As AI Spend Continues to Soar, when Will Investors Start to Be Rewarded?
4 Articles
4 Articles
As AI spend continues to soar, when will investors start to be rewarded?
Market reactions were mixed off the back of latest quarterly earnings for the US tech giants, raising a big question – when will these companies’ huge expenditures start to bear fruit?It’s becoming clearer that the companies once thought of as a collective, the Magnificent 7 – Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Meta (NASDAQ:META), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA) – are no long…
The group of the seven American giants in technology, known as the "Magnificent Seven", seems to have lost its status as an uncontested engine of financial markets.
Analysis of the profits of the Magnificent 7 reveals three keys to AI trade: punishment of disappointments, need for concrete monetization and growing importance of free cash flow. *** Microsoft and Amazon exceed expectations, while Alphabet, Meta and Tesla disappoint in the second quarter. The market demands clear signs of AI monetization, not just promises. Free cash flow becomes a key metric to evaluate technological giants. The June quarter …
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