Deerra Bosa has more in today's tech check. Dearra, >> hey Kelly. So the early shift in earning season is how the market is pricing AI.It's become Googleesque, meaning that investors are rewarding companies that really own the full stack of AI. So through that lens, uh Meta spending it does look bullish. It's expensive, yes, but it's also internal.Meta controls the models, the infrastructure, the distribution. So that is the control the full control that the market is rewarding these days. Microsoft by cont ...

Core Insights - The earnings reports from Microsoft and Meta have elicited mixed market reactions, highlighting contrasting investor sentiments towards their AI investments [2][4][13] Microsoft - Microsoft continues to invest aggressively in AI, but faces concerns regarding its dependency on OpenAI and the potential return on investment (ROI) from these expenditures [3][6] - Azure's growth is projected to remain stable, with a growth rate above 35% considered impressive, yet the market reacted negatively to Microsoft's latest report [3][4] - The company is also grappling with broader disruptions in the software market due to AI, which may affect its revenue model and sales processes [5][6] Meta - Meta's aggressive investment in AI has yielded positive results, particularly in ad revenue growth, which has been significantly enhanced by AI-generated content [4][9] - The company reported a capital expenditure (capex) of up to $135 billion, which investors reacted positively to, contrasting with previous reports [7][12] - Despite the positive revenue growth, concerns remain about Meta's lack of business diversification compared to competitors like Google, as it primarily relies on ad revenue [10][11] Financial Performance - Meta's projected free cash flow for the year is expected to be around $12-13 billion, a significant decrease from nearly $50 billion in the previous year [12] - The company is also increasing its debt levels, raising questions about the sustainability of its aggressive AI investment strategy [12][13]

Earnings Reports - Microsoft and Meta both beat expectations, with Meta increasing its CapEx spending to $17 billion, a 41% growth from last year [4] - Microsoft stock fell 10% post-earnings, while Meta's stock rose 10%, indicating differing market reactions despite similar news [5] - Meta's average revenue per user reached $16.56, up 16% year-over-year, marking 10 consecutive quarters of double-digit growth [9] - Microsoft continues to see solid growth in its cloud segment, but concerns arise about reaching a peak [10] - Tesla's earnings report showed declines in deliveries and production, with the stock initially rising but then fading [12] - Apple reported record sales with iPhone revenue exceeding $85 billion and services revenue surpassing $30 billion, but the stock declined due to perceived lack of investment in AI [16] Health Insurance Sector - UnitedHealth's stock dropped 20% after projecting a revenue decline in 2026, the first such decline in decades, influenced by proposed minimal increases in payment rates [18] - Other health insurance stocks also fell, with Humana down 21%, CVS down 14%, and Molina Healthcare down 8% [19] Travel and Leisure Industry - Royal Caribbean's stock rose 19% following stronger-than-expected guidance, indicating double-digit growth in revenue and earnings [21] - Southwest Airlines also saw a 19% increase in stock price, projecting a 300% rise in EPS for 2026 compared to 2025 [22] - The performance of these companies suggests underlying demand in the travel and leisure sector [23] Upcoming Earnings - Anticipation builds for Amazon and Alphabet's earnings reports, with a focus on Amazon's AWS performance and Alphabet's investment strategies in AI [24][27] - Other notable companies reporting include Uber, Qualcomm, and several pharmaceutical firms [28] Macro Economic Insights - The upcoming jobs data is expected to be significant, with previous reports showing only 50,000 jobs added, raising concerns about potential negative revisions [36] - Consumer confidence remains low, attributed to persistent inflation and rising prices affecting daily life [39][40] - The political landscape may further influence consumer perceptions of the economy, especially with midterm elections approaching [43]

Jim Cramer had some frank words for Meta Platforms (NASDAQ:META) CEO Mark Zuckerberg. Cramer said the market was losing confidence in him and the company "lost its way†. However, there are some nuances regarding what Cramer says and believes about the META stock. The company has been doing well financially, but the high spending and opaque AI prospects have made investors uneasy. Many fear that growth will turn anemic if the advertising sector takes a dive, and this will leave Meta Platforms without the f ...

