Bloomberg Tech Microsoft and Meta Allay Investors’ Tariff Fears; A Court Deals Apple an Epic Blow
May 1, 2025
Mark Mahaney, Senior Managing Director at Evercore ISI and an expert in internet and media equity research, dives into the impressive earnings of Microsoft and Meta, emphasizing their resilience in tough economic times. He discusses Microsoft's substantial growth in cloud services driven by AI and what this means for the tech landscape. The conversation also touches on Apple's upcoming results, investor expectations, and the ongoing legal challenges facing major tech companies. Mahaney highlights the emerging trends in early-stage AI investments, spotlighting the dynamic startup culture.
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Microsoft's Azure AI Growth Surge
- Microsoft's Azure cloud revenue grew 33% year-over-year, with AI contributing around 16% of that growth.
- Demand for next-gen AI infrastructure is outstripping supply, especially GPUs, showing strong market traction.
Meta's AI Boosts Ads & Engagement
- Meta's AI use increased ad conversion rates by about 5% and boosted user engagement time by 6-7% on Instagram and Facebook.
- Meta remains more resilient than competitors amid tariff headwinds but isn't immune to economic downturns.
Qualcomm's China Dependency Risks
- Qualcomm's business depends heavily on China, making it a test case for tariff and trade impact.
- The company acknowledged challenges but noted that recent performance in China has been stable.