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07-18
.KW ge gets f KE s4
Microsoft, Meta, Amazon and Google Face This Growing Risk Around AI
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Large technology companies are pouring money into artificial-intelligence hardware purchases - and those moves are \"not without risk,\" according to Moody's analysts.Alphabet Inc. , Amazon.com Inc. , Meta Platforms Inc. and Microsoft Corp. are among those with swelling capital-expense budgets that the team at Moody's said will support data-center capacity in the years to come.\"Some of their centers cover more than 500,000 square feet - about the size of six soccer pitches - and cost upwards of $1 billion to construct,\" the analysts, led by Rai Joshi, wrote in a Wednesday report. The goal is to bring about new AI functions for consumers and businesses.\"If demand for AI applications by enterprises turns out lower than expected, for example, they may have to wait longer than anticipated to realize returns on their inves","content":"<html><head></head><body><p>If AI revenue doesn't come about as quickly as expected, large tech companies could see margin pressure and have to wait longer for returns on their massive investments</p><p>Large technology companies are pouring money into artificial-intelligence hardware purchases - and those moves are "not without risk," according to Moody's analysts.</p><p>Alphabet Inc. <a href=\"https://laohu8.com/S/GOOG\">$(GOOG)$</a> <a href=\"https://laohu8.com/S/GOOGL\">$(GOOGL)$</a>, Amazon.com Inc. <a href=\"https://laohu8.com/S/AMZN\">$(AMZN)$</a>, <a href=\"https://laohu8.com/S/META\">Meta Platforms</a> Inc. (META) and Microsoft Corp. <a href=\"https://laohu8.com/S/MSFT\">$(MSFT)$</a> are among those with swelling capital-expense budgets that the team at Moody's said will support data-center capacity in the years to come.</p><p>"Some of their centers cover more than 500,000 square feet - about the size of six soccer pitches - and cost upwards of $1 billion to construct," the analysts, led by Rai Joshi, wrote in a Wednesday report. The goal is to bring about new AI functions for consumers and businesses.</p><p>Hyperscale cloud providers could together spend upward of $48 billion more on information-technology budgets this year, which is a much larger increase than those seen in recent years. But as these companies accelerate their bets on AI infrastructure, there's no guarantee the trend will play out as they project.</p><p>Don't miss: Tech selloff erases $1.1 trillion of 'Magnificent Seven' market cap in five days</p><p>"If demand for AI applications by enterprises turns out lower than expected, for example, they may have to wait longer than anticipated to realize returns on their investments," the analysts noted.</p><p>Plus, as the market for AI offerings gets more competitive, that dynamic "could force pricing of AI services down, squeezing margins below those they currently enjoy from their existing core businesses such as search, software, digital advertising or existing third-party cloud services," according to Moody's.</p><p>In turn, these companies that "have generally held their margins steady," partly through cost cuts elsewhere in their businesses, may face growing pressure from investors to allocate more money toward capital returns if margins weaken, the analysts wrote, adding: "This could erode their creditworthiness over time."</p><p>It's worth noting that this spending is all "easily affordable" for Microsoft, Alphabet, Apple Inc. <a href=\"https://laohu8.com/S/AAPL\">$(AAPL)$</a>, Amazon and Meta, Moody's said. That's because those companies "have robust cash balances and they generate substantial free cash flow (after dividends) from their existing operations."</p><p>Aside from Amazon, which has a 1.7x leverage ratio, the other four have ratios of adjusted total debt to earnings before interest, taxes, depreciation and amortization (Ebitda) that are less than 1.0x, the Moody's team noted.