Third-quarter earnings were expected to be a referendum on the AI trade: Is demand holding up? Are companies translating big spending into actual results? How are the finances looking? Now that many of the biggest players have reported, we’ve certainly gotten an indication of how the AI buildout is going. It just might not be
The bull market stumbled Thursday, with US stocks seeing a fresh sell-off amid the latest surge in oil prices and continued anxiety over the AI trade. Oil jumped as markets digested a New York Times report that the US and Israel are planning strikes on Iran after the midterm elections. The report, which cited US
Big Tech is about to run a two-day gauntlet featuring some of the market’s heaviest hitters. Netflix and SpaceX report after the closing bell today. Meta and Tesla follow on Wednesday. All four are, in their own ways, expensive growth stories, and their earnings arrive at a difficult moment for markets. The AI trade has
Meta’s AI strategy once again worries investors. Shares of the social media giant fell 10% on Wednesday after revealing that its capital spending growth far outpaced revenue growth. Meta has a central problem: much of this spending still has no financial return. About 98% of Meta’s revenue still comes from its traditional advertising business, according
