Market wants change from promise to profit in megacap tech earnings, says Plexo Capital's Lo Toney

AI Investment & Performance - The market anticipates a shift from promises to tangible performance and profits from AI infrastructure investments exceeding $300 billion [2] - Meta and Alphabet face scrutiny regarding AI investments driving monetization within their advertising businesses and maintaining margins amidst substantial capital expenditure [3] - Investors are showing a preference for current performance over future potential and hype [5] - The "Magnificent 7" are under pressure to demonstrate near-term returns on their AI investments [6] Competitive Landscape & Threats to Google/Alphabet - OpenAI's browser launch poses a threat to Alphabet's search market share [6] - Perplexity, an aggregator of model results, has also launched its own browser, intensifying competition for Google/Alphabet [8] - These new browsers aim to control the entire user experience, influencing both user behavior and platform access [9][10] - Google/Alphabet faces an innovator's dilemma, balancing AI advancements with protecting its $175+ billion search business [3][11] Cloud Business - Microsoft and Amazon's cloud businesses will provide a bellwether picture of the market [4]