Summary
Several major tech companies reported their earnings, and most saw their stock prices rise. The companies are heavily investing in artificial intelligence (AI) to meet the growing demand. There is concern about whether these investments will lead to profits.
Key Facts
- Major tech companies reported earnings, with Amazon reaching a record stock high.
- Only Meta experienced a decline in stock price after earnings report.
- Companies are seeing high demand for AI tools and infrastructure.
- Wall Street predicts AI investments will grow significantly by 2026.
- Meta faced criticism for its level of spending compared to revenue.
- There is risk in heavy AI investment, as the payoff is uncertain and could lead to debt.
- Large companies can pause investments if needed, but smaller ones might face risks if demand doesn't match investment.
