Meta could soon be the world's largest advertising business.Meta Platforms (META 2.96%) has been a big winner in the AI era, up 8x since the stock bottomed out in 2022, and its latest results delighted investors.Revenue jumped 24% in the fourth quarter to $59.9 billion. Ramped-up spending weighed on margins, but investors had expected that, and net income still rose 9% to $22.8 billion, or $8.88 per share.Looking ahead, Meta also issued better-than-expected revenue guidance for the first quarter, calling fo ...

Microsoft - Microsoft is experiencing investor weariness regarding its ability to monetize its AI offerings, particularly in the app layer, despite being fully vertically integrated with hardware and software solutions [2][3][4] - The company reported 15 million paid subscribers for its co-pilot service, indicating some success in its AI initiatives [9] Meta - Meta is recognized as an AI company focused on optimizing ad engagement through recommendation systems, which has led to a significant increase in quarterly revenues that exceeded expectations [6][7] - The current revenue growth is primarily driven by traditional machine learning rather than generative AI, although there is potential for future upside in generative AI investments [7][8] Apple - Apple continues to focus on consumer devices, with strong demand for products like the iPhone 17, but its approach to AI remains unclear [9] - The company has been somewhat insulated from memory price inflation due to advance agreements with suppliers, but future pricing pressures could impact margins and average selling prices [10][11] Tesla - Tesla is transitioning towards becoming a robotics and AI company, with significant investments in autonomy and robotics, although the full realization of these initiatives is still uncertain [12][13] - The success of Tesla's robo-taxi initiative is contingent on public adoption and operational timelines, which remain unclear [15][16]

Core Insights - Unit Corporation (UNTC) did not declare a special dividend in late 2025 after selling its drilling division, which disappointed some investors but ensures the sustainability of its current quarterly dividend of $1.25 per share [2] Company Overview - Unit Corporation's decision not to issue a special dividend follows the sale of its drilling division, indicating a strategic focus on maintaining a stable dividend for shareholders [2] Analyst Background - Aaron Chow, known as Elephant Analytics, has over 15 years of analytical experience and is a top-rated analyst on TipRanks, with a background in mobile gaming and a focus on value opportunities in the energy sector [2]

It was a crowded week on Wall Street, with a Federal Reserve meeting and a slate of major tech earnings. But the moment that ultimately mattered most came Friday morning, when President Donald Trump nominated Kevin Warsh as the next Chair of the Federal Reserve.Warsh is set to replace Jerome Powell when Powell's term expires in May. A former Federal Reserve governor from 2006 to 2011, Warsh was one of the youngest policymakers in modern Fed history, joining the Board at just 35.Warsh is also well known as a ...

Group 1: Apple - iPhone sales grew 23% to $85.3 billion, the fastest pace since 2021, driven by the iPhone 17 lineup, with Greater China revenue at $25.53 billion, up 38% year over year [1] - Apple reported $143.8 billion in December-quarter revenue, a 16% increase year over year, exceeding analyst expectations, with net income of $42.1 billion and EPS of $2.84 [2] - The company expects sales to grow 13% to 16% year over year in the current quarter, indicating momentum [6] Group 2: Meta - Meta's revenue grew 23.8% year over year to $59.9 billion, with operating income at $24.7 billion and a 41.3% margin, guiding for first-quarter revenue growth of 26.4% to 33.5% year over year [10] - Family of Apps advertising revenue rose 24% year over year, supported by an 18% increase in ad impressions and a 6% increase in average price per ad [11] - Meta's capex guidance for 2026 is $115 billion to $135 billion, with total expenses expected at $162 billion to $169 billion, indicating strong operating performance [12] Group 3: Microsoft - Microsoft reported revenue of $81.27 billion, driven by cloud and AI momentum, with Azure growing about 38% year over year [15] - The company has a commercial backlog totaling about $625 billion, up 110% year over year, with bookings up 230% year over year [18] - Guidance for March-quarter revenue is set at $80.65 billion to $81.75 billion, with Azure expected to grow about 37% to 38% in constant currency [20] Group 4: Tesla - Tesla's total revenue was $24.9 billion, with automotive revenue at $17.69 billion and auto gross margins ex-credits at 17.9%, above expectations [22] - Energy generation and storage revenue was $3.84 billion, up 25% year over year, indicating a shift in focus towards energy solutions [23] - Tesla disclosed 1.1 million active FSD subscriptions, up 38% year over year, and plans to halt Model S and Model X production to focus on humanoid robot production [24] Group 5: Overall Industry Insights - The earnings week highlighted how established companies like Apple and Meta continue to show growth, while Microsoft and Tesla focus on building for the future [25] - The market is increasingly scrutinizing spending and investment strategies, with a shift towards accountability in growth narratives [3][5] - The ongoing buildout in technology and AI is being closely monitored, with companies needing to demonstrate that their investments translate into sustainable business models [27]

Google Stock: Will Alphabet Follow Meta With Higher 2026 Capital Spending Guidance? | Investor's Business DailyBREAKING: [Stocks Test Key Levels; U.S. Government Enters Shutdown]---Google parent Alphabet (GOOGL) on Wednesday will likely follow Meta Platforms (META) in guiding to higher-than-expected 2026 capital spending amid growing investments in artificial intelligence data center infrastructure, says a Bank of America analyst. Google stock has climbed 6% in 2026 after surging 65% last year. Further, Met ...

