Wall Street Roundup: Tech Reports
Meta and Alphabet reported earnings, both beating expectations and announcing increased capital expenditure spending, but Meta's stock dropped 9% while Alphabet's rose 10%. The difference is attributed to investor confidence in Alphabet's AI capabilities and spending.
Five of the 'Magnificent Seven' tech companies reported earnings, including Meta and Alphabet. Both companies beat expectations and raised their capital expenditure spending targets, but reacted differently on the market. Meta's stock dropped 9% while Alphabet's rose 10%. The disparity is attributed to investor confidence in Alphabet's AI capabilities, with Alphabet perceived as ahead of Meta in AI development. Alphabet is expected to spend around $190 billion by 2026, while Meta is expected to spend around $145 billion. Mark Zuckerberg justified Meta's recent layoffs by stating that increased spending on AI means less spending on personnel.
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