Quick Read Meta (META) beat Q4 expectations with $8.88 EPS versus $8.16 expected. Revenue reached $59.9B above the $58.4B consensus. Meta’s cash fell to $44.5B from $77.8B in Q4 2024. Debt increased to $51B from $49B. Meta stock rallied 14% after earnings as strong advertising revenue eased concerns about AI infrastructure spending. Investors rethink 'hands off' investing and decide to start making real money Jim Cramer had some frank words for Meta Platforms (NASDAQ:META) CEO Mark Zuckerberg. Cr ...

Key Takeaways Corning signs deal with Meta to provide optical fiber and connectivity for AI data centers.Investment includes major expansion at the Hickory, NC, plant and workforce growth.Partnerships with Ensurge and GlobalFoundries boost tech innovation and U.S. manufacturing.Corning Incorporated (GLW) has signed a long-term deal worth up to $6 billion with Meta Platforms (META) to support U.S. data center expansion, creating high-quality jobs, boosting local economies, and reinforcing the U.S. position i ...

Core Insights - Meta Platforms has shifted its focus from the metaverse to artificial intelligence, indicating a potential reduction in the priority of its Reality Labs division [2] - The company is laying off 10% of employees in its Reality Labs business, which may signal larger reductions in the future [2] - Despite the layoffs, Meta is not abandoning the metaverse but is reallocating funds towards augmented reality glasses [4] Group 1: Financial Performance - The Reality Labs division incurred losses of $19.2 billion in 2025, an 8% increase from the previous year's loss of $17.7 billion [7] - In contrast, the Family of Apps segment generated a profit of $102.5 billion in the past year, highlighting the profitability of Meta's core social media assets [7] Group 2: Strategic Direction - Meta is redirecting investments rather than making significant changes to its metaverse business, suggesting a cautious approach to spending [5] - The company’s ongoing growth in its Family of Apps business compensates for the losses in Reality Labs, indicating a balanced portfolio [6]

I aim to provide alpha-generating investment ideas. I am an independent investor managing my family's portfolio, primarily via a Self Managed Super Fund. You can expect my articles to deliver a clearly structured, evidence-based thesis.I have a generalist approach as I explore, analyze and invest in any sector so long there is perceived alpha potential vs the S&P500. The typical holding period ranges between a few quarters to multiple years.A bit about how I approach research and coverage of a stock:I build ...

Earnings Overview - The Q4 2025 earnings season shows solid earnings and sales growth for the S&P 500, but the percentage of companies beating expectations is lower compared to previous periods [1] - Post-earnings reactions have varied, with Meta Platforms (META) experiencing a share price increase while Microsoft (MSFT) faced significant declines [2] Microsoft (MSFT) Performance - Microsoft reported a double-beat with adjusted EPS of $4.14, a 24% year-over-year increase, and sales of $81.3 billion, up 17% from the previous year [3] - Despite impressive headline growth, investor concerns arose due to high capital expenditures of $37.5 billion, primarily for cloud and AI investments, and a slowdown in Azure growth [4][6] - Azure's revenue growth decelerated to 31% year-over-year, down from previous growth rates of 35% and 39% [8] Meta Platforms (META) Performance - Meta also achieved a double-beat with adjusted EPS of $8.88, an 11% year-over-year increase, and a 24% rise in sales [9] - The company saw a 7% year-over-year increase in average Family Daily Active People, reaching approximately 3.6 billion, and ad impressions grew by 18% [10] - Meta's full-year 2026 expense guidance is between $162 billion and $169 billion, with significant allocations for infrastructure and talent compensation [12] Comparative Analysis - The contrasting post-earnings reactions highlight the market's differing perceptions of capital expenditures and growth rates between META and MSFT [13]

Group 1 - The focus is on uncovering high-yield investment opportunities for individual investors [1] - The goal is to simplify complex concepts into actionable insights for better returns [1] Group 2 - The article expresses the author's personal opinions and does not provide compensation for the content [2] - There is a beneficial long position in the shares of META, indicating a positive outlook on the stock [2]