated prudent AI infrastructure spending with $175B capex (below analyst estimates) while maintaining cash flow positivity and posting strong revenue growth of 18% and EPS growth of 22%. Meta's stock fell 9% as aggressive AI infrastructure investments caused free cash flow to plummet from $8.55B to $784M, with EPS missing consensus estimates and capex guidance raised to $130-145B (a 90% increase year-over-year). Analysts favor Microsoft for its balanced growth strategy and stronger earnings outlook.