Big Tech earnings a test of the AI boom amid market turmoil
- Tech giants valued at over $10 trillion report earnings this week, with Alphabet, Microsoft, and Amazon facing investor scrutiny over AI infrastructure spending sustainability.
- Market confidence eroded after Meta Platforms reported earnings October 21, with shares dropping 6.1 per cent as the company raised future spending commitments by $125 billion to $825 billion.
- Bloomberg Intelligence projects Magnificent Seven earnings to climb about 34 per cent this year, yet Gabelli Funds portfolio manager John Belton warned investors have "absolutely no patience right now for higher capex."
- Gartner estimated more than $3.5 trillion of AI infrastructure spending faces impairment risk by 2030, prompting investors to flee data center stocks for the relative safety of Treasuries.
- BNY Wealth analyst Kevin Shea noted that positive free cash flow revisions could signal the bottom of the spending cycle, potentially easing concerns about AI revenue durability.
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37 Articles
Markets are expecting the results of Amazon, Microsoft and Alphabet, amid expectations of accelerated cloud computing growth, and concerns about the feasibility of spending up to $600 billion on artificial intelligence this year.
The Hyperscaler Alphabet and Microsoft will present their quarterly figures on Wednesday, Amazon one day later. Investors want to know if the billions of investments in artificial intelligence are paying off.
Channel News Asia
Big Tech earnings a test of the AI boom amid market turmoil
Oct 27 : Wall Street expects Amazon, Microsoft and Alphabet to report on Wednesday faster growth in their cloud businesses, but a turbulent market selloff and concerns over rising costs of AI financing are tempering optimism.Investors are pressing for evidence that the AI boom can deliver swift returns to jus
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