Tech Giants Performance Preview: Amazon, Meta, Alphabet

Yahoo Finance
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As we head into earnings season, three powerful players in the tech industryβ€”the MAG 7 members Amazon, Alphabet, and Metaβ€”are in focus with their collective market value exceeding $5 trillion. Mark Mahini, a Senior Managing Director specializing in Internet research, provides insights into what investors should anticipate from these industry heavyweights. Alphabet is expected to maintain solid double-digit growth in search revenue, while its cloud services gear up for accelerating demand amidst increasing competition in AI. Specifically, Google Cloud is anticipated to show thriving year-over-year growth, despite concerns regarding recent weaknesses in YouTube revenue growth. On the other hand, Meta has outperformed its peers significantly this year, with an expectation of over 60% growth since January. Investors will be closely monitoring the company's capex plans and their effectiveness in leveraging AI for ad revenue enhancements. As for Amazon, overall retail and cloud services performance remains key to its stock trajectory, with AWS growth projected to accelerate due to renewed corporate interest. Companies are faced with the challenge of navigating consumer demand as they advance their AI initiatives.
Highlights
  • β€’ Amazon, Meta, and Alphabet hold a combined market value of over $5 trillion.
  • β€’ Alphabet's earnings will focus on maintaining search revenue growth of 12-14%.
  • β€’ Concerns arise over YouTube's growth, which fell short in the previous quarter.
  • β€’ Google Cloud is expected to show accelerated growth due to increasing industry demand.
  • β€’ Meta's stock has increased by over 60% since the start of the year.
  • β€’ Investors are eager to learn about Meta's capex spending and its impact on AI.
  • β€’ Meta's ad revenue growth has been bolstered significantly by AI implementations.
  • β€’ Amazon is perceived positively with a growth target of $240 per share.
  • β€’ AWS growth is projected to accelerate, increasing its contribution to Amazon's revenues.
  • β€’ Companies are likely to continue investing in AI development despite market pressures.
* dvch2000 helped DAVEN to generate this content on 10/27/2024 .

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