News/Investing
Investors want returns on Big Tech’s AI investments — here’s what’s standing in the way
AI investment surge strains tech giants' finances: Major tech companies are facing challenges as they pour billions into artificial intelligence development without seeing immediate returns, causing investor concern and market volatility. Microsoft and Meta have acknowledged that capital expenses will continue to rise as they expand data center capacity to meet AI demand, leading to a drop in share prices. The tech industry has yet to turn generative AI into a significant revenue source despite massive investments, creating tension with investors eager for returns. Supply constraints from chipmakers struggling to meet demand and high operational costs are exacerbating the financial...
read Nov 3, 2024Snap’s Q3 advertiser count doubles amid AI and AR push
Strong Q3 performance for Snap: Snap, the parent company of Snapchat, reported impressive financial results for the third quarter of 2024, with revenue growth and user engagement surpassing expectations. Revenue increased by 15% year-over-year to $1.37 billion, beating Wall Street estimates The number of active advertisers on the platform more than doubled compared to the same period last year Daily active users (DAUs) reached 443 million globally, a 9% increase from the previous year Total time spent watching content on Snapchat grew by 25% Direct-response advertising and subscriptions drive growth: Snap's revenue gains were primarily attributed to two key areas...
read Nov 2, 2024Nvidia joins Dow Jones, ousting Intel after 24-year run
AI giant Nvidia joins Dow Jones Industrial Average: Nvidia, a leader in artificial intelligence technology, is set to replace Intel on the prestigious Dow Jones Industrial Average, reflecting the growing importance of AI and advanced computing in the tech industry. The change will take effect on November 8, 2024, marking a significant shift in the composition of the influential stock market index. Nvidia's inclusion in the Dow comes after a remarkable two-year period during which its stock price has increased seven-fold, driven by its leadership in AI technology. The company's success is largely attributed to its developments in AI, including...
read Nov 1, 2024Apple iPhone sales rebound as AI push grows, but stock still dips
Apple's iPhone Sales Rebound: Apple reported a 6% increase in iPhone sales for the July-September quarter, reversing two consecutive quarters of year-over-year declines and contributing to better-than-expected overall financial results. iPhone sales reached $46.22 billion, up from the same period last year, indicating renewed consumer interest in Apple's flagship product. The increase in iPhone sales played a crucial role in Apple exceeding analyst projections for quarterly revenue and profit, excluding a one-time tax-related charge. Financial Performance Overview: Despite a significant one-time charge, Apple's financial results for the quarter demonstrated resilience and growth across key metrics. Apple's earnings totaled $14.74 billion,...
read Oct 31, 2024Meta, Microsoft beat earnings expectations on AI push
AI-driven growth in Big Tech: Meta and Microsoft have reported higher-than-expected revenue for the third quarter of 2024, with both companies attributing their success to advancements in artificial intelligence and related services. Key financial results: Meta reported revenue of $40.59 billion, surpassing analysts' predictions of $40.29 billion and representing a 19% year-on-year growth. Microsoft's revenue reached $65.59 billion, exceeding the expected $64.51 billion and showing a 16% increase from the previous year. Google, another tech giant, reported a 15% increase in revenue compared to the previous year, also driven by its cloud division. AI integration and expansion: Meta CEO Mark...
read Oct 31, 2024GIIN survey shows impact investing is increasing but still hesitant towards AI
Impact investing landscape evolves: The Global Impact Investing Network's (GIIN) annual survey reveals significant growth and maturation in the impact investing sector, with larger investors driving expansion and a shift towards more complex asset classes. The survey included 305 impact investing organizations, each managing over $10 million in impact assets or having made at least five impact investments since inception. Approximately 92% of assets came from larger investors with more than $500 million allocated to impact investing strategies. Impact assets overall grew at a compound annual growth rate of 14%, slightly higher than the previous year. Changing investment patterns: The...
