Motley Fool Money Big Tech’s $300B Spending Spree
21 snips
Feb 7, 2025 
Join Ron Gross, a seasoned Motley Fool analyst, Jason Moser, a senior analyst with a knack for tech insights, and Nick Sciple, an expert on legalized sports betting. They dive into big tech's ambitious $300B spending plans fueled by cloud enhancements. The discussion encompasses Amazon and Alphabet's latest earnings, PayPal's surprising stock dip despite solid results, and Spotify's streaming dominance. Plus, Nick sheds light on the booming sports betting market and the risky allure of parlays, making for a riveting conversation.
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Amazon's Q4 and CapEx
- Amazon reported strong Q4 2024 earnings, beating expectations, but future guidance and high CapEx spooked investors.
- The stock dipped despite impressive metrics, including 10% sales growth and 89% earnings increase.
Alphabet's AI Investments
- Alphabet's Q4 results were respectable with 12% revenue growth and strong cloud performance, but CapEx spending was higher than expected.
- The market reacted by selling off shares, likely due to a modest revenue miss, slower cloud growth, and a $75 billion CapEx announcement.
Big Tech Spending Spree
- Big tech companies like Amazon, Alphabet, Meta, and Microsoft plan to spend over $300 billion in CapEx.
- This investment is primarily driven by AI and data center infrastructure, despite recent DeepSeek developments.