"Shares of Microsoft fell nearly 10% Thursday while Meta jumped roughly 10% after earnings reports from both tech giants Wednesday evening."
""Leave it to [CEO] Mark Zuckerberg from Meta to say that AI has allowed his company to offer the greatest advertising vehicle in the world, aimed at his user base" of 3.5 billion daily active users, Cramer said."
"The market was once concerned that ChatGPT creator OpenAI would threaten the Google parent's dominant search business, and that its own AI technology was inferior."
"After all, Meta stock tumbled on its previous quarterly earnings report in October due in part to concerns about elevated spending on AI initiatives."
Microsoft shares fell nearly 10% after its quarterly report as investors reacted to slowing cloud growth and management's weak responses about AI spending. Meta shares rose roughly 10% as AI investments appeared to accelerate revenue growth and offset concerns about elevated spending. Meta's advertising business comprised 97% of revenue for the quarter, with AI enabling more effective ad targeting across roughly 3.5 billion daily active users. Market sentiment has swung previously: Meta declined after its prior quarter amid spending worries, while Alphabet recovered after positive reception to Gemini and stronger AI-driven cloud demand. Short-term market reactions can reverse quickly.
Read at www.cnbc.com
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