Market Musings 10/30/2024
Quick thoughts on the markets and major portfolio news. Not on Ursa yet? Download Ursa from the App Store!
Some quick #AI takeaways from #BigTech earnings
We had Google report earnings yesterday and got both Microsoft and Facebook today. Investors are focused on returns from #AI to justify heavy spending on server infrastructure.
So how did they do?
Google was a winner…
Google saw broad growth particularly Cloud up +35% Y/Y driven by #AI. Meanwhile, CapEx spending was flat Q/Q with Q4 expected to be similar.
However, Microsoft and Facebook lost.
Microsoft’s earnings beat with Azure cloud revenues also benefiting. However, spending rose from last quarter with expectations to continue to increase. Microsoft was mostly flat aftermarket until announcing the CapEx increase when the price plunged.
Similarly, Facebook beat as well, but increased this year’s spending plans with expectations for next year to be higher.
As expected, investors are laser focused on #AI spending. It seems Google got the pass with more muted spending, while Microsoft and Facebook got punished for continuing to increase it.
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