</p><p>Yet Oracle Corp. <a href=\"https://laohu8.com/S/ORCL\">$(ORCL)$</a> is also spending up on AI infrastructure, and its financial position is a bit different, the analysts said. "Oracle has lesser financial flexibility than its hyperscaler peers, as its cash balances have declined and gross debt has increased sharply in recent years as a result of its large share repurchases and acquisition spending."</p><p>Moody's calculates a 4.3x ratio of adjusted total debt to Ebitda for Oracle.</p><p>There's been growing concern on Wall Street about the pace of AI spending and whether the companies pouring big bucks into AI buildouts will generate enough revenue to match those investments.</p><p>Barclays analysts recently asked if companies were spending out of the "fear of missing out" - also known as FOMO - or if they were about to recognize huge AI revenue in a "Field of Dreams" situation.</p><p>"We are leaning FOMO and expect someone to flinch next year, but it's still very early for AI," they concluded.</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Microsoft, Meta, Amazon and Google Face This Growing Risk Around AI</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMicrosoft, Meta, Amazon and Google Face This Growing Risk Around AI\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2024-07-18 09:38</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>If AI revenue doesn't come about as quickly as expected, large tech companies could see margin pressure and have to wait longer for returns on their massive investments</p><p>Large technology companies are pouring money into artificial-intelligence hardware purchases - and those moves are "not without risk," according to Moody's analysts.</p><p>Alphabet Inc. <a href=\"https://laohu8.com/S/GOOG\">$(GOOG)$</a> <a href=\"https://laohu8.com/S/GOOGL\">$(GOOGL)$</a>, Amazon.com Inc. <a href=\"https://laohu8.com/S/AMZN\">$(AMZN)$</a>, <a href=\"https://laohu8.com/S/META\">Meta Platforms</a> Inc. (META) and Microsoft Corp. <a href=\"https://laohu8.com/S/MSFT\">$(MSFT)$</a> are among those with swelling capital-expense budgets that the team at Moody's said will support data-center capacity in the years to come.</p><p>"Some of their centers cover more than 500,000 square feet - about the size of six soccer pitches - and cost upwards of $1 billion to construct," the analysts, led by Rai Joshi, wrote in a Wednesday report. The goal is to bring about new AI functions for consumers and businesses.</p><p>Hyperscale cloud providers could together spend upward of $48 billion more on information-technology budgets this year, which is a much larger increase than those seen in recent years. But as these companies accelerate their bets on AI infrastructure, there's no guarantee the trend will play out as they project.</p><p>Don't miss: Tech selloff erases $1.1 trillion of 'Magnificent Seven' market cap in five days</p><p>"If demand for AI applications by enterprises turns out lower than expected, for example, they may have to wait longer than anticipated to realize returns on their investments," the analysts noted.</p><p>Plus, as the market for AI offerings gets more competitive, that dynamic "could force pricing of AI services down, squeezing margins below those they currently enjoy from their existing core businesses such as search, software, digital advertising or existing third-party cloud services," according to Moody's.</p><p>In turn, these companies that "have generally held their margins steady," partly through cost cuts elsewhere in their businesses, may face growing pressure from investors to allocate more money toward capital returns if margins weaken, the analysts wrote, adding: "This could erode their creditworthiness over time."</p><p>It's worth noting that this spending is all "easily affordable" for Microsoft, Alphabet, Apple Inc. <a href=\"https://laohu8.com/S/AAPL\">$(AAPL)$</a>, Amazon and Meta, Moody's said. That's because those companies "have robust cash balances and they generate substantial free cash flow (after dividends) from their existing operations."