Group 1: Federal Reserve and Market Reactions - President Trump has nominated Kevin Warsh as the next Chair of the Federal Reserve, which is causing market reactions as investors speculate on his hawkish monetary policy stance [1][45]. - The market is currently experiencing a mixed picture, with the S&P 500 down approximately 0.5% and the NASDAQ 100 off by 0.6% [2][46]. - There is a notable concern regarding the impact of rising memory prices on tech companies, particularly Apple, which has reported record quarterly sales but faces investor anxiety over future gross margins [1][17]. Group 2: Apple and Memory Prices - Apple has delivered record quarterly sales, exceeding expectations, but is facing challenges due to rising memory prices, which CEO Tim Cook expects to significantly impact gross margins [17][51]. - The tight supply of memory chips is expected to persist, with analysts indicating that prices will remain higher than usual due to extremely high demand and limited producers [15][56]. - Despite strong sales, there is concern about Apple's ability to navigate future challenges, particularly with forecasts predicting a potential 1% drop in the smartphone market in 2026 [51][54]. Group 3: AI and Economic Implications - Kevin Warsh believes that AI will serve as a significant disinflationary force, improving productivity and potentially doubling standards of living within a generation [5][6]. - There is ongoing debate about the impact of AI on labor and the broader economy, with some experts expressing skepticism about the deflationary effects of AI amidst persistent inflationary pressures [10][12]. - The tech industry is closely monitoring how AI developments will influence market dynamics and regulatory frameworks, especially in light of Warsh's potential leadership at the Fed [4][7]. Group 4: SpaceX and Potential Mergers - SpaceX is reportedly considering a merger with Tesla or AI firm XAI, driven by investor interest in consolidating operations [28][29]. - The potential merger could streamline operations and enhance synergies between the companies, which already have a strong collaborative relationship [30][32]. - However, there are significant regulatory hurdles that could complicate any merger discussions, given the scale of the companies involved [33][34]. Group 5: Amazon and AI Investments - Amazon is reportedly in talks to invest $50 billion in OpenAI, aiming to strengthen its position in the AI market [41][42]. - This investment reflects Amazon's desire to enhance its AI capabilities and compete more effectively with rivals like Microsoft and Oracle [41][43]. - The evolving landscape of AI is leading to a shift in how companies approach partnerships and investments, with a focus on securing access to cutting-edge technologies [43][44].

Too often, in the current investing environment, investors are making a fundamental category error in evaluating the current market leaders, the so-called “Magnificent 7.” The structure of the error goes something like this. Investors look at Mag 7 companies andI've been in the investing world for over 10 years at this point. My interests in writing on Seeking Alpha center around both the larger purview of macroeconomic themes, as well as around microeconomic issues regarding specific companies. In that way ...

Small deep value individual investor, with a modest private investment portfolio, split approx. 50%-50% between shares and call options. I have a B.Sc. in aeronautical engineering and over 6 years of experience as an engineering consultant in the aerospace sector. The latter statement is not relevant in any way whatsoever to my investment style, but I thought to add it for self-indulgent purposes. I have a contrarian investment style, highly risky, and often dealing with illiquid options. How illiquid? Well ...

Core Insights - The market's reaction to Microsoft and Meta's AI strategies highlights a shift from valuing potential to demanding immediate results [2][10][11] Group 1: Microsoft’s Challenges - Microsoft reported earnings that exceeded expectations but saw a nearly 10% drop in stock value, resulting in a loss of $357 billion in market capitalization [1] - The company faces significant infrastructure constraints, particularly a lack of electrical power to utilize advanced AI chips, leading to inventory issues [3][4] - Microsoft's Azure revenue growth slowed from 40% in Q1 to 39% in Q2, indicating that even minor decelerations can be problematic given the high spending expectations [4][12] Group 2: Meta’s Advantages - Meta is also investing heavily in AI, with plans to increase spending to $135 billion in 2026, but its investments are already generating revenue [1][5] - The company reported a 24% increase in advertising revenue to $58.1 billion in Q4 2025, with AI improvements directly enhancing ad performance [6][13] - Unlike Microsoft, Meta's AI advancements can be implemented immediately within existing infrastructure, allowing for quicker monetization [7][8] Group 3: Market Dynamics - The market is transitioning to a "Show Me" phase, where companies must demonstrate that their AI investments are yielding immediate returns rather than just future potential [10][15] - Investors are now focused on the ability to deploy infrastructure and generate revenue within a visible timeline, rather than merely announcing large capital expenditures [11][14] - The divergence in stock performance between Microsoft and Meta illustrates the importance of execution and immediate results in the current investment climate [16]