So far, the big techs have posted a mixed bag of earnings results. Although Meta Platforms' earnings have exceeded market expectations, its disappointing business outlook and accelerated spending on artificial intelligence worry investors, sending its share price plunging as high as 16% before settling at 10% fall (ouch!) at market close. Likewise, Google's parent Alphabet and Microsoft have surpassed analysts' forecasts in their earnings with the former even announcing its first ever dividend and intent to sustain the quarterly payouts. The duo rallied after their earnings releases and brough cheers to the broad market as well.
The continual outsized capital expenditure in building and enhancing AI capabilities by the big techs are good news for $NVIDIA Corp(NVDA)$
$Amazon.com(AMZN)$
Even though Apple is encountering rising competition from the likes of Huawei in China, the slowdown has been largely priced in given its stock price weakness and trailing behind its peers. An upbeat outlook either from growth recovery with forthcoming new launches or rollout of AI initiatives should help to bolster its stock. While Apple has been trailing behind its peers in AI, the company has lately been making AI-related acquisitions and announcements may be in the pipeline that will bring cheers to its shareholders.
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