Prof G Markets Big Tech Breaks Away From the Pack as Markets Stumble on Tariff Blitz
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Aug 4, 2025 Scott and Ed dive into the earnings reports from tech giants like Microsoft, Meta, Apple, and Amazon, revealing significant shifts in the cloud sector. They discuss the market's reaction to capital spending and the implications of a recent tariff blitz, highlighting how tech companies remain resilient compared to traditional industries. The duo also engages in a lively debate about the ongoing robotaxi wars, pondering which players in the autonomous vehicle space are best positioned for future dominance.
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Microsoft's Massive AI Investment
- Microsoft is investing heavily in AI infrastructure, spending more on AI than some countries on their military.
- This massive capital spend underscores the tech giants' lead and ambition in AI development.
Meta's Bold AI Strategy
- Meta significantly grew active users and increased AI-related capital expenditure.
- Mark Zuckerberg's willingness to pay above norms fuels aggressive AI talent acquisition and acquisitions.
Tariffs Favor Tech, Widen Gap
- Tariffs mainly hit physical goods companies while tech companies remain shielded, worsening economic disparities.
- This bifurcation favors 'Magnificent Seven' tech giants, expanding market cap gaps in the economy.