AI spending fears threaten to swamp Big Tech’s strong earnings
Based on the violent market reaction to Meta's rising capital expenditures last week, the response to any disappointment likely won't be forgiving.
Despite three of the world's leading technology companies anticipating robust earnings growth in the coming week, Wall Street remains cautious. The market's reaction to Meta Platforms' increased artificial intelligence (AI) spending has been particularly alarming, leading investors to express a lack of patience for further capital expenditures (capex).
Portfolio manager John Belton of Gabelli Funds explained that while the stock market may temporarily ignore negative signs, the long-term impact could significantly destabilize the market.
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- AI spending fears threaten to swamp Big Tech’s strong earnings businesstimes.com.sg
