After the collapse of the Meta stocks in the middle of the week, the technology sector is returning with growth on Wall Street thanks to strong earnings reports from Alphabet, Snap, and Microsoft. This was reported by UNN with reference to Eulerpool and Fast Company.
Details
After Meta's quarterly report was released on Wednesday evening, which was very negatively received by the stock market, Alphabet and Microsoft published their quarterly results yesterday, which impressed many analysts.
Snap shares rose by more than 30% after the publication of the report, while Alphabet shares rose by 13%. Microsoft shares, meanwhile, jumped 5.5%.
There were many reasons for such jumps, but artificial intelligence is the basis for investors' celebration.
Microsoft reported a 31% growth in its Azure division and noted that 7% of this amount came from AI. Customers are increasingly using AI tools that aggregate documents and generate content, or choosing Azure cloud subscriptions with OpenAI products.
Microsoft's AI-related sales have already become a key factor in the stock's growth
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Alphabet has announced its first-ever dividend (20 cents per share) and a $70 billion share buyback.
Google's parent company generated $9.6 billion in revenue from cloud computing. "The company has a lot of momentum," said Sundar Pichai, CEO of Alphabet, in a statement.
And Snap gave a forecast for the upcoming quarters, saying that it expects the number of daily active users in the second quarter to grow by 9 million to 431 million, which is more than analysts expected.
Recall
Elon Musk is likely to raise $6 billion for his AI startup xAI, a competitor to OpenAI, to develop "good" general artificial intelligence that aims to understand humanity.
Microsoft said that over the past 45 days, Russian cyber groups have become more active in their efforts to influence the upcoming US presidential election.