LONDON (IT BOLTWISE) – The latest quarterly figures from tech giants Microsoft, Meta and Alphabet show a mixed picture. While Alphabet is benefiting from strong cloud growth, Microsoft and Meta are struggling with the impact of heavy investments in AI infrastructure, weighing on their stock prices.
Today’s daily deals at Amazon! ˗ˋˏ$ˎˊ˗
The latest quarterly figures from tech giants Microsoft, Meta and Alphabet have sent the financial markets into turmoil. While Alphabet is benefiting from impressive growth in the cloud sector, Microsoft and Meta are facing challenges that are dragging down their stock prices. The boom in artificial intelligence (AI) is driving sales to record highs, but the associated high investments are weighing on profits.
Microsoft was able to increase its sales by 18 percent to $77.7 billion, which is primarily due to the 40 percent growth in the Azure cloud division. Operating profit rose 24 percent to $38 billion. CEO Satya Nadella announced plans to invest $120 billion in AI infrastructure by 2025. However, that announcement led to a 2.5 percent after-hours share price decline as investors viewed the high spending with skepticism.
Alphabet, on the other hand, achieved quarterly sales of over $100 billion for the first time, an increase of 16 percent. Particularly noteworthy is the growth of the cloud division, which increased by over 100 percent to $15.16 billion. Robust advertising revenue also contributed to this success. Net income per share rose 35 percent to $2.87, sending the stock up five percent in after-hours trading.
Meta, on the other hand, is under pressure as a special write-off of $16 billion due to the US tax reform is weighing on profits. Despite strong operating figures, the announcement of further massive investments led to a collapse in profits and a share price slide of around ten percent after trading. These developments show that while the AI boom is driving sales, it also requires significant investments that can weigh on profits.
Order an Amazon credit card without an annual fee with a credit limit of 2,000 euros!
Bestseller No. 1 ᵃ⤻ᶻ “KI Gadgets”
Bestseller No. 2 ᵃ⤻ᶻ “KI Gadgets”
Bestseller No. 3 ᵃ⤻ᶻ “KI Gadgets”
Bestseller No. 4 ᵃ⤻ᶻ «KI Gadgets»
Bestseller No. 5 ᵃ⤻ᶻ “KI Gadgets”
Please send any additions and information to the editorial team by email to de-info[at]it-boltwise.de. Since we cannot rule out AI hallucinations, which rarely occur with AI-generated news and content, we ask you to contact us via email and inform us in the event of false statements or misinformation. Please don’t forget to include the article headline in the email: “AI boom drives sales, but weighs on profits at tech giants”.
The post AI boom drives sales but weighs on profits at tech giants appeared first on Veritas News.
