Wall Street Cheers Big Tech Profits While Average Americans Brace for More Pain

Microsoft and Meta cash in on AI boom as Trump-era tariffs squeeze Main Street

While everyday Americans grapple with soaring costs and stagnant wages, corporate giants like Microsoft and Meta are celebrating multi-billion-dollar profits—thanks in large part to the AI gold rush and strategic plays that shield them from economic headwinds.

On Wednesday, the two tech behemoths shattered Wall Street expectations. Microsoft reported a staggering $70.1 billion in quarterly revenue, with $25.8 billion in profit—an 18% increase. Meta wasn’t far behind, pulling in $42.3 billion in revenue and raking in $16.6 billion in profit, a 35% surge.

But don’t be fooled by the headlines. These companies didn’t just “weather the storm”—they capitalized on it.

While small businesses and consumers feel the squeeze from trade war-fueled inflation and tariff uncertainty stemming from policies re-energized under Trump’s economic shadow, Big Tech is investing billions into AI infrastructure, gobbling up market share, and rewriting the rules of capitalism in real time.

Meta, for instance, quietly raised its 2025 capital expenditure estimate to a jaw-dropping $72 billion, citing increased investments in AI data centers. Meanwhile, Microsoft’s cloud empire continues to expand, with Azure-fueled growth driving a 22% revenue spike in its server segment.

Yet behind the celebratory earnings calls lies a more cynical reality: corporate America is thriving while the rest of the country picks up the tab. Microsoft even admitted its inventory glut in the Windows segment is due to “tariff uncertainty”—a problem it can afford to sit on, unlike small tech suppliers and consumers dealing with price hikes and layoffs.

The Takeaway: The AI arms race is enriching tech oligarchs faster than any industrial boom in history—and they’re doing it while the public remains distracted by political theater and economic gaslighting.