Motley Fool Money
Big Tech's AI Spending Spree
Nov 1, 2024
Bill Mann, a senior analyst at Motley Fool, and Matt Argersinger, also an analyst, dive into the staggering $200B AI spending by Amazon, Alphabet, and Microsoft and what it means for cloud growth. They discuss Apple's unique AI stance and the impressive first profit of Reddit. David Gardner, co-founder of The Motley Fool, offers investors a calming perspective ahead of the 2024 elections while Bill and Matt analyze two noteworthy stocks, eBay and Super Micro Computer, providing valuable insights into their future potential.
40:23
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Quick takeaways
- Big tech companies like Amazon and Google are significantly increasing their AI-related capital expenditures, raising concerns about the sustainability of these investments amid uncertain returns.
- Eli Lilly faced challenges despite successful GLP-1 drug sales, highlighting the complexities of market expectations and the competitive landscape impacting quarterly results.
Deep dives
Amazon's Strong Earnings Surge
Amazon's shares saw a significant increase following their recent earnings report, with a notable 7% rise just shy of an all-time high. The growth stemmed primarily from their core retail business, which experienced a 9% sales increase in North America and 12% internationally. Additionally, the advertising segment surged, generating $14.3 billion in revenue—19% higher year-over-year—indicating a shift from its previously nascent status. Amazon Web Services also impressed with a 19% sales increase to $27.5 billion, highlighting the company's robust performance despite a cautious consumer outlook.
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