</p><p>Aside from Amazon, which has a 1.7x leverage ratio, the other four have ratios of adjusted total debt to earnings before interest, taxes, depreciation and amortization (Ebitda) that are less than 1.0x, the Moody's team noted.</p><p>Yet Oracle Corp. <a href=\"https://laohu8.com/S/ORCL\">$(ORCL)$</a> is also spending up on AI infrastructure, and its financial position is a bit different, the analysts said. "Oracle has lesser financial flexibility than its hyperscaler peers, as its cash balances have declined and gross debt has increased sharply in recent years as a result of its large share repurchases and acquisition spending."</p><p>Moody's calculates a 4.3x ratio of adjusted total debt to Ebitda for Oracle.</p><p>There's been growing concern on Wall Street about the pace of AI spending and whether the companies pouring big bucks into AI buildouts will generate enough revenue to match those investments.</p><p>Barclays analysts recently asked if companies were spending out of the "fear of missing out" - also known as FOMO - or if they were about to recognize huge AI revenue in a "Field of Dreams" situation.</p><p>"We are leaning FOMO and expect someone to flinch next year, but it's still very early for AI," they concluded.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"GOOG":"谷歌","IE0004086264.USD":"BNY MELLON GLOBAL OPPORTUNITIES \"A\" (USD) ACC","LU0056508442.USD":"贝莱德世界科技基金A2","GOOGL":"谷歌A","LU1037948897.HKD":"AB LOW VOLATILITY EQUITY PORTFOLIO \"AD\" (HKD) INC","GB00B4LPDJ14.GBP":"FUNDSMITH EQUITY \"R\" (GBP) ACC","IE00BKDWB100.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5H\" (SGDHDG) ACC","AAPL":"苹果","BK4581":"高盛持仓","BK4587":"ChatGPT概念","LU0965509010.AUD":"AB LOW VOLATILITY EQUITY PORTFOLIO \"AD\" (AUDHDG) INC","IE000W1ABFV2.USD":"PIMCO BALANCED INCOME AND GROWTH \"R\" (USD) INC","BK4576":"AR","IE00BK4W5L77.USD":"HSBC GLOBAL FUNDS ICAV US EQUITY INDEX \"HC\" (USD) ACC","BK4220":"综合零售","ORCL":"甲骨文","LU0175139822.USD":"AB FCP I Global Equity Blend A USD","IE00B19Z8X17.USD":"FTGF CLEARBRIDGE US LARGE CAP GROWTH \"AG\" (USD) ACC","LU0211328371.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (MDIS) (USD) INC","BK4559":"巴菲特持仓","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","LU2236285917.USD":"ALLIANZ GLOBAL INCOME \"AMG\" (USD) INC","LU0466842654.USD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"A\" (USD) ACC","LU1935043023.USD":"MANULIFE GF GLOBAL MULTI-ASSET DIVERSIFIED INCOME \"AA\" (USD) INC A","LU0786609619.USD":"高盛全球千禧一代股票组合Acc","LU0097036916.USD":"贝莱德美国增长A2 USD","BK4588":"碎股","LU0861579265.USD":"联博低波幅策略股票基金A","IE0003U64NQ7.SGD":"PIMCO BALANCED INCOME AND GROWTH \"M\" (SGDHDG) ACC","IE00BMPRXQ63.HKD":"NEUBERGER BERMAN NEXT GENERATION CONNECTIVITY FUND \"A\" (HKDHDG) ACC","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","BK4503":"景林资产持仓","IE00B775H168.HKD":"JANUS HENDERSON BALANCED \"A5M\" (HKD) INC","MSFT":"微软","BK4551":"寇图资本持仓","AMZN":"亚马逊","LU0211327993.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (USD) ACC","IE0034235188.USD":"PINEBRIDGE GLOBAL FOCUS EQUITY \"A\" (USD) ACC","BK4097":"系统软件","LU1035773651.USD":"AB SICAV I - GLOBAL VALUE PORTFOLIO \"AD\" (USD) INC","LU0289941410.SGD":"AB FCP I Dynamic Diversified AX SGD","IE00B5TLWC47.USD":"BNY MELLON LONG-TERM GLOBAL EQUITY \"B\" (USD) ACC","LU0433182093.SGD":"First Eagle Amundi International AS-C SGD","BK4574":"无人驾驶","IE0004445239.USD":"JANUS HENDERSON US FORTY \"A2\" (USD) ACC","IE00BJJMRX11.SGD":"Janus Henderson Balanced A Acc SGD","LU1506573853.SGD":"MANULIFE GF GLOBAL EQUITY \"AA\" (SGD) INC","META":"Meta Platforms, Inc.","LU0052756011.USD":"TEMPLETON GLOBAL BALANCED \"A\" (USD) INC","LU0079474960.USD":"联博美国增长基金A"},"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2452186261","content_text":"If AI revenue doesn't come about as quickly as expected, large tech companies could see margin pressure and have to wait longer for returns on their massive investmentsLarge technology companies are pouring money into artificial-intelligence hardware purchases - and those moves are \"not without risk,\" according to Moody's analysts.Alphabet Inc. $(GOOG)$ $(GOOGL)$, Amazon.com Inc. $(AMZN)$, Meta Platforms Inc. (META) and Microsoft Corp. $(MSFT)$ are among those with swelling capital-expense budgets that the team at Moody's said will support data-center capacity in the years to come.