Welcome to Extreme Investor Network, where we provide you with unique insights and analysis on the latest trends in investing. Today, we take a closer look at the recent earnings reports from megacap technology companies Meta Platforms and Microsoft.
Investors are closely monitoring capital expenditures this reporting season, particularly in the realm of artificial intelligence investments. Concerns about the payoffs from these investments have influenced market sentiment and put pressure on tech giants like Meta Platforms and Microsoft. Analysts like Gil Luria from D.A. Davidson and Ronald Josey from Citi are paying close attention to capex figures as indicators of demand for companies like Nvidia.
Meta Platforms, formerly known as Facebook, is expected to report third-quarter earnings of $5.25 per share, with revenue projected to reach $40.29 billion. Analysts are eager to see how AI is impacting the company’s core product and advertising spending. With a strong suite of products and profitability, Meta Platforms remains a top pick for many analysts.
On the other hand, Microsoft faces a tougher bar as it heads into its earnings report. Analysts are looking for insights into Azure’s reacceleration and AI monetization. Despite lagging behind some of its peers, Microsoft’s performance this year has created an attractive setup for investors, according to Morgan Stanley’s Keith Weiss.
Overall, both companies are navigating the challenges of balancing investments in AI with meeting investor expectations. As we continue to track their progress, stay tuned to Extreme Investor Network for expert analysis and actionable insights to help you navigate the world of investing. Subscribe today to stay ahead of the curve and make informed investment decisions.