KEY TAKEAWAYS rummy wealth
- rummy wealth Artificial intelligence was in the spotlight in Meta Platforms, Google parent company Alphabet, and Microsoft earnings reports, but investors were difficult to please despite the companies’ earnings beats.rummy passion 51 bonus
- All three tech giants planned to ramp up AI-related capital expenditures, but Meta shares tumbled as its AI spending raised near-term concerns. online rummy circle
- Meta pointed to the early success it has seen in integrating AI tech into its recommendation engine, but investors seemed to want more clarity on how the AI investments could translate to advertising revenue.
- Microsoft and Alphabet reported earnings beats supported by their cloud segments as the companies leverage AI in improving their existing cloud platforms for enterprise customers. rummy wealth
Artificial intelligence (AI) was in focus as Meta Platforms (META), Google-parent Alphabet (GOOGL), and Microsoft (MSFT) reported earnings this week, but investors weren’t easily impressed despite better-than-expected results posted by all three tech giants.
Meta shares plunged after the company emphasized increased spending to invest in AI. Meanwhile, Alphabet shares surged and Microsoft shares gained as cloud strength seems to ease investors’ concerns about the increased AI spending.
Big tech earnings demonstrated that companies’ enterprise customer businesses were key to AI monetization last quarter. The emphasis on enterprise offerings persisted with a focus on cloud segments.
AI Spending Ramps Up rummy wealth
Meta’s earnings beat was overshadowed by the company’s plans to increase spending on AI investments which sent the stock tumbling. The worry for investors in the near term was perhaps how quickly the investment would yield returns, even as analysts said it could boost Meta’s position in the long term.
However, investors didn’t seem to feel that way about Meta’s counterparts.
Alphabet noted increased spending fueled by AI investments. AI-related growth in Google Cloud and YouTube “support the notion that Google is seeing AI tailwinds across the business,” analysts at Raymond James wrote.1
Can AI Spend Translate Into Ad Revenue? rummy wealth
While Meta has highlighted its early success in leveraging its AI tech, analysts say investors are looking for more clarity on how it can contribute to the company’s existing structure.
“Upside in the near term may be limited,” Wedbush analysts wrote in a note, adding that investors are waiting for “more clarity on potential 2025 spending levels,” evidence that the company can meet growth expectations despite harder comparables, and sustainable user and advertiser engagement with new AI offerings.
The company generates almost all of its revenue from advertising and has been increasingly looking at ways to leverage AI to boost that revenue. Meta reported that 30% of the content users see on Facebook and 50% on Instagram is delivered by its AI recommendation engines which improve engagement and increase ad efficiency.
Cloud Is Key For Enterprise Customers
At Alphabet’s recent Google Cloud Next conference, hundreds of the company’s enterprise customers spoke about using the cloud platform’s genAI tools, with some notable business users including Mercedes Benz and Walmart (WMT).
Pichai outlined the company’s “clear paths to AI monetization through Ads and Cloud.” He said the “cloud business continues to grow as we bring the best of Google AI to enterprise customers.”
While AI initiatives are top of mind for investors, Microsoft’s cloud strength fueled its third-quarter earnings beat.
“Cloud and AI continued to fuel upside for Microsoft,” Bank of America analysts wrote, saying they “believe Azure strength is enough to drive total revenue growth higher for now.”2
Microsoft’s Hood said “I know it isn’t as exciting as talking about all the AI projects,” but Azure “is still really foundational” to the company’s enterprise customers.
Do you have a news tip for Investopedia reporters? Please email us at
SPONSORED
Trade on the Go. Anywhere, Anytime
One of the world’s largest crypto-asset exchanges is ready for you. Enjoy competitive fees and dedicated customer support while trading securely. You’ll also have access to Binance tools that make it easier than ever to view your trade history, manage auto-investments, view price charts, and make conversions with zero fees. Make an account for free and join millions of traders and investors on the global crypto market.