\"Some of their centers cover more than 500,000 square feet - about the size of six soccer pitches - and cost upwards of $1 billion to construct,\" the analysts, led by Rai Joshi, wrote in a Wednesday report. The goal is to bring about new AI functions for consumers and businesses.Hyperscale cloud providers could together spend upward of $48 billion more on information-technology budgets this year, which is a much larger increase than those seen in recent years. But as these companies accelerate their bets on AI infrastructure, there's no guarantee the trend will play out as they project.Don't miss: Tech selloff erases $1.1 trillion of 'Magnificent Seven' market cap in five days\"If demand for AI applications by enterprises turns out lower than expected, for example, they may have to wait longer than anticipated to realize returns on their investments,\" the analysts noted.Plus, as the market for AI offerings gets more competitive, that dynamic \"could force pricing of AI services down, squeezing margins below those they currently enjoy from their existing core businesses such as search, software, digital advertising or existing third-party cloud services,\" according to Moody's.In turn, these companies that \"have generally held their margins steady,\" partly through cost cuts elsewhere in their businesses, may face growing pressure from investors to allocate more money toward capital returns if margins weaken, the analysts wrote, adding: \"This could erode their creditworthiness over time.\"It's worth noting that this spending is all \"easily affordable\" for Microsoft, Alphabet, Apple Inc. $(AAPL)$, Amazon and Meta, Moody's said. That's because those companies \"have robust cash balances and they generate substantial free cash flow (after dividends) from their existing operations.\"Aside from Amazon, which has a 1.7x leverage ratio, the other four have ratios of adjusted total debt to earnings before interest, taxes, depreciation and amortization (Ebitda) that are less than 1.0x, the Moody's team noted.Yet Oracle Corp. $(ORCL)$ is also spending up on AI infrastructure, and its financial position is a bit different, the analysts said. \"Oracle has lesser financial flexibility than its hyperscaler peers, as its cash balances have declined and gross debt has increased sharply in recent years as a result of its large share repurchases and acquisition spending.\"Moody's calculates a 4.3x ratio of adjusted total debt to Ebitda for Oracle.There's been growing concern on Wall Street about the pace of AI spending and whether the companies pouring big bucks into AI buildouts will generate enough revenue to match those investments.Barclays analysts recently asked if companies were spending out of the \"fear of missing out\" - also known as FOMO - or if they were about to recognize huge AI revenue in a \"Field of Dreams\" situation.\"We are leaning FOMO and expect someone to flinch next year, but it's still very early for AI,\" they concluded.","news_type":1},"isVote":1,"tweetType":1,"viewCount":172,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"hots":[{"id":328776625746160,"gmtCreate":1721292856525,"gmtModify":1721293656260,"author":{"id":"4097750837227690","authorId":"4097750837227690","name":"ZCHARM","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":3,"crmLevelSwitch":1,"followedFlag":false,"idStr":"4097750837227690","authorIdStr":"4097750837227690"},"themes":[],"htmlText":".KW ge gets f KE s4","listText":".KW ge gets f KE s4","text":".KW ge gets f KE