Stock Movers Microsoft, Meta, Alphabet Post Earnings
5 snips
Oct 29, 2025 Emily Grafeo, a cross-asset reporter at Bloomberg News, joins to explore the recent earnings reports from major tech giants. She discusses Meta's troubling forecast with rising expenses and a hefty tax charge affecting its share price. Microsoft faces investor anxiety over rising AI infrastructure costs, while Alphabet shines with strong cloud performance, boosting its stock. The conversation also delves into Meta's bold ambitions in AI and AR, reflecting on Zuckerberg's vision for future tech developments.
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Microsoft's Spend Signals AI Demand
- Microsoft beat revenue and EPS estimates while cloud (Azure) growth surprised on the upside.
- High spending signaled rising AI infrastructure demand that may justify the higher costs if demand persists.
Alphabet's Cloud Powers AI-Led Rally
- Alphabet beat sales and EPS estimates while its cloud unit benefits from AI startups seeking compute and support.
- The company raised full-year CapEx as it pours money into AI data centers and custom chips.
Weigh AI Spending Against Payoff
- Investors should weigh spending promises against potential long-term AI payoff when valuing big tech.
- Consider whether capital expenditure increases align with clear AI projects and realistic timelines.