read Oct 31, 2024Meta’s AI spending spree surprises even Zuckerberg
Meta's aggressive AI infrastructure expansion: Mark Zuckerberg expresses surprise at the rapid pace of Meta's data center and computing infrastructure buildout for artificial intelligence projects, highlighting the company's ability to exceed initial expectations. Meta has raised the low end of its capital expenditures guidance for 2024 to $38 billion from $37 billion, with the high end remaining at $40 billion. The company anticipates significant growth in expenditures for 2025, including substantial purchases of Nvidia's graphics processing units. Zuckerberg views the rapid execution positively, stating it makes him "somewhat more optimistic" about maintaining a good pace in infrastructure development. Financial implications...
read Oct 30, 2024Meta’s Q3 profit jumps 35% on strong ad sales and AI focus
Meta's robust Q3 performance: Meta Platforms Inc. reported strong third-quarter results for 2023, surpassing market expectations with significant growth in both earnings and revenue. Meta's earnings reached $15.69 billion, or $6.03 per share, marking a 35% increase from $11.58 billion, or $4.39 per share, in the same quarter of the previous year. Revenue climbed 19% to $40.59 billion, up from $34.15 billion in Q3 2022. These results exceeded analyst projections, which had anticipated earnings of $5.22 per share on revenue of $40.21 billion. Driving factors behind growth: The company's strong performance was primarily attributed to increased advertising revenue and its...
read Oct 30, 2024Cloud computing and Office software drive big revenue surge for Microsoft
Microsoft's AI-Powered Cloud Fuels Impressive Q1 Results: Microsoft Corporation has reported stronger-than-expected revenue growth for its first quarter of fiscal year 2024, with cloud computing and Office software leading the charge. Key financial highlights: The tech giant's performance surpassed analyst expectations, demonstrating the growing impact of its artificial intelligence investments. Sales for Q1 (ending September 30) increased by 16% to $65.6 billion, exceeding the average analyst estimate of $64.5 billion. Earnings per share reached $3.30, surpassing the projected $3.11. Overall cloud revenue, encompassing products like Office and Azure, grew by 22% to $38.9 billion. AI's growing influence: Microsoft's strategic focus...
read Oct 30, 2024Google CEO denies plans to split AI from search
Google clarifies CEO's stance on search innovation: Google has addressed confusion surrounding CEO Sundar Pichai's comments about search experiences, emphasizing that he was not suggesting a split between AI-powered and traditional link-based search. During Google's Q3 earnings call, Wells Fargo analyst Ken Gawrelski asked about the possibility of offering two distinct search experiences: an AI-driven answers engine and a traditional links-based search engine. Pichai's response, "I do think having two surfaces for us allows us to experiment more," initially sparked speculation about potential changes to Google's core search offering. Google spokesperson Chris Pappas has since clarified that Pichai was referring...
read Oct 30, 2024Microsoft’s $65.6B quarter has investors wondering whether AI spending was worth it
AI-driven growth propels Microsoft's quarterly performance: Microsoft's latest financial report showcases strong growth across its business segments, with artificial intelligence integration playing a key role in driving innovation and revenue. Financial highlights: Microsoft reported impressive financial results for the July-September quarter, exceeding analyst expectations and demonstrating the company's continued strong performance in the tech sector. Net income reached $24.7 billion, or $3.30 per share, representing an 11% increase compared to the same period last year. Quarterly revenue climbed to $65.6 billion, marking a 16% year-over-year growth. The company's financial performance surpassed Wall Street predictions, which had anticipated earnings of $3.10...
read Oct 30, 2024Reddit achieves first ever profit amid AI-driven growth
Reddit's historic profit milestone: Social media platform Reddit has achieved its first-ever profit in nearly two decades of operation, marking a significant turning point for the company. Reddit reported a net profit of $29.9 million, or 16 cents per share, for the quarter ending September. Revenue reached $348.4 million, surpassing analysts' expectations of $312.8 million. The company's stock has tripled since its initial public offering in March, rising from $34 to $110.20 per share. AI-driven growth strategy: Reddit's recent success can be attributed to its innovative AI initiatives and expanding user engagement, particularly in international markets. A new AI translation...