s4","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/328776625746160","repostId":"2452186261","repostType":2,"repost":{"id":"2452186261","kind":"highlight","weMediaInfo":{"introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"media_name":"Dow Jones","id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"pubTimestamp":1721266705,"share":"https://ttm.financial/m/news/2452186261?lang=&edition=fundamental","pubTime":"2024-07-18 09:38","market":"nz","language":"en","title":"Microsoft, Meta, Amazon and Google Face This Growing Risk Around AI","url":"https://stock-news.laohu8.com/highlight/detail?id=2452186261","media":"Dow Jones","summary":"If AI revenue doesn't come about as quickly as expected, large tech companies could see margin pressure and have to wait longer for returns on their massive investments. Large technology companies are pouring money into artificial-intelligence hardware purchases - and those moves are \"not without risk,\" according to Moody's analysts.Alphabet Inc. , Amazon.com Inc. , Meta Platforms Inc. and Microsoft Corp. are among those with swelling capital-expense budgets that the team at Moody's said will support data-center capacity in the years to come.\"Some of their centers cover more than 500,000 square feet - about the size of six soccer pitches - and cost upwards of $1 billion to construct,\" the analysts, led by Rai Joshi, wrote in a Wednesday report. The goal is to bring about new AI functions for consumers and businesses.\"If demand for AI applications by enterprises turns out lower than expected, for example, they may have to wait longer than anticipated to realize returns on their inves","content":"<html><head></head><body><p>If AI revenue doesn't come about as quickly as expected, large tech companies could see margin pressure and have to wait longer for returns on their massive investments</p><p>Large technology companies are pouring money into artificial-intelligence hardware purchases - and those moves are "not without risk," according to Moody's analysts.</p><p>Alphabet Inc. <a href=\"https://laohu8.com/S/GOOG\">$(GOOG)$</a> <a href=\"https://laohu8.com/S/GOOGL\">$(GOOGL)$</a>, Amazon.com Inc. <a href=\"https://laohu8.com/S/AMZN\">$(AMZN)$</a>, <a href=\"https://laohu8.com/S/META\">Meta Platforms</a> Inc. (META) and Microsoft Corp. <a href=\"https://laohu8.com/S/MSFT\">$(MSFT)$</a> are among those with swelling capital-expense budgets that the team at Moody's said will support data-center capacity in the years to come.</p><p>"Some of their centers cover more than 500,000 square feet - about the size of six soccer pitches - and cost upwards of $1 billion to construct," the analysts, led by Rai Joshi, wrote in a Wednesday report. The goal is to bring about new AI functions for consumers and businesses.</p><p>Hyperscale cloud providers could together spend upward of $48 billion more on information-technology budgets this year, which is a much larger increase than those seen in recent years. But as these companies accelerate their bets on AI infrastructure, there's no guarantee the trend will play out as they project.</p><p>Don't miss: Tech selloff erases $1.1 trillion of 'Magnificent Seven' market cap in five days</p><p>"If demand for AI applications by enterprises turns out lower than expected, for example, they may have to wait longer than anticipated to realize returns on their investments," the analysts noted.</p><p>Plus, as the market for AI offerings gets more competitive, that dynamic "could force pricing of AI services down, squeezing margins below those they currently enjoy from their existing core businesses such as search, software, digital advertising or existing third-party cloud services," according to Moody's.</p><p>In turn, these companies that "have generally held their margins steady," partly through cost cuts elsewhere in their businesses, may face growing pressure from investors to allocate more money toward capital returns if margins weaken, the analysts wrote, adding: "This could erode their creditworthiness over time."