Tech Giants' Earnings and AI Spending Plans Under Scrutiny
As major tech companies report earnings, investors focus on AI investments and their impact on financial performance.
- Alphabet, Meta, Microsoft, Amazon, and Apple are set to release earnings, with AI spending plans in the spotlight.
- The 'Magnificent 7' tech stocks have underperformed recently, raising questions about the return on AI investments.
- Investors are cautious as AI-related capex has surged, but revenue gains have not kept pace for most mega-cap tech firms.
- U.S. stock markets showed modest gains, driven by lower oil prices and anticipation of tech earnings.
- Global economic factors, including rising U.S. bond yields and geopolitical tensions, add uncertainty to market outlooks.