read Oct 30, 2024Why AMD’s stock dip offers a good buy opportunity
AMD's Q3 Results and AI Chip Outlook: Advanced Micro Devices (AMD) reported strong third-quarter results, but its stock fell due to investor expectations for faster growth in its AI chip business. AMD's revenue increased 18% year-over-year to $6.82 billion, surpassing estimates of $6.71 billion. Adjusted earnings per share rose 31% to 92 cents, matching analysts' expectations. The company's data center segment saw significant growth, with sales more than doubling year-over-year to $3.55 billion. AMD raised its full-year sales projections for AI chips to over $5 billion, a $500 million increase from previous guidance. Market reaction and investment thesis: Despite positive...
read Oct 30, 2024T-Mobile unveils ambitious roadmap with emphasis on AI at investor event
T-Mobile's strategic vision and growth trajectory: T-Mobile recently held its Capital Markets Day in San Francisco, showcasing its past successes and outlining ambitious plans for future growth, with a strong emphasis on leveraging AI and expanding its network capabilities. The company highlighted its impressive performance over the past three years, including adding more than 12 million post-paid net customers and exceeding synergy savings projections from the Sprint merger. T-Mobile's market capitalization has increased by nearly 50% over the past three years, reflecting strong financial results and investor confidence. Fixed Wireless Access (FWA) and fiber expansion: T-Mobile is aggressively pursuing growth...
read Oct 29, 2024What makes Nvidia one of the most valuable companies in the world
AI hardware dominance propels Nvidia to near-Apple valuation: Nvidia, the Silicon Valley chipmaker, became the second most valuable company in the world, briefly surpassing Apple's market capitalization before settling at $3.47 trillion, just shy of Apple's $3.52 trillion valuation. The rise of Nvidia: Nvidia's ascent is primarily driven by its dominance in AI computing processors, positioning the company as a major beneficiary of the AI race among tech giants. Nvidia's stock has risen approximately 18% in October alone, boosted by OpenAI's recent $6.6 billion funding round. The company's stock price has skyrocketed from under $100 per share to around $140,...
read Oct 28, 2024AI offers the promise of increased productivity, but will it be realized?
AI's transformative impact on business productivity: The integration of artificial intelligence into various business sectors is expected to bring significant changes in productivity and workforce dynamics over the next few years, with the potential to reshape industry norms and financial metrics. Leaders across different industries are grappling with the question of how AI will impact their businesses, particularly in terms of workforce automation and productivity gains. While there's a general consensus that AI will automate many rote tasks in fields such as sales, legal work, and software engineering, the exact timeline for these changes remains uncertain. The pace of AI's...
read Oct 24, 2024Tesla margins rebound, but it doesn’t seem to be because of AI
Tesla's Q3 performance shows signs of recovery: The electric vehicle giant's latest financial results indicate a potential turnaround in profitability despite ongoing challenges in the automotive market. Tesla reported delivery growth of 6.4% year-over-year and 4.3% quarter-over-quarter, reaching 462,890 vehicles in Q3 2024. However, automotive revenue growth lagged behind delivery growth, increasing by only 1.3% year-over-year due to declining average selling prices (ASPs). The company's overall revenue of $25.18 billion fell short of analyst expectations by nearly half a billion dollars. Margin improvement drives optimism: Despite lower ASPs, Tesla managed to boost its profitability through significant cost optimizations and production...
read Oct 21, 2024Perplexity’s new Finance tool makes stock research a breeze
Perplexity AI's foray into financial analysis: Perplexity AI has launched Perplexity Finance, a new platform designed to provide users with tools for exploring company financials, stock performance, and industry comparisons. The new finance-focused platform offers real-time stock quotes, historical earnings reports, peer comparisons, and financial analysis tools. Unlike Perplexity's AI-driven search engine, the financial data is sourced from Financial Modeling Prep (FMP), enhancing the trustworthiness of the information provided. Access to Perplexity Finance requires a Perplexity Pro account, priced at $20 per month, and is currently available only on desktop platforms. Key features and capabilities: Perplexity Finance aims to provide...