</p><p>It's worth noting that this spending is all "easily affordable" for Microsoft, Alphabet, Apple Inc. <a href=\"https://laohu8.com/S/AAPL\">$(AAPL)$</a>, Amazon and Meta, Moody's said. That's because those companies "have robust cash balances and they generate substantial free cash flow (after dividends) from their existing operations."</p><p>Aside from Amazon, which has a 1.7x leverage ratio, the other four have ratios of adjusted total debt to earnings before interest, taxes, depreciation and amortization (Ebitda) that are less than 1.0x, the Moody's team noted.</p><p>Yet Oracle Corp. <a href=\"https://laohu8.com/S/ORCL\">$(ORCL)$</a> is also spending up on AI infrastructure, and its financial position is a bit different, the analysts said. "Oracle has lesser financial flexibility than its hyperscaler peers, as its cash balances have declined and gross debt has increased sharply in recent years as a result of its large share repurchases and acquisition spending."</p><p>Moody's calculates a 4.3x ratio of adjusted total debt to Ebitda for Oracle.</p><p>There's been growing concern on Wall Street about the pace of AI spending and whether the companies pouring big bucks into AI buildouts will generate enough revenue to match those investments.</p><p>Barclays analysts recently asked if companies were spending out of the "fear of missing out" - also known as FOMO - or if they were about to recognize huge AI revenue in a "Field of Dreams" situation.</p><p>"We are leaning FOMO and expect someone to flinch next year, but it's still very early for AI," they concluded.</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Microsoft, Meta, Amazon and Google Face This Growing Risk Around AI</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMicrosoft, Meta, Amazon and Google Face This Growing Risk Around AI\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2024-07-18 09:38</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>If AI revenue doesn't come about as quickly as expected, large tech companies could see margin pressure and have to wait longer for returns on their massive investments</p><p>Large technology companies are pouring money into artificial-intelligence hardware purchases - and those moves are "not without risk," according to Moody's analysts.</p><p>Alphabet Inc. <a href=\"https://laohu8.com/S/GOOG\">$(GOOG)$</a> <a href=\"https://laohu8.com/S/GOOGL\">$(GOOGL)$</a>, Amazon.com Inc. <a href=\"https://laohu8.com/S/AMZN\">$(AMZN)$</a>, <a href=\"https://laohu8.com/S/META\">Meta Platforms</a> Inc. (META) and Microsoft Corp. <a href=\"https://laohu8.com/S/MSFT\">$(MSFT)$</a> are among those with swelling capital-expense budgets that the team at Moody's said will support data-center capacity in the years to come.</p><p>"Some of their centers cover more than 500,000 square feet - about the size of six soccer pitches - and cost upwards of $1 billion to construct," the analysts, led by Rai Joshi, wrote in a Wednesday report. The goal is to bring about new AI functions for consumers and businesses.</p><p>Hyperscale cloud providers could together spend upward of $48 billion more on information-technology budgets this year, which is a much larger increase than those seen in recent years. But as these companies accelerate their bets on AI infrastructure, there's no guarantee the trend will play out as they project.</p><p>Don't miss: Tech selloff erases $1.1 trillion of 'Magnificent Seven' market cap in five days</p><p>"If demand for AI applications by enterprises turns out lower than expected, for example, they may have to wait longer than anticipated to realize returns on their investments," the analysts noted.</p><p>Plus, as the market for AI offerings gets more competitive, that dynamic "could force pricing of AI services down, squeezing margins below those they currently enjoy from their existing core businesses such as search, software, digital advertising or existing third-party cloud services," according to Moody's.