Meta Vs. Microsoft: Which Underpriced Mag 7 Titan Is a No Brainer?

Meta Platforms (NASDAQ: META) and Microsoft (NASDAQ: MSFT) some reported net connected April 29, 2026, and some person been punished successful 2026 contempt operational strength. Meta is disconnected 11.54% twelvemonth to date; Microsoft has fared worse astatine down 18.9%. The marketplace is asking which Mag 7 titan is genuinely the bargain.

Ad Engine Roars. Azure Backlog Balloons.

Meta delivered a jaw-dropping quarter: gross of $56.31 cardinal (+33.1% YoY) and EPS of $10.44 vs. $6.66 consensus. A $8.03 cardinal taxation payment flattered the bottommost line, but the underlying advertisement motor is genuinely hot, with advertisement impressions up 19% and terms per advertisement up 12% crossed a household reaching 3.56 cardinal regular users.

Microsoft's header was steadier. Revenue landed astatine $82.89 cardinal (+18.3%) with EPS of $4.27, a 4th consecutive beat. The existent communicative is contracted demand. Commercial RPO astir doubled to $627 billion, and the AI concern deed a $37 cardinal annualized tally rate, up 123% YoY. Azure unsocial grew 40%.

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One Owns the Model. One Rents the Rails.

Meta is vertically integrated. Zuckerberg said the 4th marked "the merchandise of our archetypal exemplary from Meta Superintelligence Labs" and reiterated a program to "deliver idiosyncratic superintelligence to billions of people." Nadella framed Microsoft's relation differently, pointing to "cloud and AI infrastructure and solutions" for the agentic era, anchored by a restructured OpenAI involvement worthy astir $135 billion.

Valuation is wherever the divergence bites. Meta trades astatine astir 18x guardant net with a 0.80 PEG ratio, portion Microsoft carries a trailing P/E of 23. Both are spending furiously: Meta guided FY26 CapEx to $125 to $145 billion, and Microsoft's calendar 2026 CapEx is tracking toward $190 billion.