As we head into earnings season, three powerful players in the tech industryβthe MAG 7 members Amazon, Alphabet, and Metaβare 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.
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10/27/2024
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