Meta's stock skyrocketed 12% after an impressive earnings report and a bold commitment to AI investments. Meanwhile, eBay's shares surged on optimistic sales forecasts amid shifting consumer confidence. In contrast, Shake Shack faced challenges with a 14% drop in stock due to disappointing revenue projections. The discussion also highlights the rise of industrial AI, showcasing how it boosts productivity on the shop floor and the role of platforms like Siemens Accelerator in facilitating AI partnerships.
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Meta's Earnings and AI Investment Surge
Meta Platforms shares soared nearly 12% after crushing Q2 earnings expectations.
Strong legacy advertising fuels AI investments and lifts operating margins to 43%.
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Investors support Meta's increased AI and CapEx spending despite early results.
Companies must invest now to seize long-term AI opportunities.
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eBay Sales Signal Consumer Caution
eBay shares jumped 19% on strong sales projections beating estimates.
Growth in used and refurbished goods sales signals cautious consumer behavior.
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- Meta Platforms (META) shares are surging today. This comes after the company reported earnings after the bell yesterday and blew out second quarter earnings expectations. Meta is taking advantage of its lucrative advertising business and stepping up spending next year, with executives saying now is the time to seize on investment opportunities in artificial intelligence. Investors cheered the plan, sending shares up as much as 12% to $779.34 after markets opened in New York on Thursday, marking a record high. The social media giant reported second-quarter earnings on Wednesday that beat Wall Street estimates and forecast better-than-expected results for the current quarter. “We really believe that this is a time for us to really make investments in the future of AI, as I think it will open up both new opportunities for us in addition to strengthen our core business,” Chief Financial Officer Susan Li told investors during a call after the results were announced. Meta executives underscored that its evolving AI technology, which has been integrated into its ads products, is already producing “meaningful” revenue.
- eBay (EBAY) shares jumped after the company projected sales that topped analysts’ estimates, suggesting optimism for continued consumer resilience at a time of shifting US tariff proposals. Revenue will be $2.69 billion to $2.74 billion in the period ending in September, the company said Wednesday in a statement. Profit, excluding some items, will be $1.29 to $1.34 a share. Analysts, on average, estimated sales of $2.65 billion and per-share earnings of $1.31, according to data compiled by Bloomberg. Investors have been seeking clues about how consumers are reacting to President Donald Trump’s trade war, which is expected to fuel inflation. eBay has seen the sale of used and refurbished goods grow faster than other categories with shoppers eager to save money.
- Shake Shack (SHAK) shares slumped after the company forecast third-quarter revenue that fell below expectations, pointing to inflation and cautious diners. The burger chain said it expects the metric to be between $358 million and $364 million, just shy of the average estimate of analysts polled by Bloomberg. Shake Shack said its outlook factors in a “degree of pressure on the consumer spending landscape and ongoing inflationary headwinds.” The New York-based company has pledged to ramp up the pace of new product launches and increase advertising, while scrutinizing its supply chain to keep a lid on costs. The company said that its efforts are showing promise, though it hasn’t yet been enough to offset the economic anxiety that has hit restaurant visits.
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