US EditionBig US Tech Stocks Swing as Investors Probe AI Spending
Alphabet rose nearly 7% after revenue topped estimates, while Microsoft and Meta fell on spending and growth concerns.
- On Wednesday, Google-parent Alphabet shares jumped almost 6% after strong earnings, while Meta Platforms and Microsoft shares slid amid investor concerns about rising artificial intelligence development costs.
- Investors have grown increasingly wary of whether massive AI capital outlays will generate returns, prompting Meta to cut roughly 8,000 jobs and Microsoft to report $31.9 billion in quarterly capital expenditures.
- Alphabet reported revenue of $82.9 billion for the quarter ended March 31, while Meta announced expenses reaching up to $33.4 billion as it pursues "superintelligence," despite both topping earnings expectations.
- Dan Ives of Wedbush Securities noted that Alphabet "remains one of the top names in the AI Revolution" given its vertically integrated approach across Search, YouTube, and advertising.
- Tech giants collectively plan to spend more than half of a trillion dollars on AI this year, with Amazon committing to spend more than $100 billion on AWS cloud services in the coming years.
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41 Articles
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Alphabet, Amazon Outpace Meta in AI During Earnings Bonanza
A frenzied day of earnings reports offered a glimpse at how some of the world’s biggest tech companies are doing in artificial intelligence. The upshot: Alphabet Inc.’s Google is seeing a clear payoff from its AI spending, while Meta Platforms Inc. is lagging behind.
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Google-parent Alphabet soars as Meta stumbles over AI costs
Google-parent Alphabet impressed Wall Street with its latest quarterly earnings on Wednesday, as big tech rival Meta left investors lukewarm amid concerns about the huge cost of AI development.
Big Tech firms beat earnings expectations amid AI spending questions
Alphabet, Amazon, Meta, and Microsoft all beat first-quarter earnings expectations on Wednesday, but investors are poised to closely scrutinize their heavy spending on AI.Big Tech has propped up the US stock market — and in many ways, the US economy writ large — in the last year, but investors have grown anxious over whether the companies can justify their sky-high expenditures.A report this week on OpenAI’s missed revenue and user targets added…
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