Need to see continued ad engagement from Meta, says NewEdge Wealth's Sechan

Meta's AI Strategy & Challenges - Meta's advertising results are impressive, but the focus is on Mark Zuckerberg's AI vision, given billions of dollars invested in talent and multiple reorganizations of the AI division [1] - Meta faces an existential threat if users prefer chatbots over human interaction on social media platforms, requiring a clear direction from Zuckerberg [2] - Continued ad engagement is crucial, measured by increasing price per ad, increased impressions, and increased time spent, indicating AI investments are yielding results [3] User Engagement & Market Reach - Expectations are for daily active users to increase by 6% [3] - Meta has access to 75% of the world's internet users outside of China, with 35 亿 (3.5 billion) active users out of 45 亿 (4.5 billion) people with internet access [4] Google's Performance & Competition - Google is quieting the narrative around search disruption and proving Google Cloud is gaining market share [5] - Search revenues are expected to rise 11% year-on-year, up 9% from Q1, matching the prior quarter, illustrating resilience against AI competition like ChatGPT [6] - Cloud expectations are for 30% revenue growth year-on-year, an 8% sequential increase, suggesting Google is gaining momentum in AI compute and model access [6] Market Dynamics & Growth - Results from these large tech companies are imperative for new market highs, given their size in the indices [8] - A bull market in the MAG 7 is a prerequisite for an overall bull market, but the question is whether supernormal growth can continue amid stiffer competition [9]