</p><p>In turn, these companies that "have generally held their margins steady," partly through cost cuts elsewhere in their businesses, may face growing pressure from investors to allocate more money toward capital returns if margins weaken, the analysts wrote, adding: "This could erode their creditworthiness over time."</p><p>It's worth noting that this spending is all "easily affordable" for Microsoft, Alphabet, Apple Inc. <a href=\"https://laohu8.com/S/AAPL\">$(AAPL)$</a>, Amazon and Meta, Moody's said. That's because those companies "have robust cash balances and they generate substantial free cash flow (after dividends) from their existing operations."</p><p>Aside from Amazon, which has a 1.7x leverage ratio, the other four have ratios of adjusted total debt to earnings before interest, taxes, depreciation and amortization (Ebitda) that are less than 1.0x, the Moody's team noted.</p><p>Yet Oracle Corp. <a href=\"https://laohu8.com/S/ORCL\">$(ORCL)$</a> is also spending up on AI infrastructure, and its financial position is a bit different, the analysts said. "Oracle has lesser financial flexibility than its hyperscaler peers, as its cash balances have declined and gross debt has increased sharply in recent years as a result of its large share repurchases and acquisition spending."</p><p>Moody's calculates a 4.3x ratio of adjusted total debt to Ebitda for Oracle.</p><p>There's been growing concern on Wall Street about the pace of AI spending and whether the companies pouring big bucks into AI buildouts will generate enough revenue to match those investments.</p><p>Barclays analysts recently asked if companies were spending out of the "fear of missing out" - also known as FOMO - or if they were about to recognize huge AI revenue in a "Field of Dreams" situation.</p><p>"We are leaning FOMO and expect someone to flinch next year, but it's still very early for AI," they concluded.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"GOOG":"谷歌","IE0004086264.USD":"BNY MELLON GLOBAL OPPORTUNITIES \"A\" (USD) ACC","LU0056508442.USD":"贝莱德世界科技基金A2","GOOGL":"谷歌A","LU1037948897.HKD":"AB LOW VOLATILITY EQUITY PORTFOLIO \"AD\" (HKD) INC","GB00B4LPDJ14.GBP":"FUNDSMITH EQUITY \"R\" (GBP) ACC","IE00BKDWB100.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5H\" (SGDHDG) ACC","AAPL":"苹果","BK4581":"高盛持仓","BK4587":"ChatGPT概念","LU0965509010.AUD":"AB LOW VOLATILITY EQUITY PORTFOLIO \"AD\" (AUDHDG) INC","IE000W1ABFV2.USD":"PIMCO BALANCED INCOME AND GROWTH \"R\" (USD) INC","BK4576":"AR","IE00BK4W5L77.USD":"HSBC GLOBAL FUNDS ICAV US EQUITY INDEX \"HC\" (USD) ACC","BK4220":"综合零售","ORCL":"甲骨文","LU0175139822.USD":"AB FCP I Global Equity Blend A USD","IE00B19Z8X17.USD":"FTGF CLEARBRIDGE US LARGE CAP GROWTH \"AG\" (USD) ACC","LU0211328371.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (MDIS) (USD) INC","BK4559":"巴菲特持仓","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","LU2236285917.USD":"ALLIANZ GLOBAL INCOME \"AMG\" (USD) INC","LU0466842654.USD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"A\" (USD) ACC","LU1935043023.USD":"MANULIFE GF GLOBAL MULTI-ASSET DIVERSIFIED INCOME \"AA\" (USD) INC A","LU0786609619.USD":"高盛全球千禧一代股票组合Acc","LU0097036916.USD":"贝莱德美国增长A2 USD","BK4588":"碎股","LU0861579265.USD":"联博低波幅策略股票基金A","IE0003U64NQ7.SGD":"PIMCO BALANCED INCOME AND GROWTH \"M\" (SGDHDG) ACC","IE00BMPRXQ63.HKD":"NEUBERGER BERMAN NEXT GENERATION CONNECTIVITY FUND \"A\" (HKDHDG) ACC","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","BK4503":"景林资产持仓","IE00B775H168.HKD":"JANUS HENDERSON BALANCED \"A5M\" (HKD) INC","MSFT":"微软","BK4551":"寇图资本持仓","AMZN":"亚马逊","LU0211327993.