Source: Wall Street News
The sharp decline in Meta raised investors' questions about the profitability of AI and concerns about the tech stock sector as a whole. Some analysts said, “Meta's revenue outlook falls short of expectations, overshadowing any optimistic expectations about AI. ”
One of the leaders in AI$Meta Platforms (META.US)$Financial reports were “unfavorable”, causing investors to panic about technology stocks.
On Wednesday local time, Meta's quarterly report was better than expected, but its revenue outlook for the second quarter fell short of expectations. At the same time, it plans to drastically increase AI spending, causing the stock price to plummet by nearly 20% after the market.
The sharp drop in Meta raised questions about the profitability of AI and concerns about the tech sector as a whole, tracking the NASDAQ 100 index fund$Invesco NASDAQ 100 ETF (QQQM.US)$The pre-market decline was nearly 1%.
According to the media, Jack Ablin, chief investment officer of Cresset Wealth Advisors, said that although Meta will use AI in its business, it is currently not the biggest beneficiary of the AI application wave:
“The under-expected revenue outlook overshadowed any optimistic expectations about AI. The exact extent to which users will benefit is unclear, and while AI may eventually bring some cost savings, this is currently not obvious.”
Earnings will be announced on Thursday$Alphabet-A (GOOGL.US)$/$Alphabet-C (GOOG.US)$und$Microsoft (MSFT.US)$Stock prices all fell before the market. Google's parent company Alphabet fell about 3% before the market, and Microsoft fell nearly 2%. From the same social media company as Meta$Snap Inc (SNAP.US)$und $Pinterest (PINS.US)$Both fell by about 4%.
As the biggest beneficiary of AI spending,$NVIDIA (NVDA.US)$The stock price also fell, closing down 3.33% overnight, and fell more than 1% before the market.$Micron Technology (MU.US)$und$Advanced Micro Devices (AMD.US)$Other chip makers dropped more than 1% before the market, and server manufacturers$Super Micro Computer (SMCI.US)$und$Dell Technologies (DELL.US)$They all fell by about 1%.
Other tech stocks have not been spared.$IBM Corp (IBM.US)$It plummeted more than 8% before the market. The financial report released on the same day showed that its profit for the first quarter exceeded expectations, but sales were slightly lower than expected. software manufacturer$ServiceNow (NOW.US)$It plummeted by nearly 5% before the market. Financial reports showed strong earnings for the first quarter, but the performance guidance was slightly lower than expected.
editor/tolk