read Oct 19, 2024The economics and ROI of big tech’s AI spending
The AI investment landscape: Major tech companies are pouring billions into artificial intelligence development, raising questions about the sustainability and efficiency of these massive expenditures. Google's DeepMind chief, Demis Hassabis, has stated that the company plans to invest over $100 billion in AI over time, underscoring the scale of commitment from industry leaders. Nvidia, a key player in AI chip production, reported that its top customer spent $4.2 billion on chips and services in the last fiscal quarter alone. Microsoft has entered into a power purchase agreement with Brookfield, estimated at $10 billion, to support its AI infrastructure needs. Motivations...
read Oct 18, 2024China’s Pony.ai files for US IPO to advance autonomous driving
Chinese autonomous driving company seeks US public listing: Pony.ai, a prominent Chinese autonomous driving and robotaxi developer, has filed for an Initial Public Offering (IPO) with the US Securities and Exchange Commission (SEC), aiming to list on the Nasdaq stock exchange. Founded in 2016, Pony.ai specializes in fully autonomous mobility and has gained recognition through partnerships with major automotive manufacturers like Toyota, GAC Group, and NIO Capital. The company has pioneered commercial autonomous taxi services in Chinese cities such as Beijing and Guangzhou, and has expanded operations to US cities like Tucson, Arizona. Pony.ai's decision to go public follows a...
read Oct 17, 2024Tech executives are setting deadlines for the arrival of AGI
The AI superintelligence race: Ambitious predictions and looming deadlines: Leading figures in the artificial intelligence industry are making bold claims about the imminent arrival of superintelligent AI, setting specific timelines that range from two to six years. Demis Hassabis, head of Google DeepMind, suggests AGI (artificial general intelligence) could arrive by 2030, potentially curing most diseases within the next decade or two. Meta's chief AI scientist, Yann LeCun, expects powerful AI assistants within years or a decade. Sam Altman, CEO of OpenAI, predicts superintelligence could emerge in a few thousand days, enabling solutions to global challenges like climate change and...
read Oct 16, 2024AI chip stocks dip: Is now the time to buy?
Market volatility and chip stock opportunities: Tuesday's trading session saw a decline in stocks, particularly in the semiconductor sector, presenting potential buying opportunities for investors. The S&P 500 retreated from its record-high close on Monday, with notable drops in chip stocks Nvidia and Advanced Micro Devices (AMD). A Bloomberg report suggesting potential caps on AI chip exports to Persian Gulf countries contributed to the decline in semiconductor stocks. Jim Cramer sees this dip as a chance for investors to enter or add to positions in chip stocks, particularly highlighting AMD as "very cheap" compared to Nvidia. Geopolitical tensions and oil...
read Oct 16, 2024Can Wall Street’s 2-year rally continue with so much AI concentration?
Bull market celebrates two-year milestone: Wall Street marks the second anniversary of a remarkable bull market that has seen significant gains in the S&P 500 index, despite facing numerous economic challenges. The S&P 500 has risen 22% in the first year and an additional 33.7% in the second year since October 12, 2022. The index has recorded 44 all-time highs during this period, boosting corporate profits and the value of Americans' retirement accounts and investments. Unusual resilience in uncertain times: This bull market has demonstrated exceptional strength, persevering through various economic hurdles and geopolitical tensions. Stocks continued to rise despite...
read Oct 16, 2024What investors should know about AI tools for crypto
AI tools for crypto: A rapidly evolving landscape: The intersection of artificial intelligence and cryptocurrency trading presents both opportunities and challenges for investors seeking to leverage technology in this volatile market. Unique considerations for crypto AI tools: Crypto markets differ significantly from traditional financial markets, requiring specialized AI algorithms and approaches. AI tools designed for stock markets may perform poorly when applied to cryptocurrencies due to fundamental differences in market behavior. The crypto market is characterized by high volatility, strong influence from sentiment, and relative newness compared to traditional finance. While AI tools can automate trading or provide insights, a...
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