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (USD) ACC","IE0034235188.USD":"PINEBRIDGE GLOBAL FOCUS EQUITY \"A\" (USD) ACC","BK4097":"系统软件","LU1035773651.USD":"AB SICAV I - GLOBAL VALUE PORTFOLIO \"AD\" (USD) INC","LU0289941410.SGD":"AB FCP I Dynamic Diversified AX SGD","IE00B5TLWC47.USD":"BNY MELLON LONG-TERM GLOBAL EQUITY \"B\" (USD) ACC","LU0433182093.SGD":"First Eagle Amundi International AS-C SGD","BK4574":"无人驾驶","IE0004445239.USD":"JANUS HENDERSON US FORTY \"A2\" (USD) ACC","IE00BJJMRX11.SGD":"Janus Henderson Balanced A Acc SGD","LU1506573853.SGD":"MANULIFE GF GLOBAL EQUITY \"AA\" (SGD) INC","META":"Meta Platforms, Inc.","LU0052756011.USD":"TEMPLETON GLOBAL BALANCED \"A\" (USD) INC","LU0079474960.USD":"联博美国增长基金A"},"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2452186261","content_text":"If AI revenue doesn't come about as quickly as expected, large tech companies could see margin pressure and have to wait longer for returns on their massive investmentsLarge technology companies are pouring money into artificial-intelligence hardware purchases - and those moves are \"not without risk,\" according to Moody's analysts.Alphabet Inc. $(GOOG)$ $(GOOGL)$, Amazon.com Inc. $(AMZN)$, Meta Platforms Inc. (META) and Microsoft Corp. $(MSFT)$ are among those with swelling capital-expense budgets that the team at Moody's said will support data-center capacity in the years to come.\"Some of their centers cover more than 500,000 square feet - about the size of six soccer pitches - and cost upwards of $1 billion to construct,\" the analysts, led by Rai Joshi, wrote in a Wednesday report. The goal is to bring about new AI functions for consumers and businesses.Hyperscale cloud providers could together spend upward of $48 billion more on information-technology budgets this year, which is a much larger increase than those seen in recent years. But as these companies accelerate their bets on AI infrastructure, there's no guarantee the trend will play out as they project.Don't miss: Tech selloff erases $1.1 trillion of 'Magnificent Seven' market cap in five days\"If demand for AI applications by enterprises turns out lower than expected, for example, they may have to wait longer than anticipated to realize returns on their investments,\" the analysts noted.Plus, as the market for AI offerings gets more competitive, that dynamic \"could force pricing of AI services down, squeezing margins below those they currently enjoy from their existing core businesses such as search, software, digital advertising or existing third-party cloud services,\" according to Moody's.In turn, these companies that \"have generally held their margins steady,\" partly through cost cuts elsewhere in their businesses, may face growing pressure from investors to allocate more money toward capital returns if margins weaken, the analysts wrote, adding: \"This could erode their creditworthiness over time.\"It's worth noting that this spending is all \"easily affordable\" for Microsoft, Alphabet, Apple Inc. $(AAPL)$, Amazon and Meta, Moody's said. That's because those companies \"have robust cash balances and they generate substantial free cash flow (after dividends) from their existing operations.\"Aside from Amazon, which has a 1.7x leverage ratio, the other four have ratios of adjusted total debt to earnings before interest, taxes, depreciation and amortization (Ebitda) that are less than 1.0x, the Moody's team noted.Yet Oracle Corp. $(ORCL)$ is also spending up on AI infrastructure, and its financial position is a bit different, the analysts said. \"Oracle has lesser financial flexibility than its hyperscaler peers, as its cash balances have declined and gross debt has increased sharply in recent years as a result of its large share repurchases and acquisition spending.\"Moody's calculates a 4.3x ratio of adjusted total debt to Ebitda for Oracle.There's been growing concern on Wall Street about the pace of AI spending and whether the companies pouring big bucks into AI buildouts will generate enough revenue to match those investments.Barclays analysts recently asked if companies were spending out of the \"fear of missing out\" - also known as FOMO - or if they were about to recognize huge AI revenue in a \"Field of Dreams\" situation.\"We are leaning FOMO and expect someone to flinch next year, but it's still very early for AI,\" they concluded.","news_type":1},"isVote":1,"tweetType":1,"viewCount":172,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"lives":[]}
