Big Tech earnings test record stock market rally as AI spending takes center stage
Four leading tech companies reported quarterly results that beat Wall Street's forecasts but fell short of investors' high expectations, with Alphabet's results being the most enthusiastically received. The major U.S. stock indexes remain near all-time highs despite geopolitical tensions and dismal consumer sentiment.
Four leading tech companies reported quarterly results that beat Wall Street's forecasts but fell short of investors' high expectations. Alphabet's shares climbed as much as 6% in after-hours trading after it reported earnings and revenue that beat analysts' expectations and raised its estimate of AI infrastructure spending. Meta's shares fell more than 5% after it said revenue growth would stay flat in the second quarter. Amazon and Microsoft's results were mixed, with both being sent lower by about 3%. The S&P 500's performance is heavily influenced by 'The Magnificent 7' tech companies, which have reported the highest average net profit margins in over 15 years. Investors are focused on the companies' projections for future AI spending and how they align with revenue.
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